RED SCARE 2.0
Asian American groups call on Biden to end controversial China Initiative


Claire Wang
Wed, December 29, 2021

Over the past 28 months, Feng “Franklin” Tao and his family have been driven to the cusp of bankruptcy as they try to prove he isn’t a tech spy for the Chinese government.

In August 2019, FBI agents arrested Tao, a chemical engineering professor at the University of Kansas, on fraud charges, accusing him of failing to disclose his affiliation with a Chinese university. He has lost his job and, with a trial date scheduled for March, faces a possible prison sentence of 20 years.

Through his attorneys, Tao pleaded not guilty to all charges and contended that the FBI knowingly used false information from an informant to obtain search warrants.

“We live under constant fear that our family would be separated as a result of this injustice,” said Tao’s wife, Hong Peng.

She said the ordeal has taken a toll on the mental health of her teenage children, both of whom were born in the U.S. The legal defense fees, meanwhile, have almost reached $1 million. Peng, now the primary provider for her family, juggles three jobs and sometimes has to work 24-hour shifts as an ultrasound technician to make ends meet. Even though they have raised nearly $350,000 from GoFundMe, the Taos are still more than two months behind on payments.

Tao was the first of more than 20 academics of Chinese descent to be prosecuted under the China Initiative, a Trump-era national security program to address Chinese economic espionage — the theft of trade secrets to benefit a foreign government — in universities and research institutions. Over the past year, Asian American advocacy groups have increased pressure on the Biden administration to end the initiative, which they say unfairly targets ethnic Chinese scientists and brings emotional and financial harm to their families.

Image: Franklin Tao (Travis Wessel)

“The China Initiative impacts Americans, permanent residents, immigrants, international students and visiting scholars,” said Gisela Kusakawa, a staff attorney for the civil rights group Asian Americans Advancing Justice, or AAAJ. “It’s based on the premise that all scientists of Chinese descent or [who] have connections to China should be treated with suspicion.”

Nearly 90 percent of the 148 people charged under the China Initiative are ethnically Chinese, according to an investigation by MIT Technology Review. They include U.S. citizens, Chinese citizens and citizens of Hong Kong and Southeast Asia.

The Justice Department didn’t respond to a request for comment. At a congressional hearing last month, Attorney General Merrick Garland said China represents “a serious threat with respect to espionage” and that Justice Department officials “never investigate or prosecute based on ethnic identity.”

The racial profiling of scientists of Chinese origin, advocates say, stretches back more than a quarter-century, to the Economic Espionage Act of 1996, which sought to address economic espionage by foreign governments. Since 2009, a majority of defendants charged under the law have been people of Chinese heritage, according to a recent report from the advocacy group Committee of 100.

The China Initiative, despite its stated mission, hasn’t found much success catching spies or countering technology theft. Only about a quarter of 77 cases include economic espionage charges, and fewer than one-third have resulted in convictions, according to the MIT Technology Review analysis. Since 2018, when the initiative launched, the FBI has brought 12 prosecutions at academic or grant-making institutions, none of which involved espionage charges.

On the other hand, the study found, there has been an increase of “grant fraud” cases centered on academics who fail to disclose financial ties to Chinese entities on grant application and conflict-of-interest forms — which is a federal requirement. Because the U.S. has historically encouraged academic collaboration with China, experts say, reporting policies aren’t always clearly communicated to university scientists.

Anming Hu, a professor and nanotechnology expert at the University of Tennessee, was put under house arrest for 18 months for failing to disclose income he had received from a Chinese university. Hu, however, claimed that the University of Tennessee asked him to disclose income in excess of $10,000; he made only $3,000 from lectures in China. In September, a federal judge acquitted him on all counts, concluding that there was no evidence of fraud.

A year ago, AAAJ launched the Anti-Racial Profiling Project to persuade lawmakers to end the China Initiative and assist people targeted by the Justice Department. The group has provided legal and advocacy support to more than 70 academics, many of whom lost their jobs.

Kusakawa, who leads the project, said many targeted scientists have lived in the U.S. for decades and have made it their home. Being under prosecution renders them unemployable and jeopardizes their immigration status. Some weren’t able to find work again even after their charges were dropped.

Thu Nguyen, the executive director of OCA-Asian Pacific American Advocates, a nonprofit advocacy group, said the program has created a climate of fear that could trigger a brain drain in academia. The growing threat of racial profiling in the U.S., she said, has already pushed some talented scientists to look for jobs back in China.

According to an Arizona State University survey of nearly 2,000 scientists at 83 research institutions, 51 percent of ethnically Chinese scientists, including U.S. citizens, feel considerable fear or anxiety about being under surveillance by the US government. Just 12 percent of non-Chinese scientists share the sentiment.

“All this uproar about prosecuting ‘spies’ and anyone with ties to China causes fear in the community,” Nguyen said. “Folks from Asia who may have wanted to come here aren’t coming anymore because of all these government processes and background checks.”

