Trainers Choice Leads the Way in Sports Medicine Innovation with Launch of GeoCell -- A Natural, High-Performance Material
BARRIE, ON, June 5, 2025 /CNW/ - Trainers Choice, a trusted Canadian family-owned and operated sports medicine brand with over 35 years clinical expertise and product innovation, proudly announces the launch of GeoCell, its new eco-friendly brace and support line into Canada's leading pharmacy retailer, Shoppers Drug Mart. This initiative sets a new industry standard for sustainability and performance in sports medicine innovation.
The GeoCell product line was created by industry veteran Rick Schaly, founder of a chain of award-winning rehabilitation clinics and the Trainers Choice brand. His vision combines clinical expertise with innovative solutions to enhance recovery and performance. Trainer's Choice products reflect a unique and synergistic collaboration among healthcare professionals including physiotherapists, chiropractors, athletic therapists, massage therapists, doctors, and orthopaedic surgeons.
Trainers Choice's exclusive range of products have been meticulously designed and rigorously tested in these clinics with one primary goal in mind: to alleviate pain and discomfort so that patients are empowered to resume their active lives and pursue their passions.
The GeoCell line of products uses a sustainable, plant-based material that replaces traditional neoprene without compromising on performance. With the launch of GeoCell, Trainers Choice becomes first sports medicine brace and support company to use GeoCell material in their products.
What is GeoCell?
Derived from Hevea trees with a 30-year rubber production lifespan, GeoCell is sourced from FSC and PEFC certified plantations, ensuring it meets the highest standards in responsible forest management. It is made using recycled laminate fabrics and water- based adhesives, and is manufactured without the use of harmful chemicals.
Engineered with supportive stretch and stabilizing properties for injury recovery, GeoCell keeps muscles protected and comfortable through every stage of movement and sustainability.
"To continue to improve our environmental impact we are moving toward sustainable materials," says Rick Schaly. "We want to improve our customers' health and well-being, while contributing to the health of the planet one step at a time. These braces and supports were designed with performance, functionality, and sustainability as the focus."
Beyond the commitment to quality, Trainers Choice utilizes sustainable design practices, natural-based premium materials and cutting-edge technologies like kinetic paneling to help patients achieve unparalleled support and healing.
Trainers Choice is now positioning itself for growth in new markets—bridging the gap between functional medical products and responsible design. In Canada, Shoppers Drug Mart will be the first national retailer to feature the GeoCell brace and support line.
About Trainers Choice:
Trainers Choice is a clinic-based Canadian company that has been in business for over 30 years. Its Canadian Sports Medicine Development Team includes Orthopaedic Surgeons, Primary Care Sports Medicine Physicians, Physiotherapists, Chiropractors, and Athletic Therapists, providing leading edge treatment solutions to help people recover from their injuries. This knowledge and patient experience is leveraged to design and develop innovative Brace and Support products that are functional,
comfortable, and exceed expectations. The Trainers Choice brand can be found at Shoppers Drug Mart, Loblaw Companies Ltd, Save-On, PharmaSave, Metro Ontario,
and McKesson owned independent banners. In addition, Trainers Choice is launching in the USA in July 2025 at a southeastern regional grocery chain and plans to expand the GeoCell line into additional Canadian retailers.
Learn more about Trainers Choice at www.trainerschoice.ca.
SOURCE Trainer's Choice
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AIMIA REPORTS SECOND QUARTER 2025 RESULTS; RE-ITERATES AEBITDA GUIDANCE AND LOWERS HOLDCO COST TARGET FOR THE YEAR
TORONTO, Aug. 14, 2025 /CNW/ - Aimia Inc, (TSX: AIM) ("Aimia" or the "Company"), today reported its financial results for the three and six months ended June 30, 2025. All amounts are in Canadian currency unless otherwise noted. SENIOR LEADERSHIP COMMENTARY "Our performance in Q2 reflected the progress we made against the three-step strategy we launched earlier this year to become a permanent capital vehicle," said Rhys Summerton, Aimia's Executive Chairman. "We reduced HoldCo costs to $2 million, allocated $8.2 million towards share buybacks, and took steps to determine the market value of our core holdings. This progress was made while we sustained the momentum of our core holdings and generated improvements to a number of key financial metrics in spite of challenging macro-economic conditions." Mr. Summerton added, "With an increased focus on value creation, we expect our performance over time will be better measured by improvements to our balance sheet rather than traditional quarterly reporting metrics. During the transition, we anticipate supplementing our financial reporting with increased disclosure on our net asset value." "Despite the emergence of economic uncertainty due to the latest round of U.S. tariffs against markets that Bozzetto and Cortland operate in or sell into, the performance of our core holdings through the mid-point of the year puts them on track to meeting our target for 2025 for Adjusted EBITDA on a combined basis," said Steven Leonard, Aimia's President and Chief Financial Officer. "As a result, we are re-iterating our guidance for Adjusted EBITDA, albeit at the lower end of the range." Mr. Leonard added, "Given our progress at lowering HoldCo costs to date, we are lowering our cost guidance and expect costs to be $9 million for the year exclusive of one-time expenses, down from $11 million initially forecast." AIMIA'S Q2 2025 HIGHLIGHTS Reported consolidated revenue of $128.7 million, up 5.1% from $122.4 million generated in Q2 2024. The growth was driven by a number of developments including the positive impact of foreign