Canada Pension Names Machin to CEO Job as Wiseman Departsby
Wiseman leaves after 11 years for senior role at BlackRock
Machin currently oversees international investments at fund
Canada Pension Plan Investment Board appointed Mark Machin to replace Chief Executive Officer Mark Wiseman, who is joining BlackRock Inc. as senior managing partner.
The appointment of Machin, 49, a former Goldman Sachs Group Inc. banker who heads Canada Pension’s international investments, was confirmed in a statement Thursday. Machin, who was born in the U.K., will become the first foreign-born CEO of the country’s largest pension fund. He will assume the role on June 13.
"Mark Machin has been instrumental in helping to shape and execute CPPIB’s strategy over the last four years, consistently demonstrating deep knowledge of our business, understanding of global opportunities and a commitment to our unique mandate and culture," said Heather Munroe-Blum, chairman of Toronto-based Canada Pension.
BlackRock said in its own statement Wiseman, 45, will run its global active equity division and become chairman of its global investment committee as a senior partner. The firm said he would also be supporting its alternative investors. Wiseman will report to Robert Kapito, president of BlackRock, and join the firm in early September, BlackRock said. Wiseman’s partner, Marcia Moffat, is head of BlackRock Canada.
He will stay on with the pension fund as a senior adviser to the board of directors until then to help smooth the transition.
The change at the top of Canada’s largest pension plan comes less than four years after Wiseman took over as CEO in July 2012.
Machin joined Canada Pension in 2012 from Goldman Sachs, where he was most recently vice chairman for Asia outside Japan and previously ran the investment-banking division in the region, according to the pension fund’s website. He is currently responsible for all the pension fund’s international investment activities, the overall management of its global advisory relationships as well as leading the organization in Asia, the website shows.
His appointment comes at a time when 81 percent of Canada Pension’s investments are outside of Canada, the pension fund said.
"I believe that Mark has all the skills to lead CPPIB through the next chapter of its evolution, " Wiseman said. "His international experience, investment acumen and commitment to the organization make him an unrivaled candidate to lead CPPIB at this time. And, I know that he will be supported by the exceptional team of senior leaders at CPPIB."
Wiseman joined Canada Pension in 2005 after leading the private equity division at Ontario Teachers’ Pension Plan. Since then, he had filled various roles at Canada Pension, including overseeing its public market, private and real estate investments, before being appointed CEO. The fund returned more than 10 percent annually on its investments over the past five years, according to a February filing.
Canada Pension reported Thursday assets under management grew 5.4 percent to C$278.9 billion ($212.7 billion) from a year ago, and up from about C$166 billion when Wiseman took over.
The fund’s investments had a net return of 3.4 percent during the fiscal year ended March 31, down from 18.3 percent a year earlier amid ongoing market volatility, the fund said in a statement. Canadian public and private equities fell 6.4 percent and 4.2 percent, respectively, while public emerging markets equities fell 8.7 percent. Private emerging markets and real estate investments rose 17 percent and 12.3 percent, respectively, over the year.
“Over the past 12 months, despite one of the more challenging investment environments in recent years and predominately negative equity markets, the CPP Fund generated a moderate gain. This outcome demonstrates the benefits of a resilient, highly diversified global portfolio," Wiseman said in the statement.