The China Initiative, she said, affects not only professors and working scientists but also students, many of whom may hesitate to apply for scholarships or pursue careers in science and technology out of fear of prosecution.

In recent months, OCA has been lobbying lawmakers to end the program. In November, the group visited senators and mobilized chapter members to speak out about the issues at legislative sessions.

Students and faculty members at some academic institutions have also stepped up support of their Asian and Asian American colleagues.

In January, after MIT professor Gang Chen was charged with grant fraud over allegations that he concealed ties to the Chinese government, 170 of his colleagues signed an open letter condemning the investigation as “deeply flawed and misleading.” (MIT’s president said the school handled grant funding and collaboration with China. Chen is fighting the charges.) Last month, New York University’s graduate student union launched a petition in support of two tenured Asian professors in the medical school who are targeted by the initiative.

Meanwhile, Tao’s family, who have lived in the U.S. for nearly two decades, are committed to clearing his name and fighting the case, which they consider an “injustice.”

“We came here to chase the American dream,” Peng said. “We don’t want this to happen to any other family.”

Remove your tattoos, Beijing tells Chinese football players

Body ink is traditionally frowned upon in China but it is increasingly popular among young adults (AFP/MARCO BERTORELLO)

Wed, December 29, 2021

Footballers playing in China's national team should remove any existing tattoos and are "strictly prohibited" from getting any new ones, the country's sports administration body has said.

The sport has found itself in the crosshairs of the Communist Party's purity drive in recent years, and players on the national football team routinely cover their arms with long sleeves or bandages to hide their tattoos.

But the China Sports Administration statement, dated Tuesday, said that players in the national team "are strictly prohibited from having new tattoos".

"Those who have tattoos are advised to have them removed," the statement continued. "In special circumstances, the tattoos must be covered during training and competition, with the consent of the rest of the team."

It went on to say that the under-20 national teams and those even younger were "strictly prohibited" from recruiting anyone with tattoos.

But not all fans appeared to be behind the new rules.

"Are we choosing a good football player or a saint?" asked one angry fan on the social media platform Weibo.

"Shall we just say outright that only the Party members could play football?" asked another.

Body ink is traditionally frowned upon in China but it is increasingly popular among young adults, even as authorities make plain their disdain for it.

The Chinese Football Association has ordered players in the national team to cover tattoos in recent years and packed young footballers off to military camps for drills and Marxist-style "thought education".

That has prompted complaints from fans that it is thinking more about politics than sport.

Last year, a women's university football match was eventually called off after players were told they were not allowed to have dyed hair.

President Xi Jinping wants China to host and even win the World Cup one day.

But they are fifth of six teams in their qualifying group for next year's World Cup, with only the top two guaranteed to qualify.

This year, Beijing has also pushed through a series of restrictions on youth culture, including sweeping measures to ban "abnormal aesthetics" and crack down on the perceived excesses of modern entertainment.

It has made an example out of movie stars that allegedly stepped out of line, banned reality talent shows and ordered broadcasters to stop featuring "sissy" men and "vulgar influencers".

As tensions have mounted with the West, China has also pushed a nationalist and militaristic narrative at home, including a vision of tough masculinity.

bur-rox/jah

VOODOO HOODOO 

As pandemic crisis bites, young Cubans find solace in sect with African origins





As pandemic crisis bites, young Cubans find solace in sect with African originsA group of initiates of the Cuban religion Abakua take part in the oath ceremony at the Efi Barondi Cama temple, known as a 'power' (AFP/Yamil LAGE)

Yamil Lage
Wed, December 29, 2021, 11:04 PM·2 min read


Five blindfolded young men kneel before a priest who is uttering blessings in the West African language Yoruba, while they vow to be brave, respectful and good to their community.

But this scene is not taking place in West Africa: this is Cuba, and the five young men here are converting to Abakua, a uniquely Cuban spiritual practice.

Faced with economic hardships and the Covid-19 pandemic, many young Cubans have sought refuge in religion, including Abakua, a belief system that originated as a brotherhood of protection for enslaved Africans in Havana nearly 200 years ago.

"With this problem of the pandemic, it has grown a lot, we've had a lot of" new devotees, Juan Ruiz Ona, a religious leader, told AFP.

The religion shares attributes with Santeria and Palomonte, other popular Latin American sects with African origins and influences from various belief systems.

But while the other two are practiced across the region, Abakua is exclusive to Cuba.

At the Efi Barondi Cama temple in Matanzas, 100 kilometers (60 miles) east of Havana, Ona is the Yamba -- the second-highest ranking official.

The private initiation ceremony for the young men taking place here is open only to the Abakuas and their guests.

The person taking on the role of the Ireme -- or little devil -- rubs a chicken over the new disciples' bodies as part of a purifying ritual, before allowing them into the sacred space where the secret ritual takes place.

