article-aa

The Caisse de dépôt et placement du Québec is providing subordinated private debt for Ontario-based Meridian Credit Union. (The Logic)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: The Caisse’s investment comes one week after the Ontario Teachers’ Pension Plan backed Duo Bank-purchased Fairstone Financial, a consumer finance firm with 237 branches across Canada and $3 billion in assets. Meridian has 92 retail branches, increased its assets by 17 per cent to almost $24 billion, and is looking to continue that rapid expansion. The Caisse’s investment comes one month after Charles Emond, a 20-year Scotiabank veteran, was named CEO of the pension fund. Canada’s Big Six banks are increasingly investing in technology as they face pressure from both large tech firms, small tech startups and credit unions like Meridian, which launched its own digital bank in April 2019—all eating into their market share. But the growth of credit unions isn’t inherently an issue for large banks: it was actually CIBC that introduced the Caisse and Meridian and helped make the deal happen. That doesn’t mean big banks aren’t facing pressure, though. Today, for example, CIBC announced a five per cent workforce cut.

article-aa

The world’s largest asset manager voted against directors at six Calgary-based energy companies this 2020 proxy season, including Paramount Resources, Athabasca Oil and Ovintiv, which has moved its corporate headquarters to Denver. It also supported a climate-related shareholder proposal for Quebec City-based insurance company iA Financial, and voted against directors at Toronto-based Frontera Energy. (The Logic)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: BlackRock voted against 45 other companies in its portfolio and put another 191 firms “on watch” for “making insufficient progress integrating climate risk into their business models or disclosures,” according to a report released Tuesday. “These are the companies that face the most material financial risks in the transition to a low-carbon economy and, as a result, present the greatest risks to our clients’ investments,” said BlackRock spokesperson Curtis Chou in an email to The Logic. The voting record is the company’s most tangible follow-through to date on its January commitment to prioritize climate change in its investment strategy after its own shareholders pressured the US$6.8-trillion firm to mitigate its impact on climate change. Following BlackRock’s January letter, several institutional investors in Canada told The Logic they too planned to take further action on climate change.