currency fluctuations relative to the Canadian dollar, higher contributions from Cortland due to stronger customer demand for its rope and netting products, and improved results from Bozzetto's Dispersion Solutions sector. On a constant currency basis, consolidated revenue was flat when compared to last year. Generated consolidated Adjusted EBITDA of $19.7 million, up 60% from $12.3 million reported in Q2 2024. The $7.4 million improvement was mainly driven by cost-cutting initiatives at the Holdings segment totaling $1.4 million and the positive impact of currency fluctuation of $1 million. In Q2 2024 Aimia incurred expenses of $2.9 million related to shareholder activism and $1.2 million of advisory fees for Cortland. Generated cash flow from operating activities of $9.4 million, a positive turnaround of $22.6 million from Q2 2024, which included a number of one-time expenses. Reported a consolidated net loss of $6.1 million or $0.08 per common share. Ended Q2 2025 with cash and cash equivalents of $70.5 million. Received overwhelming shareholder approval at its annual general meeting for its slate of directors and strategic plan aimed at reducing holding company costs, reducing the discount of its share price to the intrinsic value of its net assets, and efficiently utilizing its loss-carry forwards to create shareholder value. Renewed a normal course issuer bid to purchase for cancellation up to 5.9 million of its common shares, representing 10% of its public float as at May 30, 2025. As at August 13, Aimia had purchased for cancellation 1.3 million shares or 21.4% of allowable purchases. Reached settlement with the Canada Revenue Agency for a tax dispute relating to a tax audit of Aimia's former subsidiary, Aeroplan Inc. Aimia anticipates a refund of $27 million pending final processing of the settlement agreement. In addition, Aimia will seek a refund from Revenu Québec for the remaining $6 million portion related to the same tax audit. HIGHLIGHTS SUBSEQUENT TO QUARTER END Consistent with its three-step strategy previously disclosed, Aimia initiated efforts to determine the market value of its core holdings with the support of financial advisors. The Company will provide updates as material developments unfold. CONSOLIDATED FINANCIAL HIGHLIGHTS Aimia 3-Months Ended June 30 6-Months Ended June 30 (in $millions except for margin and per share data) 2025 2024 Change 2025 2024 Change Revenue 128.7 122.4 5.1 % 258.5 244.5 5.7 % Gross Profit 34.9 31.5 10.8 % 70.5 65.8 7.1 % Gross Margin 27.1 % 25.7 % 1.4 pp 27.3 % 26.9 % 0.4 pp Selling, general and administrative expenses (25.9) (38.5) 32.7 % (51.4) (73.5) 30.1 % Operating Income (loss) 9.0 (7.0) NM 19.1 (7.7) NM Adjusted EBITDA1 19.7 12.3 60.2 % 39.4 19.0 107.4 % Net earnings (loss) (6.1) (5.6) (8.9) % (5.7) (10.1) 43.6 % Earnings (loss) per share (0.08) (0.10) 20.0 % 0.48 (0.19) NM _____________________________ 1 Adjusted EBITDA is a non-GAAP measure. This press release should be read in conjunction with Aimia's consolidated financial statements and management discussions and analysis (MD&A) for the three and six-month periods ended June 30, 2025, which can be accessed from SEDAR+ and Balance Sheet and Liquidity As at June 30, 2025, Aimia had $70.5 million in cash and cash equivalents. As at March 31, 2025, Aimia had $94.7 million of cash and cash equivalents. The quarter over quarter decline in Aimia's liquidity was attributable to a number of developments in Q2 2025. The most notable being $9.4 million of senior debt principal repayments made by Bozzetto, of which $6.3 million were voluntary, $8.2 million of payments for the buyback of common shares through the Corporation's normal course issuer bid, $6.4 million of interest payments related to the 2030 Notes, $5.2 million of Bozzetto interest payments on its credit facilities, and $3.7 million of investments in property, plant and equipment. The decline was partially offset by $9.4 million of cash flow from operating activities in Q2 2025 and a $2.7 million loan repayment from Kognitiv. Of Aimia's cash and cash equivalents held at June 30, 2025, $36.9 million was held in Bozzetto, $10.2 million in Cortland International, and $23.4 million in the Holdings segment. As at August 13, 2025, Aimia had not yet received the $27 million refund from its tax audit settlement with the Canada Revenue Agency. Available Tax Losses As at June 30, 2025, Aimia had $1,085.9 million of tax losses available for carry forward that may be used to reduce taxable income in future years. The total available for carry forward is comprised of $510.3 million of operating tax losses and $575.6 million of capital tax losses. Dividends Aimia paid $0.7 million in dividends for the second quarter ended June 30, 2025, on its three series of outstanding preferred shares. In the same period of 2024, Aimia paid $3.8 million in dividends. The year-over-year decline reflects the successful completion of the Corporation's substantial issuer bid that resulted in the purchase for cancellation 7,889,931 Preferred Shares in consideration for the 9.75% senior unsecured notes. Aimia's Board of Directors declared quarterly dividends of $0.392563 per Series 1 preferred share, $0.485813 per Series 3 preferred share and $0.431266 per Series 4 preferred share, in each case payable on September 30, 2025, to shareholders of record on September 16, 2025. Dividends paid by Aimia to Canadian residents on its preferred shares are "eligible dividends" for the purpose of the Income Tax Act (Canada) and any similar applicable provincial legislation. SEGMENT RESULTS Aimia is comprised of three segments: Bozzetto, Cortland International, and Holdings. Financial highlights for each segment for the three-month and six-month periods ended June 30, 2025 follow. Bozzetto Aimia owns a 94.1% equity stake in Bozzetto, one of the world's leading providers of sustainable specialty chemicals with applications mainly in the textile, home and personal care, geothermal, construction, and agrochemical markets. Bozzetto's management team owns the remaining 5.9%. Subsequent to June 30, 2025, the Corporation repurchased 0.084% of equity from a member of