Business · Companies · 6 hrs ago
CPPIB to cut jobs and merge struggling active equities division
Canada Pension Plan Investment Board will lay off dozens from its active equities division.
The division will merge with CPPIB’s capital markets and factor investing unit, which Heather Tobin will lead.
CPPIB manages $864-billion for more than 22 million Canadians who contribute to the Canada Pension Plan.
Its active equities team invests in publicly traded and soon-to-be-listed companies, using research to make concentrated bets on individual stocks.
The division lost $3.5-billion in fiscal 2026 and $6-billion over five years.
Its longer-term results have also lagged: it made $1.9-billion over 10 years, while the overall fund returned an average of 8.8 per cent a year.
The merger follows years of weak results, including losses linked to changes in China’s regulations and underperforming stock positions; some affected employees may find jobs elsewhere, but CPPIB declined to comment.
Canada Pension Plan Investment Board is laying off dozens of employees in its struggling active equities division and merging it with another unit.
The combined division will join CPPIB’s capital markets and factor investing division, led by Heather Tobin.
The active equities strategy lost $3.5-billion in the fiscal year ended March 31, 2026, and $6-billion over five years.
A smaller number of employees will stay in the division, and some affected staff may find roles elsewhere at CPPIB.
Frank Ieraci, who led active equities since 2020, is among those departing.
- Who
- Canada Pension Plan Investment Board. Dozens of employees in its active equities division are affected.
- What
- CPPIB is cutting jobs and merging active equities with its capital markets and factor investing division.
- When
- The decision was reported on November 10, 2026. The sources do not state when the changes will take effect.
- Where
- CPPIB, whose office is in Toronto. The division’s location is not stated.
- Why
- The active equities strategy has underperformed for several years, including losses of $3.5-billion in the 2026 fiscal year and $6-billion over five years.
This story does not have two clearly opposing sides.
Frank Ieraci began leading the active equities division.
Regulatory changes in China contributed to losses and to CPPIB’s decision to reduce its exposure to the country.
The active equities strategy recorded a $3.5-billion loss in the fiscal year that ended on this date.
CPPIB’s fiscal first quarter ended, with $36.8-billion of assets under management in the active equities division.
The Globe and Mail reported that CPPIB would cut jobs and merge the division.
- Assets managed by CPPIB
- $864-billion
- People whose contributions support CPPIB
- More than 22 million working and retired Canadians
- Active equities loss
- $3.5-billion in the fiscal year ended March 31, 2026
- Active equities five-year loss
- $6-billion
- Active equities assets under management
- $36.8-billion as of June 30, 2026
- Leader of the combined unit
- Heather Tobin
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