Dancing to a rhythmic drumbeat, the Ireme represents the presence of the ancestors.

- 'Support our brothers' -

Becoming an Abakua has traditionally been difficult, and the secret rules imposed on devotees were notoriously harsh.

There are about 130 Abakua fraternities in Cuba, made up entirely of heterosexual men.

The fraternities are known as "powers," "games" or "plants."

Over time, the groups have lost their cloak of secrecy, but not their rigid principles, such as the support for brothers in faith.

"During this pandemic... we've tried to support our brothers, even though some have died, others were ill, and others we visited and helped," said Ruiz.

Like many Cubans, some of the faithful have emigrated and send money home to help their fraternity.

"We're a constructive institution, we contribute with our revolution and our young," added Ruiz, a firm supporter of the island nation's communist regime.

Following the 1959 socialist revolution, the government declared itself atheist, but after the fall of the Soviet Union -- the regime's major backer -- Cuba in 1990 became an officially secular state, albeit with a Catholic majority.

Sociologists estimate that 85 percent of the population of 11.2 million consider themselves believers --though not necessarily practicing ones -- of a religion, often in sects that combine Catholicism with animist African beliefs.

Yl/Cb/lp/dga/bc/caw

Bathhouses in Syrian city boom as crisis turns showers cold

Men bathe at Hammam al-Qawas, a traditional Turkish bathhouse, in Syria's northern city of Aleppo on Dec 16, 2021. 

PHOTO: AFP

ALEPPO, SYRIA (AFP) - The ancient bathhouses of Syria's second city Aleppo are filling up again, not because of a revived fad, but due to power cuts that have made hot showers a luxury.

"We mainly rely on electricity to heat water at home, but the electricity is cut off most of the time," said Mr Mohammed Hariri from a crowded bathhouse where he had waited half an hour for his turn.

"Here, we take all the time we need showering," the 31-year-old told AFP.

With their marble steam rooms, hexagonal fountains and distinctive domes, Aleppo's bathhouses have for centuries served as a social hub where men come together to wash, listen to music and even eat.

But shortages of water, fuel and electricity across war-torn Syria have also turned them into a refuge for those looking for a long, warm bath during the cold winter.

In Hammam al-Qawwas, one of more than 50 traditional bathhouses in Aleppo's Old City, diesel fuel and firewood are used to power furnaces providing hot water and steam.

Under its arched dome, men swaddled in towels sit in one of many side rooms, some singing traditional Arabic tunes as they scoop up hot water from stone basins.

In an adjoining area, masseurs use soap and loofahs to scrub clean clients lying flat on the marble floor, as restrictions against the coronavirus pandemic seem a world away.

Mr Hariri said he used to visit Aleppo's bathhouses with his father and uncles as a child.

Now, he comes with his son - not to continue a tradition, but because the water at home is not enough for his family of five.

"At home, you have to shower in five minutes, but at the bathhouse, you can stay for five hours," he said.

Many of the structures were severely damaged during several rounds of battles between regime forces and rebels.

Only around 10 have reopened since Aleppo returned to full government control in 2016, according to AFP correspondents.

Sitting at the reception room inside Hammam al-Qawwas, Mr Ammar Radwan fielded calls from clients looking to book an appointment.

The 33-year-old who inherited the 14th-century bathhouse from his grandfather said he never thought business would bounce back.

"We reopened the hammam in 2017, after the battles in Aleppo ended, but we never expected to see such a turnout," he told AFP while updating a client register.

'This is not a life': The displaced Syrians selling trash to survive

Issued on: 29/12/2021 - 

Displaced Syrians working at a landfill on the outskirts of the northern city of Raqqa. 

© AFP

Video by: Sam BALL

At a vast landfill on the outskirts of the Syrian city of Raqqa, once the Islamic State group's capital, men, women and young children scour the rubbish for scrap metal or anything else they can sell on. They are just some of the millions of Syrians displaced by a decade of conflict that has left around nine in 10 of the population living in poverty.

Tributes paid to British trans pioneer April Ashley


From an early age, Ashley felt that her birth gender of male was wrong (AFP/SEAN DEMPSEY)

Wed, December 29, 2021

April Ashley, a British model and actress who was a pioneering figure in the fight for trans rights, has died at 86, local media reported Wednesday.

Ashley was one of the first British people known to have undergone gender reassignment surgery, although she only gained full legal recognition as a woman in the UK in 2005.

She was honoured by Queen Elizabeth II who awarded her an MBE (Member of the British Empire) in 2012 for services to the transgender community and activist Peter Tatchell wrote that she was "the great trans trailblazer for decades".

Ashley was born George Jamieson in 1935 in the port city of Liverpool in northwestern England.

From an early age, she felt that her birth gender of male was wrong and she was severely bullied and beaten by her mother.

She briefly served in the Merchant Navy and had treatment at a psychiatric hospital.

She found greater acceptance when she moved to London and then Paris, where she began performing at the Caroussel de Paris, the city's first transgender revue.

