RE:Canada Pension Plan Investment Board takes stake in Canadian Bing tranlation and link below; Posted on 20 Feb 2019 at 08h48 | Updated at 08h48
PSP raises its putting in the pot
The Investment Board of Public sector pension plans, PSP, has increased by 100 million its putting into pot production.
PHOTO RON WARD, ARCHIVES Canadian Press
RICHARD DUFOUR
La Presse
One of the largest fund managers for pension funds in the country increases its putting in the pot. The public Sector Pension Investment Board (PSP) now holds shares of at least four major Canadian cannabis producers, an investment worth nearly a hundred million dollars.
Ottawa's institutional investor, whose principal business office is in Montreal, took a first interest in Aurora cannabis in the last quarter of 2018. Documents filed with the Securities & Exchange Commission in the last few days reveal that PSP purchased 2.6 million of Aurora cannabis shares during the months of October, November and December.
PSP has also recently taken a first stake in Aphria (553 800 shares) and in Cronos (431 900 shares). PSP also has 555 100 shares of Canopy Growth. Participation in Canopy was taken in the past spring.
In each of these cases, PSP is currently one of the 20 largest shareholders.
In addition to its direct shareholdings in pot growers, PSP also holds 27 636 shares of Constellation Brands (which owns about 35% Canopy), nearly 100 000 shares of Altria (which announced in December the acquisition of an interest of 45% in Cronos) and approximately 10 000 shares of Molson Coors (which has a joint venture with Hexo, a Gatineau cannabis producer). By way of comparison, the Caisse de depot et placement du Qubec has no known direct investment in pot producers.
The Caisse has small holdings in the constellation Brands Beer and wine producer (US $1 million), the cigarette maker Altria (US $22 million), and the Molson Coors Brewer (6 million US $).
The cannabis sector has a very good start to the year on the stock market. Aurora's action has risen by almost 40% since January 1, while Canopy's share has enjoyed more than 70%. The title of Aphria has earned more than 60% until now in 2019 while the value of Cronos has doubled this year.
In particular, PSP invests funds for the public service pension plans, the Canadian Armed Forces and the Royal Canadian Mounted Police.
PSP management did not want to comment on its investment decisions. PSP's total assets under management amount to approximately 160 billion million. Link to French article