Bozzetto's management team, increasing Aimia's total equity stake to 94.18%. Bozzetto 3-Months Ended June 30 6-Months Ended June 30 (in $ millions except for margin data) 2025 2024 Change 2025 2024 Change Revenue 90.9 87.4 4.0 % 180.0 175.5 2.6 % Gross Profit 26.3 24.6 6.9 % 52.4 51.1 2.5 % Gross Margin 28.9 % 28.1 % 0.8 pp 29.1 % 29.1 % - Selling, general and administrative expenses (15.5) (20.9) 25.8 % (29.5) (38.0) 22.4 % Operating Income (loss) 10.8 3.7 191.9 % 22.9 13.1 74.8 % Earnings (loss) before income taxes 7.4 (0.3) NM 14.9 5.3 181.1 % Adjusted EBITDA2 16.9 15.1 11.9 % 33.9 30.6 10.8 % Adjusted EBITDA margin 18.6 % 17.3 % 1.3 pp 18.8 % 17.4 % 1.4 pp ______________________________ 2 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Bozzetto generated revenue of $90.9 million in the second quarter of 2025, up 4.0% from $87.4 million generated in the comparable period for 2024. On a constant currency basis, Bozzetto's revenue decreased by $2.1 million or 2.4%. The variance is due to lower volume sold by Bozzetto's Textile Solutions sector as a result of weaker demand caused by the uncertainty of U.S. tariffs. The decline was partially offset by improved pricing and product mix for Bozzetto's Dispersion Solutions sector, which primarily serves plasterboard, agrochemical, and concrete markets outside of the U.S. Adjusted EBITDA for Q2 2025 was $16.9 million, which represents a margin of 18.6%. These compare to $15.1 million and 17.3%, respectively, for Q2 2024. The year-over-year improvements were principally driven by a favourable currency impact of $1 million. On a constant currency basis, the growth was due to lower SG&A expenses of $0.9 million, offset by lower gross profit of $0.5 million. Bozzetto generated earnings before taxes in Q2 2025 of $7.4 million, up from a loss of $0.3 million in Q2 2024. The turnaround reflects the reduction in SG&A expenses and Bozzetto management's adaptability in the face of macroeconomic and geopolitical challenges. Cortland International Aimia owns a 100% equity stake in Cortland International, the rebranded combination of Tufropes and Cortland Industrial, a global leader in the manufacturing of high-performance synthetic fiber ropes and netting solutions for maritime and other industrial customers. Cortland International 3-Months ended June 30 6-Months ended June 30 (in millions of dollars except for margin data) 2025 2024 Change 2025 2024 Change Revenue 37.8 35.0 8.0 % 78.5 69.0 13.8 % Gross Profit 8.6 6.9 24.6 % 18.1 14.7 23.1 % Gross Margin 22.8 % 19.7 % 3.1 pp 23.1 % 21.3 % 1.8 pp Selling, general and administrative expenses (7.9) (9.6) 17.7 % (16.0) (16.6) 3.6 % Operating Income (loss) 0.7 (2.7) 125.9 % 2.1 (1.9) 210.5 % Earnings (loss) before taxes (1.7) (1.5) (13.3) % (2.7) (3.0) 10.0 % Adjusted EBITDA3 4.9 3.6 36.1 % 10.3 7.6 35.5 % Adjusted EBITDA Margin 13.0 % 10.3 % 2.7 pp 13.1 % 11.0 % 2.1 pp ______________________________ 3 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Cortland generated revenue of $37.8 million for Q2 2025, up 8.0% from $35 million generated in Q2 2024. On a constant currency basis, Cortland's revenue grew $2.4 million or 6.9%. Cortland's performance in Q2 2025 was largely driven by improved market conditions and improved product mix, including higher volumes of high-performance rope sales, despite some prevailing headwinds in the market due to uncertainties related to U.S. tariffs. Adjusted EBITDA for Q2 2025 was $4.9 million, representing a margin of 13.0%. These compare to $3.6 million and 10.3%, respectively, for Q2 2024. The year-over-year improvements were largely driven by higher gross profit. In Q2 2024, Cortland incurred $1.2 million of professional and advisory fees related to business transformation and operational improvement initiatives aimed at building Cortland's market share, strengthening its sales force, and launching new products. Excluding these fees from the prior period, Adjusted EBITDA would be broadly in line with last year. Holdings Segment The Holdings Segment includes Aimia's investments in Clear Media Limited and Kognitiv as well as minority investments in public company securities and limited partnerships. The results of the Holdings Segment include corporate operating costs, including costs related to public company disclosure and board, executive leadership, legal, finance and administration. Holdings 3-months ended June 30 6-months ended June 30 (in millions of dollars) 2025 2024 Change 2025 2024 Change Selling, general and administrative expenses (2.5) (8.0) 68.8 % (5.9) (18.9) 68.8 % Earnings (loss) before taxes (9.4) (1.0) NM (13.0) (6.8) (91.2) % Adjusted EBITDA4 (2.1) (6.4) 67.2 % (4.8) (19.2) 75.0 % _____________________________ 4 Adjusted EBITDA is a non-GAAP measure. SG&A expenses for the Holdings segment in Q2 2025 were $2.5 million, down from $8.0 million incurred in Q2 2024. In Q2 2024 Aimia incurred $2.9 million of shareholder activism expenses and $0.8 million of expenses related to the termination of the Paladin agreements. SG&A expenses for the six-months ended June 30, 2024 also included $1.6 million in termination expenses related to the departure of Aimia's former CEO and its former President. Adjusted EBITDA in Q2 2025 improved by $4.3 million due to absence of activism expenses of $2.9 million incurred in the prior period and a $1.4 million reduction in professional advisory fees and compensation and benefit expenses. Aimia anticipates that costs at the Holdings Segment in 2025 will be $9 million. Outlook and Guidance Aimia's performance through the mid-point of the year tracks favourably against its targets announced for 2025. As a result, the Company has re-iterated its guidance for Adjusted EBITDA for its core holdings on a combined basis for 2025, albeit at the lower end of the range. Through June 30, 2025, Aimia's core holdings generated $44.2 million on a combined basis. Aimia will continue to closely monitor global trade developments and their impact on the performance of its core holdings. In light of the Company's progress at reducing HoldCo costs, Aimia has lowered its guidance for Holding Company costs for 2025 from below $11 million to $9 million. Through June 30, 2025 Holding Company costs were $4.5 million, net of one-time related professional fees associated with the settlement of the tax audit. The guidance is exclusive of one-time costs. (in millions of dollars) Previous Guidance for 2025 Year to Date Results New Guidancefor 2025 Adjusted EBITDA at Bozzetto and Cortland on a Combined Basis5 $88 - $95 $44.2 $88 - $95 Holding Company Costs6 Below $11 $4.5 $9.0 ______________________________ 5 Adjusted EBITDA is a non-GAAP measure. 