She underwent sex-change surgery in Morocco in 1960 aged 25, taking the name April Ashley, reflecting the month of her birth.

The UK accepted her new identity and gave her papers allowing her to gain a passport and driving licence.

She became a successful model, photographed for Vogue and appeared in a film with US star Bob Hope called "Road to Hong Kong".

But her sex change later caused a public scandal after it was revealed in a tabloid.

She wed a British aristocrat, Arthur Corbett, in 1963 in Gibraltar, but their marriage swiftly broke up.

To avoid paying maintenance payments, Corbett applied to annul their marriage.

A court in 1970 famously ruled that the marriage was void because Ashley was male, even though Corbett knew her history.

This led to Ashley facing public attacks.

She spent a period running a London restaurant and moved to the US.

She returned to the UK in 2005, after the passing of the Gender Recognition Act that allowed her to be fully recognised as a woman.

Her life was celebrated with a 2013 exhibition in her home city of Liverpool titled "April Ashley: Portrait of a Lady".

Her friends included the former Labour Party deputy leader John Prescott.

Tributes came from friends including French transgender performer Marie-Pierre Pruvot, who wrote on Facebook of her death on Monday: "A little bit of me is going away."

"She had airs of a Queen and crazy humour, tremendous liveliness", Pruvot added.

British pop star Boy George posted on Twitter a photograph he had taken of Ashley, calling her "such an inspiration to my generation and beyond!"

am/har

 

Pension charity criticizing CPPIB’s new environmental investing strategy

By: Gideon Scanlon
December 21, 2021



A Canadian charitable initiative is criticizing the Canada Pension Plan Investment Board’s new environmental investing strategy.

“It’s encouraging to see that the CPPIB wants to invest in critical decarbonization pathways for hard-to-abate sectors,” wrote Patrick DeRochie (pictured), senior manager at Shift Action for Pension Wealth and Planet Health, in an email to the Canadian Investment Review. “But the CPP doesn’t seem to grasp that there is no credible or profitable pathway to zero emissions for companies whose core business is exploring for, extracting, refining and transporting fossil fuels.”


Read: CPPIB targeting high carbon emitters for long-term investments

The CPPIB’s strategy, announced last week, aims to identify companies committed to creating value by lowering their emissions in a manner that’s consistent with the CPPIB’s own time frame. The strategy would encourage investments to be made in companies in the petroleum and construction sectors.

Shift Action supports some aspects of the strategy, including its aim to provide a robust, targeted engagement strategy that sets clear expectations for companies to improve environmental behaviour and reduce emissions in line with a safe climate. “For most high-carbon sectors, such as cement, steel, mining and transportation, there is a clear financial and technological pathway to decarbonization,” noted DeRochie.

However, the charity doesn’t believe the approach will work for reducing the carbon footprint of businesses in the oil and gas sector. According to DeRochie, businesses in the sector have “no credible or profitable decarbonization pathway.

Read: CPPIB sustainability report shows increased investments in renewable energy

“The products these companies extract, refine and sell must be left in the ground. The climate and net-zero plans of both the international oil and gas super majors and Canadian oil and gas companies have been shown to be grossly insufficient. Just like you can’t engage a tobacco company out of making its cancer-causing product less harmful, you can’t engage a fossil fuel company out of making its climate-disrupting products less harmful.”

Instead of the CPPIB’s approach, Shift Action advises pension plans sponsors to put oil and gas sector investees on notice that they expect to see credible climate strategies produced within the next two-to-three years or face divestment. This would also include demands for investees to stop exploring for more oil and gas and stop approving new extraction projects and begin reducing production.

“An engagement strategy without the possibility of divestment is like raising a toddler without consequences. There needs to be consequences for companies that are greenwashing or not getting serious about the accelerating clean energy transition.”

The CPPIB declined the Canadian Investment Review‘s request for comment on this story.

Read: More standards required for pension funds using ESG data, indices and scores

P3

KKR, Ontario Teachers' and PSP Investments Complete Acquisition of Spark Infrastructure

Author of the article:

Business Wire

Publishing date:

Dec 22, 2021  

Article content

SYDNEY — KKR, Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”) and Public Sector Pension Investment Board (“PSP Investments” and together, “the Consortium”) today announced the completion of the acquisition of all issued securities of Spark Infrastructure (ASX: SKI) in an all-cash transaction for approximately A$5.2 billion. All regulatory approvals have been obtained.

