ADVERTISEMENT

Michael Sabia to Exit One Year Early as Head of Quebec’s Caisse

Michael Sabia to Exit One Year Early as Head of Quebec’s Caisse

(Bloomberg) -- Michael Sabia will step down as chief executive officer of the Caisse de Depot et Placement du Quebec in February after an 11-year term that saw Canada’s second-biggest pension fund almost triple in assets and dive into global markets.

Sabia, 66, who is leaving one year ahead of schedule, will lead the Munk School of Global Affairs and Public Policy at the University of Toronto.

“I know that I am leaving CDPQ and its people in a strong position to seize the many opportunities that lie ahead for them as I move on to my next challenge,” Sabia said in a statement Tuesday.

Under Sabia’s tenure, which began after the financial crisis, the Caisse refocused on the long term and fundamental value. The pension fund has returned 9.9% annually over the past 10 years, pushing assets under management to C$326.7 billion ($247 billion). About 64% of the fund is now in global markets versus 36% in 2009, according to the statement.

Sabia intensified the fund’s efforts to fulfill its twin mandates: generating optimal returns while contributing to Quebec’s economic development. It become the first pension fund manager in the world to design, build and operate a public transit system -- a light rail project in Montreal.

In 2017, the former CEO of telecom BCE Inc. created an investment strategy to address climate change and said this year that Caisse’s portfolio would be carbon-neutral by 2050.

The Caisse’s board has retained an international firm to help it select its next chief. “To ensure an orderly transition, we intend to conclude the process at the beginning of 2020 with the appointment of a successor approved by the government,” chairman Robert Tessier said.

To contact the reporter on this story: Paula Sambo in Toronto at psambo@bloomberg.net

To contact the editors responsible for this story: Jacqueline Thorpe at jthorpe23@bloomberg.net, ;Nikolaj Gammeltoft at ngammeltoft@bloomberg.net, Steven Frank

©2019 Bloomberg L.P.