CIBC Mellon executive on how diverse stakeholders share a purpose
Collaboration and innovation have become must-haves in pension asset management—just take it from CIBC Mellon executive director Ailstair Almeida, who shared his insights about the pivotal role of collaborative engagement in the current success of the Canadian pensions market.
In the world of pensions, Almeida noted in Global Investor’s 2023 Autumn Magazine that Canada stands out with its unique approach that emphasizes continuous and respectful engagement among a diverse set of stakeholders. The system is built on a shared purpose, which is strengthened by a commitment to strong governance, leadership, accountability, and transparency.
Historically, Canadian pension plans have been successful in terms of return on investment—and Almeida chalks it up to our unique collaborative approach. Stakeholders are able to recognize the mutual benefits of working together, whether they are plan members, plan sponsors, legislators, regulators, labor unions, employers, or the leaders at pension entities.
“While Canadian pension plans have demonstrated a history of success, with a remarkable return on investment, it is their unique approach to collaboration that stands out,” Almeida said.
Almeida said the pursuit of better outcomes for stakeholders is relentless among Canadian pension plan sponsors and fund managers. Interestingly, even the largest plans are increasingly acknowledging that they may not have the resources or capacity to excel in all areas of responsibility. As a result, Canadian pension plan sponsors and fund managers are turning to specialized providers for support, fostering a more collaborative ecosystem where expertise and resources are shared.
The hunt for scale is another factor to driving efficiencies, pricing power, and specialist capabilities in Canadian asset management. Almeida's insights reveal that scale is intricately linked to collaborative efforts that enhance organizational capacities and outcomes.
Ultimately, the Canadian pension landscape aims to transform pension funds into long-term, socially productive investment assets. Almeida identifies independence, collaborative engagement, performance, and a shared purpose as the cornerstones of a purpose-driven investment framework.