Spark Infrastructure invests in essential energy infrastructure businesses within Australia, which serve over 5 million homes and businesses, and are deeply involved in supporting the transition of Australia’s electricity grid to one that is increasingly reliant on renewable energy. Spark Infrastructure’s portfolio comprises:

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– 49% of SA Power Networks, the sole operator of South Australia’s electricity distribution network, supplying approximately 896,000 residential and commercial customers across the state;
– 49% in Citipower and Powercor (together known as “Victoria Power Networks”), the operator of distribution networks that supply electricity to over 1.1 million customers in Melbourne and central and western Victoria;
– 15.01% of TransGrid, the largest high-voltage electricity transmission network by volume in the National Electricity Market, connecting generators, distributors and major users in New South Wales and the Australian Capital Territory; and
– 100% of the 120MW _DC /100MW _AC Bomen Solar Farm located north of Wagga Wagga in New South Wales.

Andrew Jennings, a Director on KKR’s Infrastructure team in Australia, said, “We are excited to invest in Spark Infrastructure, which is a world-class business that plays a critical role in Australian communities. Alongside Ontario Teachers’ and PSP Investments, we look forward to working with the management teams of Spark Infrastructure and its portfolio companies, to support the business’ objectives to improve grid stability and build secure, high-quality and cost-effective electricity infrastructure for customers across the country.”

“Spark Infrastructure aligns perfectly with our strategy to invest in high-quality regulated infrastructure assets globally that will both benefit from and support the transition to a low-carbon economy,” said Bruce Crane, Managing Director and Head of Asia Pacific Infrastructure & Natural Resources at Ontario Teachers’. “We look forward to working with our partners and management to continue to optimize network performance and reliability while also supporting future growth of the portfolio.”

“We are excited to add Spark Infrastructure to our Infrastructure portfolio and to continue nurturing our established relationships with KKR and Ontario Teachers’,” said Sandiren Curthan, Senior Director, Infrastructure Investments, PSP Investments. “As Australia transitions away from coal, Spark Infrastructure’s electricity transmission and distribution networks are well-positioned to enable the clean energy transition toward a low-carbon economy.”

KKR is making the investment through its core infrastructure strategy which focuses on investing in high-quality regulated assets in developed OECD markets.

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About KKR
KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About Ontario Teachers’ Pension Plan Board
Ontario Teachers’ Pension Plan Board (Ontario Teachers’) is the administrator of Canada’s largest single-profession pension plan, with C$227.7 billion in net assets (all figures at June 30, 2021 unless noted). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.6% since the plan’s founding in 1990. Ontario Teachers’ is an independent organization headquartered in Toronto. Its Asia-Pacific region offices are located in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded as at January 1, 2021, invests and administers the pensions of the province of Ontario’s 331,000 active and retired teachers. For more information, visit otpp.com.

About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with C$204.5 billion of net assets under management as of March 31, 2021. It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow us on Twitter and LinkedIn.

Caisse co-financing remote monitoring company, OMERS subsidiary enters Australian rental market

By: Staff
December 20, 2021


The Caisse de dépôt et placement du Québec is co-financing $100 million in credit for a remote area monitoring company.

The Caisse is joining fellow investors, including the Business Development Bank of Canada and Export Development Canada, to provide credit for quasi-equity, subordinated debt and revolving credit for Vosker. The majority of the funding will be used to finance the acceleration of businesses growth through sales and marketing, new product development and human capital investments, according to a press release.

Based in Quebec, Vosker sells cellular-connected devices that enable remote monitoring of areas where Wi-Fi and electricity are either not accessible or optimal. Its products and services are available to customers in more than 50 countries.

Read: Caisse co-investing in sustainable energy, AIMCo acquiring U.K. warehouses

“With this financing, CDPQ is supporting the expansion of a young Quebec technology company that ranks alongside some of the fastest growing companies in Canada in recent years,” said Kim Thomassin, executive vice-president and head of investments in Quebec and stewardship for the Caisse, in the release. “The company is well-positioned to maintain this growth and this investment provides the necessary flexibility to develop its products and expand the scope of its innovations.”

In other investment news, Oxford Properties Group, the real estate investment arm of the Ontario Municipal Employees Retirement System, is entering an agreement to build a rental property in Melbourne.

The deal will see Oxford Properties Group, Investa Property Group and the PDG Corp. co-own a yet-to-be-built tower located on the south bank of the Yarra River in the centre of the Australian city. The tower will be constructed by PDG through Indi, a build-to-rent platform founded by Investa.

In a press release, Alec Harper, head of Australia at Oxford, said the investment comes in response to a major housing shortfall facing residents of the country’s second-largest city. “Today’s transaction further delivers on the collective vision of Oxford, Investa and Indi to transform the experience of renting a home in Australia, through greater choice, quality and institutional management expertise. Growing our exposure to the Australian build-to-rent sector represents one of Oxford’s highest conviction investment strategies.”

Read: CPPIB enters rental community joint venture, Caisse invests in supply chain service provider

The Canada Pension Plan Investment Board is entering a joint venture to develop industrial properties in the U.S.

The US$1.1 deal, reached with privately-owned real estate developer Bridge Development Partners, will involve developing industrial assets for long-term ownership in core U.S. markets. The CPPIB owns a 95 per cent share in the joint venture.