6 Holding Company costs are a non-GAAP measure. Quarterly Conference Call and Audio Webcast Information Aimia will host a conference call to discuss its second quarter 2025 financial results at 8:30 am ET on August 14. The call will be webcast at the following URL link Interested parties can listen to conference call by dialing 1 888 699 1199 or 1 416 945 7677 (internationally). A slide presentation intended for simultaneous viewing with the conference call and an archived audio webcast will be available for 90 days following the original broadcast available at: About Aimia Aimia Inc. (TSX: AIM) is a diversified company focused on enhancing the value of its two core global businesses, Bozzetto, a sustainable specialty chemicals company, and Cortland International, a rope and netting solutions company. Headquartered in Toronto, Aimia's priorities include reducing its holding company costs, reducing the discount of its share price to the intrinsic value of its net assets and efficiently utilizing its loss carry-forwards to create shareholder value. For more information about Aimia, visit Non-GAAP Financial Measures and Reconciliation to Comparable GAAP Measures "GAAP" means Canadian Generally Accepted Accounting Principles (which are in accordance with the International Financial Reporting Standards). Adjusted EBITDA Adjusted EBITDA is not a measurement based on GAAP, is not considered an alternative to net earnings in measuring profitability, does not have a standardized meaning and is not directly comparable to similar measures used by other issuers. Adjusted EBITDA should not be used as an exclusive measure of cash flow because it does not account for the impact of working capital growth, capital expenditures, debt repayments and other sources and uses of cash, which are disclosed in the statements of cash flows. A reconciliation to operating income (loss) is provided. Adjusted EBITDA is used by management to evaluate the performance of its Bozzetto, Cortland International and Holdings segments. Management believes Adjusted EBITDA assists investors in comparing Aimia's performance on a consistent basis excluding depreciation and amortization, impairment charges related to non-financial assets and share-based compensation, which are non-cash in nature and can vary significantly depending on accounting methods as well as non-operating factors such as historical cost. Aimia's management believes that the exclusion of business acquisition and/or disposal related expenses assists investors by excluding expenses that are not representative of the run-rate cost structure of its operations. Adjusted EBITDA is operating income (loss) adjusted to exclude depreciation, amortization, impairment charges related to non-financial assets, cost of sales expense related to inventory fair value step up resulting from purchase price allocation, share-based compensation, expenses related to Cortland International's long-term management incentive plan, gain/loss from the disposal of manufacturing property and land, costs related to the termination of the Paladin agreements, as well as transaction costs related to business acquisitions. For a reconciliation of Adjusted EBITDA to operating income (loss), please refer to the tables below. Bozzetto Three Months Ended June 30, Six Months Ended June 30, (in millions of Canadian dollars) 2025 2024 2025 2024 Reconciliation of Adjusted EBITDAOperating income (loss) 10.83.722.913.1 Depreciation and amortization 6.15.612.111.0 Cost of sales expense related to inventory fair value step up resulting from purchase price allocation —0.7—0.7 Cost related to the termination of Paladin agreements —4.9—4.9 Transaction related (income) costs —0.2(1.1)0.9 Adjusted EBITDA 16.915.133.930.6 Adjusted EBITDA margin 18.6 %17.3 %18.8 %17.4 % Cortland International Three Months Ended June 30, Six Months Ended June 30, (in millions of Canadian dollars) 2025 2024 2025 2024 Reconciliation of Adjusted EBITDA Operating income (loss) 0.7(2.7)2.1(1.9)Depreciation and amortization 3.12.96.15.9Cost related to the termination of Paladin agreements —1.5—1.5Long-term management incentive plan 1.1—2.1—Transaction and transition related costs —1.9—2.1 Adjusted EBITDA 4.93.610.37.6Adjusted EBITDA margin 13.0 %10.3 %13.1 %11.0 % Holdings Three Months Ended June 30, Six Months Ended June 30, (in millions of Canadian dollars) 2025 2024 2025 2024 Reconciliation of Adjusted EBITDA Operating income (loss) (2.5)(8.0)(5.9)(18.9)Share-based compensation expense (reversal) 0.40.81.1(1.1)Costs related to the termination of Paladin agreements —0.8—0.8Adjusted EBITDA (2.1)(6.4)(4.8)(19.2)For a reconciliation of Holdco costs to the Holdings segment's Selling, general and administrative expenses, please refer to the table below. Holdings Three Months Ended June 30, Six Months Ended June 30, (in millions of Canadian dollars) 2025 2025 Selling, general and administrative expenses (2.5)(5.9)Share-based compensation expense (reversal) 0.41.1Legal fees incurred in relation with CRA settlement 0.10.3Holdco Costs (2.0)(4.5)Forward-Looking Statements This press release contains statements that constitute "forward-looking information" within the meaning of Canadian securities laws ("forward-ling statements"), which are based upon Aimia's current expectations, estimates, projections, assumptions and beliefs. All information that is not clearly historical in nature may constitute forward-looking statements. Forward-looking statements are typically identified by the use of terms such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would" and "should", and similar terms and phrases, including references to