In a vote of confidence for London as a global financial centre, one of Canada’s major pension plans is set to boost its business in the UK. The Healthcare of Ontario Pension Plan (HOOPP) will add to its UK staff as it makes a fresh push into private markets, according to its chief investment officer.
“All the Maple 8 plans are here,” Michael Wissell said, referring to the group of Canada’s largest pension schemes that has a presence in London’s financial district (known as the ‘City’) already.
“There’s a great talent of pool here (with which) we can augment our Canada-based team, and a great number of our partners are here. It conspires to make London a natural place for us.”
HOOPP, which oversees $113bn on behalf of members, has opened a temporary office which will soon move to a permanent location (near Piccadilly) and is staffed by senior employees who have relocated from Ontario. Wissell said the office will be staffed with 12 people initially, with hires being sourced in the UK rather than relocations from Canada.
Nic Aaviku, who heads real estate investment at HOOPP, as well as Christopher Mazza, who leads on private equity, are among those to move to London. Wissell said it is looking to appoint someone in the UK to oversee infrastructure investments. HOOPP’S arrival follows an increased appetite for private market exposure from the 65,000-member pension scheme.
“We still have a heavy focus on public assets but we have long-term liquidity so we can afford to put a portion of our assets in different deals that offer a lot of diversification,” Wissell said.
“We have a predisposition to invest in Canada. More than anything else, I need to diversify. That’s why we are here now.”
He added: “It’s about boots on the ground and trying to spot more opportunities. It’s already starting to develop, “We’re not the biggest plan compared to others but we’re here to be a great partner where outside capital is needed.”
HOOPP’s move comes as the UK tries to attract more investment to the country. Last year’s Mansion House Compact was signed by a group of pension providers who pledged to invest a proportion of their assets in unlisted securities by 2030.
Over the past 25 years UK pension funds have slashed their exposure to domestic equities and several listed companies have left London for other financial centres including New York.
Wissell dismissed any concern about London’s status as an investment hub, adding that the City will remain a “world-class financial centre” over the long term. “The talent pool here is fantastic,” he said. “The UK is going to be a great place to invest over the next 5 or 10 years, and London will be a great place to be over that time.”
Last year British Columbia Investment Management Corporation, a Canadian pension plan which oversees $250bn, opened a London office, its first outside North America. The confidence shown in London as a “great place to invest” is not surprising.
London is closing in on New York for the title of the world’s top financial centre and has pulled away from its European rivals, according to research by an influential think tank.
The Z/Yen Global Financial Centres index, which ranks 121 locations, showed London remained in second place with a rating of 750 points, up three points from its previous report in March and closing the trans-Atlantic gap.
New York scored 764 points to retain the top spot. However, its rating fell by one point over the six months since March. The Big Apple has topped the biannual ranking ever since it overtook London in September 2018. However, the gap between the two financial hubs has narrowed by 15 points over the last 18 months.
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