Canadian Pension Bucks Enviros, Invests $450 Million In Oil, Gas

fracking rigCanada’s largest retirement pension announced Wednesday it will invest $450 million in a company heavily invested in oil and gas interests, even as environmentalists continue to push fossil fuel divestment.

The Canada Pension Plan Investment Board (CPPIB) said the investment in LongPoint Minerals will be merited out over two to three years, which will allow the board to own most of the company.

“In owning royalty interests, we are able to participate in production revenues without the burden of associated capital or operating costs,” Adam Vigna, managing director and head of principal credit investments at CPPIB, told reporters.

A new study released in early June found the frictional costs associated with fossil fuel divestment could cost an endowment fund as much as $7.4 billion in value over a 20-year period.

The research was conducted by Arizona State University finance professor Hendrik Bessembinder, who thumbed through data from 30 universities of varying endowment sizes across the U.S. and found transactional costs are determined by the size of the endowment.

Bessembinder calculated and categorized data from small, medium and large institutions and estimated the endowments would lose between 2 and 12 percent of their value due to divestment over a 20-year period.

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    The question is are the companies the pension plans invest in legally entitled to sell their product and services ? Oil and natural gas for example . Obviously yes although Hillary pledged “to stop fossil fuel ” if elected but so far she hasn’t said she pledges to make them illegal . So what is the having pension fund management who are barred from doing their job based on the demands of hypocrites . They are under contract to produce returns to keep the pension fund solvent . When boards start overriding the ability of the Pension Fund Management they are breaking the contract and the Pension Fund Managers are no longer accountable .
    When Pension Fund Management services are tendered to the market place or performance is benchmarked those funds with their hands tied are not competing on a level playing field which will undermine their business .

    Meanwhile the ecovangilists have moved on to burger join jobs and taxi’s never to be held accountable .

    Fossil fuel companies today and what would be the next legally sold products and services to be attacked . Car companies ,
    Utilities , Boiler manufactures , Plastic manufactures , Chemical manufactures ?

    Most people don’t have the luxury of a nice gold plated government backed pension plan . Their pension plans ,if they even have one , need to earn a reasonable return or the companies can’t afford them .

    Kill the equity markets and you kill the economy . Now at least that is a consistent Democrat objective even backed up by some of the biggest unions in the USA .

    Unbelievable what is going on .

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