Latest news with #privateinvestment
Globe and Mail
5 days ago
- Business
- Globe and Mail
OSC looks to improve access to private markets while investor advocate urges caution
The Ontario Securities Commission (OSC) is moving ahead with a project to make private market investment funds more accessible to investors, a proposal supported by asset managers while investor advocates raised concerns. The regulator said Thursday that it's developing a LaunchPad project through its innovation office to introduce new investment fund products with exposure to long-term assets. The project will allow firms to work with the OSC and receive exemptive relief to develop alternative investment funds for retail investors. The move follows a consultation seeking input on a framework to give individual investors access to 'long-term asset funds' comprised primarily of non-public assets. While many asset managers supported the proposal, other organizations raised concerns. The OSC's Investor Advisory Panel (IAP) said in its annual report released this week that it's concerned about the rising interest in alternative investment products, as private markets lack transparency and offer less investor protection than public markets. Any efforts to increase access to private markets should consider the risks to retail investors, it said. The OSC said Thursday that exemptive relief decisions under the project would require 'bespoke investor protection controls based on the specific details of each fund and product.' The IAP said in its submission to the OSC consultation that the 'nature and structure of long-term illiquid assets does not render them a suitable investment for a large swath of the retail investing public.' However, the IAP added in the submission that not all retail investors need to be restricted to public markets and that an allocation to 'long-term assets' within retirement plans may be suitable for investors with a long time horizon. If the OSC goes ahead with the proposed fund structure, the IAP recommends enhanced risk disclosure that explains the investments' illiquid nature and redemption costs clearly. The IAP also calls for clear fee structures that explain performance fees. OSC chief executive officer Grant Vingoe said the LaunchPad project would provide new opportunities for firms and investors while providing oversight and protection. 'The investment landscape is shifting, and retail investors are increasingly looking to diversify their portfolios,' he said in a news release. The IAP's annual report also noted concerns about unintended consequences from the client-focused reforms, which introduced enhanced know-your-client and know-your-product rules in 2021. Three of the big banks responded to the rules by restricting branch-level advisors and financial planners to selling their in-house proprietary products. The IAP warned that limited product shelves may 'reduce interest and investment in the advisory channel.' The panel also raised the issue of advisor titles causing confusion, especially at the bank branch level. '[A]n investor who speaks to a bank branch-level employee, who uses the term 'advisor' in their title, may conclude, based on that title, that the employee is required to act in the investor's best interest,' it stated in the report. 'These issues need to be addressed.' Broader lens: Technology stocks have rebounded sharply after being roiled by uncertainty and recessionary fears triggered by U.S. President Donald Trump's tariffs. Although fund managers are very upbeat on some of these mega-caps, they're also betting on other names to carry the tech baton. Shirley Won reports. Broader service: Clients have moved on from transactional relationships and are now demanding an advisor who is relational. But what exactly is a relational advisor? Julia Chung, co-founder and chief executive officer of Vancouver-based Spring Planning Inc., explains. Broader diversifiers: Most investors understand that diversification can help preserve portfolio values when markets are volatile. But an asset mix that worked during one market downturn may not have the same stabilizing effect in another. Brenda Bouw reports. Real estate: The co-founders of now-defunct syndicated mortgage company Fortress Real Developments Inc. have been found guilty of fraud after a lengthy criminal trial. Reinvest: Prominent Canadian business leaders with interests in the defence industry are calling for a major reinvestment in the sector in Canada, arguing the country can boost its prosperity and security in tandem. Rethink: Canada's business community is calling on Prime Minister Mark Carney to review the digital services tax that has triggered the U.S. government's proposed retaliatory taxes on Canadian companies and investors in U.S. securities. The proposal could cost investors who own U.S. securities up to $81-billion in additional taxes over seven years.
Argaam
5 days ago
- Business
- Argaam
US economy contracts 0.2% in Q1 amid rising imports
The US economy contracted less than expected in the second reading of first-quarter Gross Domestic Product (GDP), with imports rising and government spending falling. Data released today, May 29, showed real GDP shrank 0.2% annualized in the first quarter, below the initial 0.3% contraction estimate. This second reading beat analyst forecasts of a 0.3% decline, following 2.4% growth in the previous quarter. The Bureau of Economic Analysis attributed the contraction to higher imports and lower government spending, partly offset by increases in private investment and exports. The revision mainly reflects higher investment estimates, partly balanced by lower consumer spending figures. The Bureau of Economic Analysis kept the personal consumption expenditures (PCE) price index at the initial estimate of the last quarter of 3.6%. It lowered the core PCE price index, excluding food and energy, to 3.4% from 3.5% of the previous estimate.
