In a keynote speech at the Canadian Chamber of Commerce’s annual general meeting, CPP Investments head John Graham said in prepared remarks that reversing globalization presents both buying opportunities and risks for the country’s largest pension fund, as it tries to manage long-term returns in a rapidly changing economy. (The Logic)

Talking point: Graham, who took the helm at CPP in early 2021, said volatile global markets create “onshore, local investment opportunities” in sectors like semiconductors, battery technology and pharmaceutical ingredients. More local investments would mark a shift for CPP, which—along with other Canadian pensions—has been decreasing its relative exposure to Canadian assets in recent decades. Graham noted that the firm is assessing China’s growth, which has been slower than expected. The Logic reported this week that CPP’s portfolio of U.S.-listed Chinese stocks dropped about 67 per cent between July 2021 and July 2022. At the same time, Graham said broad equities sales present buying opportunities. “This is the most important investment decision an institutional investor can make—to not lose conviction in your long-term beliefs during a market sell-off,” he said.