Key Takeaways
- • CPP Investments is creating a new department called active public markets, combining its C$866.2 billion ($610.5 billion) active equities team with its capital markets and factor investing team, according to a Nov. 10 news release.
- • Heather Tobin, senior managing director and global head of capital markets and factor investing, will lead the combined unit as global head of active public markets.
- • Frank Ieraci, senior managing director and global head of active equities, is stepping back from CPP Investments after nearly 20 years at the organization.
- • The active equities team posted a net loss of C$6 billion over the five years ended March 31, per the most recent annual report, while the capital markets and factor investing team recorded a net gain of C$14.2 billion over the same period.
- • The active equities team employed 120 people as of March 31; most will move to the new department, but Bloomberg reported that the restructuring will still result in dozens of layoffs.
Summary
Canada Pension Plan Investment Board (CPP Investments), Toronto, is consolidating two of its public markets teams into a new investment department called active public markets. According to a Nov. 10 news release, the new unit combines the active equities team with the capital markets and factor investing team within the C$866.2 billion ($610.5 billion) pension fund. Heather Tobin, senior managing director and global head of capital markets and factor investing, will take on the title of global head of active public markets and lead the combined group. Frank Ieraci, who has served as senior managing director and global head of active equities, has decided to step back from the organization after a career spanning nearly 20 years, the release said.
The restructuring follows a difficult five-year stretch for active equities. CPP Investments' most recent annual report showed a net loss of C$6 billion for the active equities team over the five years ended March 31. The report attributed much of the weakness to emerging markets, citing losses in fiscal 2023 after unexpected regulatory changes in China. A more selective approach to China has been adopted since fiscal 2025, reducing exposure amid ongoing policy and market uncertainty. Developed market investments contributed positively, mainly in North America and Europe, but those gains were offset by losses in fiscal 2026 as select holdings did not perform in line with expectations.
By contrast, the capital markets and factor investing team generated a net gain of C$14.2 billion over the same five-year period, according to the annual report. That team manages both externally managed hedge funds and internally managed systematic strategies that invest globally across public equities, fixed income, currencies and commodities.
The active equities team employed 120 people as of March 31. Most of those staff will move to the new department, but Bloomberg reported that the restructuring will still result in dozens of layoffs. The news release described the consolidation as a "logical evolution that brings together two related and complementary investment activities in one stronger team, enabling us to deliver greater value for the CPP Fund."
The restructuring follows a difficult five-year stretch for active equities. CPP Investments' most recent annual report showed a net loss of C$6 billion for the active equities team over the five years ended March 31. The report attributed much of the weakness to emerging markets, citing losses in fiscal 2023 after unexpected regulatory changes in China. A more selective approach to China has been adopted since fiscal 2025, reducing exposure amid ongoing policy and market uncertainty. Developed market investments contributed positively, mainly in North America and Europe, but those gains were offset by losses in fiscal 2026 as select holdings did not perform in line with expectations.
By contrast, the capital markets and factor investing team generated a net gain of C$14.2 billion over the same five-year period, according to the annual report. That team manages both externally managed hedge funds and internally managed systematic strategies that invest globally across public equities, fixed income, currencies and commodities.
The active equities team employed 120 people as of March 31. Most of those staff will move to the new department, but Bloomberg reported that the restructuring will still result in dozens of layoffs. The news release described the consolidation as a "logical evolution that brings together two related and complementary investment activities in one stronger team, enabling us to deliver greater value for the CPP Fund."
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