CANADA - The Canadian Pension Plan (CPP) Investment Board has defended its decision to invest in asset backed commercial paper (ABCP) and cited market confusion as an opportunity to make money.
A statement from CPP said: "Current market conditions present good opportunities to purchase high-quality, bank-sponsored fixed income securities at an attractive yield to earn risk-adjusted returns.
"The opportunity stems from confusion in the marketplace between high-quality bank-sponsored ABCP and significantly lower-quality non bank-sponsored ABCP."
The C$121bn (US$121bn) fund announced that as of mid-December it held C$6bn (US$6bn) in the vehicle.
Non-bank sponsored ABCP hit the news recently as assets were frozen and became the subject of the Montreal Accord negations calling for better regulation of the class.
CPP actively emphasised the difference between the two classes of investment, covering the different areas of debt in which they invested and levels of leverage.
At the end of November, compatriot investor La Caisse de Depot et Placement du Quebec announced it had made a potential C$500m (US$500m) write down due to its holdings in sub-prime ABCP.
HMRC has confirmed providers operating relief at source pension schemes can continue to collect automatic tax relief at a basic rate of 20% under new Scottish Income Tax rules.
The Pensions Regulator (TPR) is seeking "improved" powers to set a schedule of contributions in defined benefit (DB) schemes in the government's upcoming white paper, it has revealed.
New regulatory rules which require providers and advisers to produce annuity illustrations will not solve the problem of consumer detriment as they are "fundamentally" flawed, according to Retirement Advantage.
Paul Budgen is set to join financial technology and auto-enrolment (AE) firm Smart Pension as director of business development.