It has already secured an initial investment in a 70 hectare industrial site in Florida. The development will include six buildings that will total 250,000 square metres of warehouse space.

In a press release, Peter Ballon, managing director and global head of real estate at the CPPIB, said the acquisition will help meet the U.S.’s growing demand for warehouse space. “We’re pleased to form a new partnership in the growing industrial real estate sector alongside proven developer and operator Bridge, further diversifying our real estate investments across multiple U.S. markets.”

Read: CPPIB invests in clean energy provider, OMERS subsidiary enters industrial property joint venture

The CPPIB is also acquiring a stake in a European public equity fund.

Under the terms of the deal, the CPPIB will invest €360 million for a 20 per cent stake in Atlantic BidCo, a U.K.-based investment fund focused on European public equities. The news follows the publishing of a bid from Atlantic BidCo to acquire the controlling equity of a German bank.

Under the terms of the deal, at least 70 per cent of shares would be sold to Atlantic BidCo. If enough shareholders accept the offer, the deal would still require the approval of European Union regulators in order for it to be finalized.

According to Atlantic BidCo, the objective of the transaction is to support Aareal Bank’s existing strategic ambitions. These include increasing investments across the financial services, real estate, software and payments sectors.

Read: CPPIB-backed fintech stock rebounds after disappointing IPO

Caisse co-investing in sustainable energy, AIMCo acquiring U.K. warehouses

By: Staff
December 16, 2021



The Caisse de dépot et placement du Québec is entering a co-investment collaboration targeting ventures in the sustainable energy sector.

The three-year agreement between the Caisse and the BP-owned investment firm BP Ventures has already resulted in an investment in Bridge to Renewables Inc., which is developing software infrastructure to enable electric vehicles to interact with electricity markets. The company currently provides a platform that empowers electric vehicle manufacturers, fleet operators, charging station networks and renewable electricity generators to work together effectively.

The collaboration will also see the Caisse and BP Ventures make targeted investments in companies involved in improving electrification infrastructure and the adoption of renewable energy, batteries and biofuels.

In a press release, Geneviève Bouthillier, managing director of private mid-market companies and stewardship investing at the Caisse, said it may also target any companies accelerating the transition away from fossil fuels. “Our co-investment in BTR Energy is a good example of what we aim to do with BP Ventures. [We aim to] invest in promising companies that have demonstrated their capability to have a concrete impact in order to propel their growth.”

In other news, the Alberta Investment Management Corp. is acquiring two new logistics warehouses in the U.K.

Developed by Baytree Logistics Properties in 2019, the two units have a combined area of 37,000 square metres and are located on a 13-hectare industrial property in Dunstable.

Both units are already under long-term leases. United Parcel Service, the tenant of the first unit, has a five-year lease. Amazon.com Inc. holds a 15-year lease on the second, which was custom-built for the online shopping giant.

“In addition to solid real estate fundamentals, the buildings’ strong green credentials are important to us and align closely with AIMCo’s commitment to responsible investment,” said Rupert Wingfield, the investment organization’s head of European real estate.

IDEAL, Ontario Teachers' and CPP Investments Further Expand Mexican Infrastructure Partnership

NEWS PROVIDED BY Canada Pension Plan Investment Board

Dec 07, 2021

MEXICO CITY, and TORONTO, Dec. 7, 2021 /CNW/ - Ontario Teachers' Pension Plan Board ("Ontario Teachers'") and Canada Pension Plan Investment Board ("CPP Investments") have entered into a definitive agreement to acquire incremental stakes in Impulsora del Desarrollo y el Empleo en América Latina, S.A.B. de C.V. (BMV: IDEAL B-1) ("IDEAL") at MXN$45.00 per share.

Ontario Teachers' Pension Plan logo (CNW Group/Canada Pension Plan Investment Board)





Under the terms of the agreement, Ontario Teachers' will acquire an additional 8.4% interest in IDEAL, while CPP Investments will increase its investment holding by an additional 1.1%. Following the close of the transaction, Ontario Teachers' and CPP Investments will each own 24.8% of IDEAL's outstanding shares. The closing of the transaction is subject to certain conditions, including obtaining the authorization from the Mexican antitrust authorities (Comisión Federal de Competencia).


IDEAL owns, finances and operates a portfolio of brownfield and greenfield toll road concessions, water treatment plants, multimodal transit terminals and Mexico's largest electronic toll collection systems operator. IDEAL's primary business is in the toll road sector where it operates a portfolio of roads strategically distributed to interconnect key urban centers, ports and production hubs across Mexico.

"We are excited to further deepen our longstanding investment relationship with IDEAL alongside CPP Investments and significantly increase our exposure to high-quality core infrastructure assets in Mexico," said Stacey Purcell, Managing Director, Latin America of Ontario Teachers' Infrastructure & Natural Resources group. "Over the past few years, we have seen firsthand that IDEAL is the premier infrastructure platform in Mexico and believe it is well-placed to continue delivering strong results and growth in the years to come."

