CPPIB Lays Off Dozens and Merges Active Equities Division After $6-Billion in Losses
The Canada Pension Plan Investment Board is laying off dozens of employees from its active equities division and merging the unit with its capital markets and factor investing division following significant financial losses, including $3.5 billion in fiscal year 2026.
The Canada Pension Plan Investment Board (CPPIB) is laying off dozens of employees from its active equities division and merging the unit with its capital markets and factor investing division. The restructuring follows years of underperformance by the active equities strategy.
Frank Ieraci, a senior managing director who has led the active equities division since 2020, is among the employees departing. Heather Tobin, who currently leads the capital markets and factor investing division, will lead the combined unit. Some affected employees may find roles in other departments within the organization.
The active equities strategy lost $3.5 billion in CPPIB’s 2026 fiscal year, which ended March 31. Over a five-year period, the division recorded total losses of $6 billion. Across a 10-year span, the unit earned only $1.9 billion in gains. As of June 30, the active equities division held $36.8 billion in assets under management. CPPIB attributed the poor performance partly to losses incurred during the 2022 fiscal year following regulatory changes in China.
CPPIB manages $864 billion in assets on behalf of more than 22 million working and retired Canadians. The overall fund has delivered an average annual return of 8.8 per cent over the past 10 years.