Longtime senior industry executive Daniel Fournier has been named to succeed Michael Turner as the president of Oxford Properties Group, when Turner vacates the role he has held for the past five years on April 1.
The announcement was made late Wednesday morning by OMERS – Oxford is the pension plan’s real estate arm, overseeing more than $82 billion worth of global assets.
“For over 13 years, five as president, Michael has dedicated himself to our outstanding global real estate success story,” said Blake Hutcheson, president and chief executive officer of OMERS, in the announcement.
“He and his team of extraordinarily talented people have overseen an important period of growth for Oxford, diversifying our business, building capabilities and expanding into new markets and sectors.
“I sincerely thank Michael for his commitment to Oxford and to OMERS members.”
Turner will remain involved with Oxford, focusing on its U.S.-specific strategies.
In a statement sent to RENX, Oxford offered praise for Turner’s years as its president.
“Under Michael’s leadership, Oxford has diversified its global real estate portfolio, entered new markets and sectors, and added new capabilities through the acquisition of multiple real estate businesses,” the statement says.
“We thank Michael for his commitment and passion to Oxford for more than a decade, and are grateful for his continued assistance across a number of U.S.-specific strategies.”
Fournier an industry veteran
Fournier is an experienced and well-known real estate leader with over 40 years of experience in the industry. From 2010 to 2019, he served as chairman and chief executive officer of Ivanhoé Cambridge, a Canadian-based global real estate subsidiary of Caisse de dépôt et placement du Québec (CDPQ).
“We are delighted to welcome Daniel Fournier to the Oxford team. Mr. Fournier’s extensive experience, track record of success and in-depth knowledge of global real estate investing will be an invaluable asset to Oxford as we enter this next phase of growth across the globe,” Hutcheson said in the announcement.
During Fournier’s tenure at Ivanhoé Cambridge, it grew into one of the world’s largest and institutional investors.
Since his retirement, Fournier has served on several boards and advisory boards of Quebec-based companies including Claridge, Groupe Maurice, Simons and BTB REIT.
“It is truly an honour and a privilege to join such an outstanding organization which I have always admired for its purpose-driven approach and world-class talent,” Fournier said in the announcement.
"I look forward to working with the team at Oxford as we continue to grow their iconic portfolio of assets and platforms around the world.”
Prior to joining Ivanhoé Cambridge, he was the chair of engineering consulting firm Genivar, now WSP Global, and a member of the board of national retailer Canadian Tire.
He was also a director of the Summit Industrial Income REIT and of Standard Life (Canada), now Manulife.
He has also actively supported numerous communities and organizations, including as chair of several fundraising campaigns for La Maison du Père, the Lighthouse Children and Families and the Institute for Research in Immunology and Cancer (IRIC).
He also co-chaired the $43-million Leading the Way fundraising campaign for Bishop's University in Montreal. Most recently, he was chair of the McCord Museum Foundation in Montreal and in August 2020 he was named Chancellor of Bishop’s University.
Fournier holds a bachelor of arts in history from Princeton University and a bachelor of arts in jurisprudence from Oxford University (1980), where he studied as a Rhodes Scholar.
He also had a stint as a professional football player with the CFL’s Ottawa Rough Riders.
About Oxford, OMERS
Oxford Properties Group is a global real estate investor, asset manager and business builder.
Established in 1960, Oxford and its portfolio companies manage approximately $82 billion Cdn worth of assets across four continents on behalf of their investment partners.
Oxford’s owned portfolio encompasses office, logistics, retail, multiresidential, life sciences, hotels and credit in global gateway cities and high-growth hubs. It invests in properties, portfolios, development sites, debt, securities and real estate businesses across the risk-reward spectrum.
Together with its portfolio companies, Oxford is one of the world’s most active developers with over 100 projects currently underway globally across all major asset classes.
Founded in 1962, OMERS is one of Canada’s largest defined benefit pension plans, with $121 billion in net assets as of Dec. 31.
OMERS is a jointly sponsored pension plan, with 1,000 participating employers ranging from large cities to local agencies, and over half a million active, deferred and retired members.
Members include union and non-union employees of municipalities, school boards, local boards, transit systems, electrical utilities, emergency services and children’s aid societies across Ontario.
OMERS teams work in Toronto, London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities across North America and Europe originating and managing a diversified portfolio of investments in public markets, private equity, infrastructure and real estate.
James Bradshaw of the Globe and Mail also reports OMERS names new head of Oxford Properties:
Ontario Municipal Employees Retirement System has hired Daniel Fournier as the new leader of its real estate arm, Oxford Properties Group, drawing the former head of a rival out of retirement to replace its departing president.
Mr. Fournier will take over as executive chair of Oxford Properties on April 1. He is a real estate veteran who was previously chairman and chief executive officer of Ivanhoé Cambridge, the property subsidiary of the Caisse de dépôt et placement du Québec, from 2010 to 2019.
He will succeed Michael Turner, who will step down after five years as president of Oxford Properties, but will continue to be involved in the group’s U.S. strategies, according to a news release.
Mr. Turner has “overseen an important period of growth for Oxford,” OMERS CEO Blake Hutcheson said in a prepared statement. Mr. Turner led Oxford for five years, and spent most of his career at the property fund working in a low interest-rate environment that has been upended by aggressive central-bank rate hikes. Prior to assuming the top job at Oxford in 2018, he was in charge of its Canadian operations. In that role, he had worked closely with Mr. Hutcheson to develop the fund’s strategy of investing in major urban centres including Paris and London.
Mr. Fournier, who is in his late 60s, is returning to the helm of a major global real estate investor after more than three years spent serving on boards of directors and advisory boards at Quebec-based companies, including private equity firm Claridge Inc., fashion retailer Simons and BTB REIT.