In November 2021, FIBRA IDEAL, the infrastructure investment trust managed by IDEAL, indicated plans for a follow-on public offering which may include both a primary and secondary component. FIBRA IDEAL was established in 2020 when Ontario Teachers' and CPP Investments' closed their first direct investment in IDEAL. The FIBRA IDEAL offering, which is anticipated for early 2022, is expected to precede Ontario Teachers' and CPP Investments increased shareholding in IDEAL.

"Our ongoing investment in IDEAL continues to provide CPP Investments with access to a diversified portfolio of real assets with stable cash flows, while also providing the opportunity for future growth through development opportunities in Mexico's infrastructure sector," said Scott Lawrence, Managing Director, Head of Infrastructure, CPP Investments. "We look forward to the ongoing growth of this platform alongside our valued partners."

ABOUT IDEAL

IDEAL is an independent publicly traded company listed on the Mexican Stock Exchange (IDEALB1.MX). IDEAL engages in the development, promotion, operation and administration of infrastructure projects in Mexico and Latin America. IDEAL is one of the largest infrastructure companies in Latin America, with 18 infrastructure concessions in different sectors, including toll roads, water and logistics terminals.

ABOUT ONTARIO TEACHERS'

Ontario Teachers' Pension Plan Board (Ontario Teachers') is the administrator of Canada's largest single-profession pension plan, with C$227.7 billion in net assets (all figures at June 30, 2021 unless noted). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.6% since the plan's founding in 1990. Ontario Teachers' is an independent organization headquartered in Toronto. Its Asia-Pacific region offices are located in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded as at January 1, 2021, invests and administers the pensions of the province of Ontario's 331,000 active and retired teachers. For more information, visit otpp.com.

ABOUT CPP INVESTMENTS

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 20 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, 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 September 30, 2021, the Fund totalled C$541.5 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook or Twitter.

SOURCE Canada Pension Plan Investment Board

For further information: IDEAL: Maria de la Soledad Garcia Dueñas, Investor Relations, T: +52 (55) 11031300 ext. 1473, mgarciad@ideal.com.mx; Ontario Teachers': Hugh Christopher, Senior Manager, Communications, T: +1 647 300 3365, media@otpp.com; CPP Investments: Asher Levine, Managing Director, Communications, CPP Investments, T: +1 929 208 7939, alevine@cppib.com
Related Links

https://www.cppinvestments.com/

USA
CalPERS, nation’s largest pension fund, hits $500B in assets

December 28, 2021

The California Public Employees’ Retirement System is a $380 billion public pension fund.


Jay Mather
Sacramento Bee file

DECEMBER 29, 2021


CalPERS’ market value has reached $500 billion for the first time, a new landmark for the nation’s largest pension fund.

Pension plan statistics show the retirement plan reached $501.63 billion as of Monday night, following a 1.4% increase in the S&P 500 stock index and another 1.4% increase by the Nasdaq. The S&P increase took the stock index to its highest level ever.

Around 50% of CalPERS assets are invested in equities, meaning that stock market swings in the downward direction could quickly drop assets back under $500 billion.

Still, overall upward stock trends have largely been responsible for the rapid market value growth of the CalPERS portfolio in a short period of time.

The pension system’s portfolio reached $400 billion on January 16, 2020 – growing by $100 billion to $500 billion in less than two years’ time.

CalPERS still faces major financial challenges even though its funding level is increasing. The pension plan is estimated to have 80% of the assets it would need to pay claims long-term as of June 30, 2021.

CalPERS CEO Marcie Frost put a positive spin on the asset growth in a statement.

“We’re a long-term investor,” said Frost. ”We plan for successes over years, not one month or one quarter. Our funding level has grown steadily to 80% over the last five years, and we’re on a clear and sustained path to full funding – 100%.”

Overall, CalPERS portfolio gains of more than 20% in the fiscal year ending June 30 2021, increased the fund’s estimated funding level by approximately 10% from a year earlier.

Still, CalPERS has an estimated funding shortfall of more than $120 billion.

A larger asset value of its portfolio also creates added challenges for a pension fund that its own consultants have described as a mega cruise ship–meaning the pension fund is so large that it’s hard to be nimble in making investments.

CalPERS is the largest pension fund in the U.S.

A larger fund also will require more money to be invested in asset classes, such as private equity, that are difficult to source quality investment opportunities.

CalPERS wants to increase its private equity investments because it is the pension fund’s best-returning asset class long-term and short-term. Private equity produced a 43.8% return in the latest fiscal year ending June 30, 2021, while equities showed a 36.3% return.

CalPERS four-year asset allocation starting in mid-2022 calls for its $44 billion private equity portfolio, 9.2% of the portfolio as of July 31, 2021, to go up to 13% of the overall portfolio.