assumptions. Forward-looking statements in this press release include, but are not limited to, Aimia's future growth and value creation; Aimia's reduction in holding company costs; monetization of Aimia's core or non-core assets; Aimia's possibility to make controlling stake investments and the use of Aimia's tax loss carry forwards; the duration of the transition period; Aimia's increased disclosure on net asset value; the impact of tariffs on Aimia's outlook and guidance; Aimia's refund of $27 million by the Canada Revenue Agency pending final processing of the settlement agreement and Aimia's guidance for 2025; and Aimia's refund from Revenu Québec. Forward-looking statements, by their nature, are based on assumptions and are subject to known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the forward-looking statement will not occur. The forward-looking statements in this press release speak only as of the date hereof and reflect several material factors, expectations and assumptions. Undue reliance should not be placed on any predictions or forward-looking statements as these may be affected by, among other things, changing external events and general uncertainties of the business. A discussion of the material risks applicable to the Company can be found in Aimia's current Management's Discussion and Analysis and Annual Information Form, each of which have been or will be filed on SEDAR+ and can be accessed at Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aimia disclaims any intention and assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. SOURCE Aimia Inc. 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CPP Investments Net Assets Total $731.7 Billion at First Quarter Fiscal 2026
All figures in Canadian dollars unless otherwise noted Highlights: Net assets increase by $17.3 billion 10-year net return of 8.4% Added $500 billion in cumulative net income since inception TORONTO, Aug. 14, 2025 /CNW/ - Canada Pension Plan Investment Board (CPP Investments) ended its first quarter of fiscal 2026 on June 30, 2025, with net assets of $731.7 billion, compared to $714.4 billion at the end of the previous quarter. The $17.3 billion increase in net assets for the quarter consisted of $7.5 billion in net income and $9.8 billion in net transfers from the Canada Pension Plan (CPP). CPP Investments routinely receives more CPP contributions than required to pay benefits during the first part of the calendar year, partially offset by benefit payments exceeding contributions in the final months of the year. The Fund, composed of the base CPP and additional CPP accounts, generated a 10-year annualized net return of 8.4%. For the quarter, the Fund's net return was 1.0%. Since CPP Investments first started investing the Fund in 1999, and including the first quarter of fiscal 2026, it has contributed $499.6 billion in cumulative net income. "Shifting trade dynamics and broader geopolitical uncertainty fueled renewed volatility in global markets during the first quarter of our fiscal year," said John Graham, President & CEO. "Through these events, the Fund remained resilient, supported by our diversified investment strategy, including broad geographic exposure that helps offset shifts in the employment, wage and demographic trends that determine CPP contributions. We remain focused on creating long-term value for the benefit of CPP contributors and beneficiaries." The Fund delivered positive results in the first quarter, despite considerable market volatility. While markets declined early in the period, public equities rebounded by quarter end, contributing to overall Fund performance. Energy assets and strong results from our external manager programs also contributed positively to returns. These gains were largely offset by the weakening of the U.S. dollar relative to the Canadian dollar amid tariff-related uncertainty. While foreign exchange fluctuations may impact returns in the short term, maintaining a well-diversified global currency composition helps to mitigate overall return volatility over longer time horizons. Performance of the Base and Additional CPP Accounts The base CPP account ended its first quarter of fiscal 2026 on June 30, 2025, with net assets of $668.0 billion, compared to $655.8 billion at the end of the previous quarter. The $12.2 billion increase in net assets consisted of $7.3 billion in net income and $4.9 billion in net transfers from the base CPP. The base CPP account's net return for the quarter was 1.1% and the 10-year annualized net return was 8.5%. The additional CPP account ended its first quarter of fiscal 2026 on June 30, 2025, with net assets of $63.7 billion, compared to $58.6 billion at the end of the previous quarter. The $5.1 billion increase in assets consisted of $0.2 billion in net income and $4.9 billion in net transfers from the additional CPP. The additional CPP account's net return for the quarter was 0.2% and the annualized net return since inception was 5.9%. The additional CPP was designed with a different legislative funding profile and contribution rate compared to the base CPP. Given the differences in its design, the additional CPP has had a different market risk target and investment profile since its inception in 2019. As a result of these differences, we expect the performance of the additional CPP to generally differ from that of the base CPP. Furthermore, due to the differences in its net contribution profile, the additional CPP account's assets are also expected to grow at a much faster rate than those in the base CPP account. CPP Investments Net Nominal Returns1 (For the period ended June 30, 2025) Base CPP Five-Year 8.1 % 10-Year 8.5 % Additional CPP Five-Year 4.7 % Since Inception 5.9 %1 After CPP Investments expenses. Long-Term Financial Sustainability Every three years, the Office of the Chief Actuary of Canada, an independent federal body that provides checks and balances on the future costs of the CPP, evaluates the financial sustainability of the CPP over a long period. In the most recent triennial review published in December 2022, the Chief Actuary reaffirmed that, as at December 31, 2021, both the base and