Bloomberg
6 days ago
- Business
- Bloomberg
UK Plans to Force Nation's Pensions to Invest in Private Markets
The UK said it plans to require the country's pension funds to invest in private markets and the domestic economy, a move widely opposed by the City of London's investment managers. The government 'will take a reserve power in the pension schemes bill to set binding asset allocation targets' for investments in private markets, the Treasury said Thursday in an emailed statement. It also will secure £27.5 billion ($37 billion) for 'local investment priorities' from defined-benefit programs for public employees.
Argaam
6 days ago
- Business
- Argaam
Aseer draws SAR 50B investments: ADA
Hashem Al-Dabbagh, CEO of Aseer Development Authority (ADA), said that the authority exceeded its investment targets. The private sector investments in Aseer reached around SAR 25 billion, excluding investments by the Public Investment Fund (PIF), which also amount to about SAR 25 billion—bringing the total investments in the region to about SAR 50 billion. In an interview with Argaam on the sidelines of the Aseer Investment Forum, Al-Dabbagh, added that the first edition of the forum, held two years ago, saw investments worth SAR 1.7 billion. This figure grew over the following two years to exceed SAR 5 billion. The current forum witnessed the announcement of new investments worth SAR 4 billion, in addition to projects under study estimated at SAR 15 billion. PIF implements strategic projects in the region at a total value of nearly SAR 25 billion. These projects include Soudah Development Co., which involve luxury hotel and residential developments across six locations in Soudah, with investments exceeding SAR 10 billion. He also cited Al-Wadi project, which is developed by Ardara Co. in central Abha. The project aims to revive the historical riverbed through a comprehensive development of the surrounding areas, with investments of over SAR 10 billion. PIF's investments in the region also include other companies such as Aseer Investment, Qiddiya Development, with some projects still under study. Regarding ADA's strategy, Al-Dabbagh affirmed that it focuses on enhancing the tourism sector and its supporting industries, such as entertainment, agri-tourism, and retail centers. He pointed out that most of the investments attracted during the forum fall within these areas. He added that ADA is also exploring investment opportunities in other sectors, including renewable energy, mining, industry, and agriculture. Al-Dabbagh also revealed that the authority is working with relevant entities to implement a comprehensive development project for Abha Airport. The project aims to increase the airport's capacity to 10 million passengers annually in its first phase, and to 13 million in the second phase—compared to its current capacity of just 1.8 million passengers per year. The existing airport is operating beyond its designed capacity, currently handling more than 4 million passengers annually. This has led to the launch of a global design competition for a new airport with a Saudi countryside theme. One of the updated designs has been approved by the leadership. The project is being implemented through a public-private partnership, in coordination with the General Authority of Civil Aviation (GACA), the National Center for Privatization & PPP, and the Matarat Holding Company. Al-Dabbagh described the project as one of the key enablers of tourism and economic transformation in the region.
Zawya
26-05-2025
- Business
- Zawya
Egypt introduces tax incentives to boost trust, partnership with business community
Egypt's Minister of Finance, Ahmed Kouchouk, announced on Sunday new tax facilitations aimed at fostering greater trust and deeper partnership between the government and the business community, underscoring Egypt's ongoing commitment to economic reform. Speaking at the US–Egypt Policy Leaders Forum 2025, organized by the American Chamber of Commerce under the leadership of Tarek Tawfik, Kouchouk emphasized that there is strong alignment across all pillars of Egypt's economic reform agenda. This coordination, he noted, is essential for enhancing the competitiveness of the Egyptian economy on a sustainable basis. The minister stated that Egypt has begun to reap the benefits of structural reforms, with robust macroeconomic and financial performance indicators over the past ten months. 'The Egyptian economy is now positioned for gradual and sustained growth,' Kouchouk said, citing increasing investment as a key driver of this momentum. A central priority for the government, he emphasized, is empowering the private sector. 'We are adopting policies that enable the private sector to take the lead in economic activity,' he said. As a result, the private sector's share of total investments rose to 60% between July and December 2024, a significant indicator of growing business confidence and engagement. Kouchouk explained that the government is managing public finances with a careful balance between maintaining fiscal discipline and stimulating economic activity. He highlighted a series of targeted initiatives and programs designed to support key sectors including industry, agriculture, exports, and tourism, all aimed at enhancing Egypt's global economic competitiveness. One of the most notable achievements this fiscal year, the minister revealed, is the recording of the highest primary surplus in Egypt's recent history—3.1% of GDP from July 2024 to April 2025. This surplus was achieved despite rising global interest rates and demonstrates Egypt's prudent fiscal management. He also noted a decline in the debt-to-GDP ratio, a key metric reflecting the country's improving financial health. Looking ahead, Kouchouk affirmed that the government is committed to continuing this positive trajectory by further reducing debt levels and creating fiscal space to increase public investment in critical areas such as healthcare, education, and broader social and economic development.