That would mean at a $500 billion market value, CalPERS would need to find more than $21 billion more in private equity investments to meet its investment goal in an environment where there are limited top-quality private equity funds that pay the double-digit returns CalPERS hopes for.

When CalPERS assets were $480 billion on Sept. 30, 2021, it would have needed around $3 billion less to reach its private equity funding goal.

Riot Games to Pay 2,000 Former and Current Female Employees $80M Over Gender Discrimination

Riot Games, publisher of the popular League of Legends video game, 

will pay $100 million to settle a discrimination and harassment case

By Jason Duaine HahnDecember 28, 2021 

CREDIT: ALAMY

Video game publisher Riot Games will pay $100 million to settle a gender discrimination and harassment case in California, pending approval by the court.

On Monday, the California Department of Fair Employment and Housing announced that Riot Games — publisher of the popular League of Legends video game — will pay at least $80 million to more than 2,000 former and current employees who identify as female to settle the class-action lawsuit brought against the Los Angeles-based company in 2018.

"This historic agreement reflects California's commitment to strategic and effective government enforcement of the State's robust equal-pay, anti-discrimination, and anti-harassment laws," DFEH director Kevin Kish said in a statement.

"If entered by the court, this decree will compensate employees and contractors affected by sex discrimination and harassment, ensure lasting change in this workplace, and send the message that all industries in California, including the gaming industry, must provide equal pay and workplaces free from discrimination and harassment," he added.

In August 2018, video game news website Kotaku published a report on Riot Games that alleged sexism and a "bro culture" that made it near impossible for women to enter leadership roles at the company. It also alleged an interview process some female job candidates went through that sought to prove they played video games and fit into the company's culture.

"I hear people comparing two candidates of different genders, and both the candidates can be of the same caliber, and interview the same way, but be described differently," one woman told the outlet.

Three months after the report's publication, a group of former employees launched their lawsuit against the company, USA Today reported.

With $80 million of their $100 million settlement going to former and current employees, the remaining $20 million will be used for legal fees and other expenses, Riot Games said in a statement.

"While we're proud of how far we've come since 2018, we must also take responsibility for the past," the company said in part on Tuesday, following the agreement.

"We hope that this settlement properly acknowledges those who had negative experiences at Riot and demonstrates our desire to lead by example in bringing more accountability and equality to the games industry," Riot Games' statement continued.

According to the New York Times, it originally appeared the company would pay a $10 million settlement, but the DFEH and Division of Labor Standards Enforcement agencies intervened in 2020 and argued the company should pay over $400 million.

Riot Games is owned by Tencent, the Chinese Internet-based platform company.

Some Minneapolis workers, including snowplow drivers, could go on strike

After IUOE Local 49 voted down the city's latest deal, the door was open for a strike on Tuesday.


Author: Devin Ramey

KARE 11
Updated: December 28, 2021

MINNEAPOLIS — A local charter of a construction worker union announced that the union, including some snowplow drivers, could soon go on strike if a deal can't be reached between them and the city of Minneapolis.

On Sunday night, members of the International Union of Operating Engineers (IUOE) Local 49 voted down the city's last contract offer and filed an intent to strike with the Minnesota Bureau of Mediation Services.

A union spokesperson told KARE 11 Monday morning that the workers would not go on strike on Tuesday as originally planned. The union now has meetings set with the city for Jan. 5 and the Minneapolis Airports Commission on Jan. 11.

The IUOE clarified Monday afternoon that the union filed the intent to strike two weeks ago and its members will vote again on a deal with the city on Jan. 5 and no strikes will happen before then.

The charter represents more than 110 equipment operators and mechanics in the city. The workers help build and maintain everything from water treatment plants to the roads and traffic lights, including plowing the roads of snow.

The union said in a statement that, "Our members, in conjunction with other frontline workers, deliver the services necessary for Minneapolis to function."

IUOE Local 49 Business Manager Jason George said that the union's members stayed on the job during a global pandemic and civil strife and ongoing negotiations is about respect for those workers.

“We are evaluating our options to ensure our members get the respect they have earned," he said in a press release.

IUOE Local 49 members who work for the Minneapolis Airports Commission also voted last week to authorize a strike, which could begin as soon as Jan. 25.

"While management was working from home, our members were on the job, ensuring the airport stayed open and running. Management needs to step up and deliver fair compensation for their employees," the union wrote.

On Tuesday, the Minneapolis Airports Commission released the following statement:

“The Metropolitan Airports Commission continues to negotiate in good faith with the International Union of Operating Engineers Local 49, and we are confident we can reach an agreement. While the union’s news release indicates members’ pay was frozen early in the pandemic, the fact is that members received a 3 percent pay increase.

We look forward to continuing discussions with union representatives during mediation meetings on January 11.”

The International Union of Operating Engineers (IUOE) Local 49 was founded in 1927 and the charter ranges from Minnesota to the Dakotas. The union represents more than 14,000 workers, mainly in the construction industry.