Stephan Rupert Appointed CIO of Canada Growth Fund Investment Management

Stephan Rupert

Stephan Rupert has been appointed CIO of Canada Growth Fund Investment Management, a spokesperson for the firm told CIO. Rupert will be the inaugural CIO of CGFIM, which began making its first investments late last year.

CGFIM is a subsidiary of Canadian pension fund PSP Investments that manages the Canada Growth Fund, a C$15 billion ($10.94 billion) initiative to invest in Canadian businesses and technologies to accelerate the country’s path to net-zero.

The Canada Growth Fund was incorporated in December 2022 and made its first investment in October 2023, investing $90 million in Calgary-based geothermal energy company Eavor Technologies. In March, the fund made a C$50 million commitment to energy transition investment manager Idealist Capital.

In his role as CIO, Rupert will lead the fund’s portfolio construction strategy and investment execution activities, Rupert said in a post on LinkedIn. CGFIM has committed C$1.34 billion in investments so far, according to Rupert.

CGFIM focuses on investing in three key areas, projects that reduce emissions across the Canadian economy, including carbon capture storage and biofuels; clean technology companies; and low-carbon supply chains.

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Rupert has worked at PSP Investments for 11 years, most recently as a managing director, head of Americas, infrastructure investments at the fund. He was previously vice president of corporate development at RailAmerica Inc. and a manager, mergers and acquisitions, at CN Rail.

Rupert has a bachelor’s degree in civil engineering and a MBA in finance from McGill University. Rupert is also a CFA charterholder.

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Tags: Canada Growth Fund, Canada Growth Fund Investment Management, CGFIM, PSP Investments, Stephan Rupert

The first quarter of this year marked was the largest first quarter on record, as estimated $15 billion in pension risk transfers closed in the period. According to Legal & General Retirement America, the activity significantly outperformed the previous record of $6.3 billion in 2023 and nearly triple the 2022 amount of $5.3 billion.

LGRA found that jumbo transactions continue to be the driving force behind the market’s strong performance, as two transactions that closed in Q1 totaled $11 billion. Verizon Communications Inc. completed a $5.9 billion PRT deal with Prudential Insurance Co. of America and RGA Reinsurance Co. in March, and Shell USA, Inc. completed a $4.9 billion deal with Prudential in February.

In addition, LGRA stated in its new market update that U.S. pension funding status remains high and plays a role in the number of transactions that come to market. For example, in April 2024, the U.S. pension funding ratio was 107.6%, according to LGIM America.

As funded levels stay elevated, LGRA predicts that there will be continued demand for de-risking from plan sponsors who are in a good position to complete a PRT.

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However, in an analysis of U.S. pension funded status in April, actuarial and investment consulting firm Agilis cautioned that pension plan sponsors looking to go through with a PRT may “want to do so quickly,” as the likelihood the Fed will drop interest rates this year could rise depending on how economic data turns out in the coming weeks and months.

Looking ahead, LGRA estimated the first half of 2024 will close at around $22 billion in PRT transactions, which is in line with what was seen in the first half of 2023. With jumbo transactions driving the most total market volume, LGRA expects at least three more to close this year.

Aon’s recent U.S. Pension Risk Transfer Report predicted that the PRT market will likely exceed $40 billion in premiums by the end of 2024. In addition to funded status improvement and higher interest rates, Aon attributed growing interest in PRTs to increasing Pension Benefit Guaranty Corporation premiums. In 2024, premiums rose to $101 per participant and $52 per $1,000 for the underfunded variable rate, Aon found.

Tags: Agilis, Aon, Legal & General Retirement America (LGIMA), Pension Risk Transfer, Prudential Insurance Co. of America, RGA Reinsurance Co., Shell USA, Verizon

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