additional CPP continue to be sustainable over the long term at the legislated contribution rates. The Chief Actuary's projections are based on the assumption that, over the 75 years following 2021, the base CPP account will earn an average annual rate of return of 3.69% above the rate of Canadian consumer price inflation. The corresponding assumption is that the additional CPP account will earn an average annual real rate of return of 3.27%. CPP Investments Net Real Returns1,2 (For the period ended June 30, 2025) Base CPP Five-Year 4.3 % 10-Year 5.7 % Additional CPP Five-Year 0.9 % Since Inception 2.5 %1 After CPP Investments expenses.2 The real return is the return after the impact of inflation, defined as the Canadian Consumer Price Index, is taken into account. CPP Investments continues to build a portfolio designed to achieve a maximum rate of return without undue risk of loss, while considering the factors that may affect the funding of the CPP and its ability to meet its financial obligations on any given day. The CPP is designed to serve today's contributors and beneficiaries while looking ahead to future decades and across multiple generations. Accordingly, long-term results are a more appropriate measure of CPP Investments' performance and plan sustainability. Operational Highlights Corporate developments Recognized by the 2025 GlobalCapital Bond Awards in the Sovereign, Supranational and Agency (SSA) category, winning the award for Most Impressive SSA Issuer in Australian dollars. The awards celebrate excellence across the global bond markets and the winners were selected by market participants. CPP Investments Insights Institute contributed perspectives on two significant themes affecting capital markets participants: Investing in a changing world explores how we and other institutional investors are responding to climate-related physical risks; and Investing in Talent, Unlocking Value: The Potential of Gen Z Women reviews how investors can unlock value by empowering Gen Z women in the workforce. First Quarter Investment Highlights Capital Markets and Factor Investing Completed eight co-investments alongside external fund managers, committing approximately C$525 million to macro-themed strategies in addition to equity trades in health care and consumer discretionary sectors. Credit Investments Invested US$100 million into a syndicated credit-linked note with Deutsche Bank, a leading global financial institution, for a diversified portfolio of corporate loans across geographic markets. Invested A$300 million (C$264 million) in an Australian commercial real estate debt strategy managed by Nuveen, a global investment manager. The strategy will focus on institutional senior and junior loans secured by prime real estate across major cities in Australia. Committed financing to support TA Associates' strategic investment in Craigs Investment Partners, a leading New Zealand-based wealth management advisory firm. Invested US$300 million into xAI's debt issuance as part of a broader capital raise to finance the construction of the company's second data centre in Memphis, Tennessee. Headquartered in the U.S., xAI develops artificial intelligence technology systems. Invested US$300 million in the partial royalty monetization of Leqvio, a cardiovascular drug for the treatment of hyperlipidemia. Invested in the loan facilities of Waste Services Group, a waste management solution provider in Australia. Completed the investment in a new wireless network infrastructure subsidiary of Rogers Communications Inc. through a Blackstone-led acquisition of a non-controlling interest in the business unit. Private Equity Invested US$50 million for an approximate 1.6% stake in Acronis alongside EQT. Acronis is a global cybersecurity, data back-up and IT operations software company. Invested €50 million for a minority stake in Applus, a Spanish global leader in testing, inspection and certification services in more than 70 countries, alongside TDR Capital. Invested A$75 million (C$66 million) for an approximate 10% stake in the take-private of SG Fleet, a leading fleet management organization in Australia and New Zealand, alongside Pacific Equity Partners. Committed US$193 million to a single-asset continuation fund managed by New Mountain Capital for Real Chemistry, a global provider of commercialization solutions to pharmaceutical and health care companies. Invested approximately €275 million in IFS, acquiring shares from EQT alongside other investors. Headquartered in Sweden, IFS is a leading global provider of cloud enterprise software and industrial AI applications. Committed A$150 million (C$135 million) to Pacific Equity Partners PE Fund VII, which focuses on upper mid-market buyout opportunities in Australia and New Zealand. Committed US$75 million to Radical Fund IV, managed by Radical Ventures, a Canadian-headquartered AI-focused venture and growth manager with offices in Toronto, San Francisco and London, bringing our total commitment to approximately US$280 million across various fundraising cycles since the initial investment in 2019. Invested US$75 million in the growth equity funding round of OpenAI, an artificial intelligence research and deployment company focused on building AI applications, hardware and infrastructure, including ChatGPT, alongside Sands Capital. Invested US$25 million in the partial recapitalization of LogicMonitor, a software-as-a-service based platform for AI-powered data centres based in the U.S., alongside PSG. Invested an additional US$20 million in the Series J funding of Databricks, a data, analytics and AI company based in the U.S., alongside Sands Capital, bringing our stake to just under 1%. We first invested in Databricks in 2021. Agreed to support Salesforce's proposed acquisition of Informatica, an AI-powered enterprise cloud data management company, in which we have been a major investor since 2015. Net proceeds from the sale of our current stake of approximately 36% are expected to be US$2.7 billion upon the completion of the transaction. Sold a diversified portfolio of 25 limited partnership fund interests in North American and European buyout funds to Ares Management Private Equity Secondaries funds and CVC Secondary Partners for net proceeds of approximately C$1.2 billion. The portfolio of interests represents various primary commitments and secondary purchases made in funds over 10 years old. Real Assets Committed up to an additional €460 million to support Nido Living, a European student housing operator, in its acquisition of Livensa Living, a student housing platform operating across Iberia. Upon closing, Nido will become one of the largest student housing operators in Europe with approximately 13,000 beds. We acquired Nido Living in 2024. Committed JPY192.5 billion (C$1.8 billion) in Japan DC Partners I LP, a data centre development partnership managed by Ares Management following its acquisition of GCP. The partnership will support the development of three large-scale campuses in Greater Tokyo to meet growing demand for scalable computing and AI solutions. Sold a net 5.81% stake in 407 Express Toll Route (ETR), a 108-km toll highway spanning the Greater Toronto Area in Canada, for net proceeds of approximately C$2.39 billion. We continue to hold a significant interest in 407 ETR. Sold our 50% interest in a portfolio of seven high-quality office properties in Western Canada to Oxford Properties for C$730 million. Our original investments were made in 2005 and 2016. Sold our stake in Encino Acquisition Partners (EAP), a leading oil and gas producer in the U.S., to EOG Resources, which acquired 100% of EAP for US$5.6 billion, inclusive of EAP's net debt. We held our 98% ownership position since 2017. Transaction Highlights Following the Quarter Entered into a definitive agreement to sell our 49.87% stake in Transportadora de Gas del Peru S.A., which operates Peru's main natural gas and natural gas liquids pipelines under a long-term concession, to vehicles managed by EIG. Our original investment was made in 2013. The transaction is subject to customary closing conditions and regulatory approvals. Expanded the Build-For-Rent joint venture with Greystar, a global leader in property management, investment management, and development, to a total equity commitment of US$1.4 billion for our 95% stake. The joint venture will develop a mix of residential properties across the U.S. including detached single-family homes, duplexes, and townhomes. Invested C$225 million in a loan to construct a hyperscale expansion to a data center in Cambridge, Ontario, Canada, funding 50% of the total construction cost, alongside Deutsche Bank. Sold our 50% stake in each of two real estate assets located in Birmingham U.K., the Bullring and Grand Central Shopping Centres, to joint-venture partner Hammerson Plc. Net proceeds from the sales were approximately C$615 million. We first invested in the Bullring in 2013 and in Grand Central in 2016. Invested approximately US$700 million for a minority position in NEOGOV, a leading provider of HR and compliance software, alongside EQT. Entered into a definitive agreement to sell our 49% stake in Island Star Mall Developers Private Limited, a real-estate investment program in India, to joint venture partner The Phoenix Mills Limited and affiliates. Net proceeds will be approximately INR 54.5 billion (C$871 million). The joint venture was established in 2017. Sold our 50% stake in 100 Regent St, a mixed-use office building in London, U.K., alongside our partner, Hermes Real Estate Investment Management. Net proceeds from the sale were £46 million. Our original investment was made in 2013. Committed US$100 million to Glenwood Korea Private Equity Fund III, managed by Glenwood Private Equity, which will target mid-market control carve-out opportunities in South Korea. Invested US$100 million in ModMed, a leading provider of specialty-specific SaaS solutions for ambulatory medical practices, alongside Clearlake Capital. Committed US$50 million to TPG Growth VI, which will invest in mid-market growth buyout and growth equity opportunities primarily in health care, software, digital media & communications, and business services, and invested US$40 million alongside TPG Growth in Cliffwater LLC, a U.S.-based provider of retail-focused alternative investments products. Invested US$75 million in Aavas Financiers Limited, one of India's leading affordable housing finance companies serving borrowers from low-to-middle-income households across 14 states, alongside CVC Capital Partners Asia. Received an approximate 13% equity stake in Bunge, a global agribusiness and food company, and received approximately US$0.7 billion in cash as part of Bunge's completed merger with Viterra. Our original investment in Viterra was made in 2016. Committed US$125 million to TPG Emerging Companies Asia Fund I, managed by TPG Capital Asia, which will invest in middle-market opportunities across Asia Pacific. About CPP Investments Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At June 30, 2025, the Fund totalled C$731.7 billion. For more information, please visit or follow us on LinkedIn, Instagram or on X @CPPInvestments. Disclaimer Certain statements included in this press release constitute "forward-looking information" within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbors. All such forward-looking statements are made and disclosed in reliance upon the safe harbor provisions of applicable United States securities laws. Forward-looking information and statements include all information and statements regarding CPP Investments' intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as "trend," "potential," "opportunity," "believe," "expect," "anticipate," "current," "intention," "estimate," "position," "assume," "outlook," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" and similar expressions. The forward-looking information and statements are not historical facts but reflect CPP Investments' current expectations regarding future results or events. The forward-looking information and statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including available investment income, intended acquisitions, regulatory and other approvals and general investment conditions. Although CPP Investments believes that the assumptions inherent in the forward-looking information and statements are reasonable, such statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. CPP Investments does not undertake to publicly update such statements to reflect new information, future events, and changes in circumstances or for any other reason. The information contained on CPP Investments' website, LinkedIn, Facebook, Instagram and X are not a part of this press release. CPP INVESTMENTS, INVESTISSEMENTS RPC, Canada Pension Plan Investment Board, L'OFFICE D'INVESTISSEMENT DU RPC, CPPIB and other names, phrases, logos, icons, graphics, images, designs or other content used throughout the press release may be trade names, registered trademarks, unregistered trademarks, or other intellectual property of Canada Pension Plan Investment Board, and are used by Canada Pension Plan Investment Board and/or its affiliates under license. All rights reserved. SOURCE Canada Pension Plan Investment Board View original content to download multimedia:
Atlantic
an hour ago
- Atlantic
The Damage to Economic Data May Already Be Done
If you have been closely following the ongoing Bureau of Labor Statistics story—in which Donald Trump fired then-Commissioner Erika McEntarfer after being displeased by the bureau's July jobs report and selected the Heritage Foundation economist E. J. Antoni to succeed her—you will have heard an unusual consensus about the airtight political independence of the agency and the people who work there. Among BLS employees, including former Commissioner William Beach, whom Trump appointed in his first term, a fierce loyalty to the data is bone deep. Antoni does not appear to share that spirit of independence, nor does he seem to have a great deal of talent for economics or statistics, according to economists from across the political spectrum. Even so, his power to avoid future reports that embarrass Trump appears to be limited. In an interview recorded on August 4, before his nomination, Antoni proposed eliminating the monthly release of employment data, but the administration has already insisted that that won't happen. BLS data may not be completely tamper-proof, but they're pretty close. The sharpest economic minds in this country, both inside and outside the bureau, pay meticulous attention to the deepest layers of the data, many strata below the headline-unemployment rate and change-in-payroll employment. Deceiving them all would be very hard to do. Unfortunately, that might not matter. Antoni doesn't have to manipulate any data to undermine the reliability of the government's economic statistics. That damage might already have been done. I was a career press official at the Department of Labor who prepared a series of labor secretaries for their TV appearances early on the first Friday morning of every month. The release of the jobs report—'Jobs Day'—is a marquee event in this little corner of the federal government, when the press and the financial world's attention is fixed on the plaza of the Frances Perkins Building, in Washington. I lasted only one Jobs Day into the tenure of Trump's labor secretary, Lori Chavez-DeRemer, before taking DOGE's buyout deal. I decided to leave the government in large part out of fear of precisely the kind of demands for oaths of political loyalty that were being threatened then and are now being implicitly exacted on every career civil servant at the BLS. Brian Klaas: Will Trump get his Potemkin statistics? Most labor secretaries, understanding the power of jobs data to create or destroy value in the financial markets, have taken a sober and restrained approach to these press appearances. Then there's Chavez-DeRemer. One of her prime talking points has been that 'native-born workers have accounted for all job gains since Inauguration Day.' Every single one. Not a single Russian surgeon or Canadian blackjack dealer got a job after January 20 of this year. In fact, the BLS makes no such assertion. The claim is absurd on its face—the kind of political catnip that a Cabinet secretary in the Trump administration is expected to put forward without shame, as a kind of homage to the boss. The existence of an independent BLS commissioner is predicated on the idea that someone needs to talk about the labor market who is never tempted to say such things. It's a public service, primarily for investors. Might a member of the Cabinet say something iffy as a result of her political loyalties? That's not ideal, but here's someone else you can listen to who doesn't have that problem. Until now, this arrangement allowed the president's representative to attempt to convince the public of the effectiveness of his priorities while reinforcing the objective, nonpartisan genesis of the underlying data. If the BLS commissioner is now every bit the political animal that the labor secretary is, then what is the purpose of the BLS commissioner? I am not a statistician; perhaps Antoni can mandate methodological deviations that bias the numbers in Trump's preferred direction. But I don't think he needs to. Confidence in the bureau is already badly weakened. This is about more than just our trust as consumers of the jobs report, because we are also its producers. To create its reports, the BLS needs businesses and citizens to take the time to respond to surveys about changes to their payroll and about who is going to work or looking for a job in their household. Even before Trump won the election last November, the trend in survey responsiveness was declining, posing an existential threat to the robustness of the data. The appointment of a transparent partisan to the head of the BLS is unlikely to improve matters. Why should we take the time to report our economic circumstances to the government if we believe the government isn't interested in the truth? If fewer Americans think that contributing to the creation of these reports is a valuable use of their time, the civil servants at the BLS will struggle to produce reliable numbers, regardless of what policies Antoni puts into place. The damage to our understanding of the economy would be far more consequential than a month of bad jobs numbers.