In nearly a decade at the helm of Ivanhoé Cambridge, he was credited with consolidating the Caisse’s real estate portfolio and turning Ivanhoé into a global player. He was also at the helm when Ivanhoé developed new malls as online shopping started to become more popular. In his last few years at the fund, Ivanhoé tried to whittle down its portfolio of shopping centres across Canada.
“Mr. Fournier’s extensive experience, track record of success, and in-depth knowledge of global real estate investing will be an invaluable asset to Oxford as we enter this next phase of growth across the globe,” OMERS’s Mr. Hutcheson said.
OMERS’s real estate assets, which make up 17 per cent of its investment portfolio, earned a 9.9-per-cent return in the first half of 2022, buoyed by higher valuations and development profits from North American industrial real estate. In 2021, Oxford Properties earned investment income of $2.5-billion on a net return of 15.9 per cent.
Earlier today, OMERS issued a press release stating Daniel Fournier has been appointed to lead Oxford Properties Group, effective April 1, 2023:
Toronto, February 8, 2023 – Today OMERS announced the appointment of Daniel Fournier to lead the Pension Plan’s real estate arm, Oxford Properties Group (“Oxford”), in the role of Executive Chair. Mr. Fournier will succeed Michael Turner effective April 1, 2023, as Michael steps out of the role of President to focus his efforts on helping Oxford drive success across a number of its US-specific strategies.
“For over thirteen years, five as President, Michael has dedicated himself to our outstanding global real estate success story,” said Blake Hutcheson, President and Chief Executive Officer of OMERS. “He and his team of extraordinarily talented people, have overseen an important period of growth for Oxford, diversifying our business, building capabilities, and expanding into new markets and sectors. I sincerely thank Michael for his commitment to Oxford and to OMERS members.”
“We are delighted to welcome Daniel Fournier to the Oxford team. Mr. Fournier’s extensive experience, track record of success, and in-depth knowledge of global real estate investing will be an invaluable asset to Oxford as we enter this next phase of growth across the globe,” added Mr. Hutcheson.
Daniel is a highly respected real estate leader with over 40 years of deep real estate experience. From 2010 to 2019 he served as Chairman and Chief Executive Officer of Ivanhoé Cambridge, a Canadian based global real estate subsidiary of Caisse de dépôt et placement du Québec (CDPQ).
“It is truly an honour and a privilege to join such an outstanding organization which I have always admired for its purpose-driven approach and world-class talent. I look forward to working with the team at Oxford as we continue to grow their iconic portfolio of assets and platforms around the world,” said Mr. Fournier.
Daniel Fournier Bio:
Daniel Fournier has more than 40 years of business experience, primarily in the real estate industry. Between 2010 and 2019, he served as Chairman and CEO of Ivanhoé Cambridge, a real estate subsidiary of Caisse de dépôt et placement du Québec (CDPQ).
During his tenure, Ivanhoé Cambridge grew into one of the world’s largest and most respected institutional investors. Following his retirement from Ivanhoé Cambridge, Daniel Fournier served on several boards and advisory boards of Quebec-based companies including Claridge, Groupe Maurice, Simons and BTB REIT.
Prior to joining Ivanhoé Cambridge, he was the Chairman of the Board of engineering consulting firm Genivar, now WSP Global, and a member of the Board of Directors of national retailer Canadian Tire. Daniel was also a Director of the Summit Industrial Income REIT and of Standard Life (Canada), now Manulife.
Throughout his career, Daniel actively supported numerous communities and organizations. He chaired several fundraising campaigns for La Maison du Père, the Lighthouse Children and Families and the Institute for Research in Immunology and Cancer (IRIC). He also co-chaired the $43 million Leading the Way fundraising campaign for Bishop's University. Most recently, he was the Chairman of the Board of Trustees of the McCord Museum Foundation in Montreal and in August 2020, he was named Chancellor of Bishop’s University.
Daniel Fournier holds a Bachelor of Arts in History from Princeton University (1977) and a Bachelor of Arts in Jurisprudence from Oxford University (1980), where he studied as a Rhodes Scholar. He took a term off to play for the Canadian Football League’s Ottawa Rough Riders.
About Oxford Properties Group
Oxford Properties Group (“Oxford”) is a leading global real estate investor, asset manager and business builder. It builds, buys, and grows defined real estate operating business with world-class management teams. Established in 1960, Oxford and its portfolio companies manage approximately C$82 billion of assets across four continents on behalf of their investment partners. Oxford’s owned portfolio encompasses office, logistics, retail, multifamily residential, life sciences, hotels and credit in global gateway cities and high-growth hubs. A thematic investor with a committed source of capital, Oxford invests in properties, portfolios, development sites, debt, securities and real estate businesses across the risk-reward spectrum. Together with its portfolio companies, Oxford is one of the world’s most active developers with over 100 projects currently underway globally across all major asset classes. Oxford is owned by OMERS, the Canadian defined benefit pension plan for Ontario's municipal employees. For more information on Oxford, visit www.oxfordproperties.com
About OMERS
Founded in 1962, OMERS is one of Canada’s largest defined benefit pension plans, with $121 billion in net assets as at December 31, 2021. OMERS is a jointly-sponsored pension plan, with 1,000 participating employers ranging from large cities to local agencies, and over half a million active, deferred, and retired members. OMERS members include union and non-union employees of municipalities, school boards, local boards, transit systems, electrical utilities, emergency services and children’s aid societies across Ontario. Contributions to the Plan are funded equally by members and employers. OMERS teams work in Toronto, London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities across North America and Europe – serving members and employers and originating and managing a diversified portfolio of high-quality investments in public markets, private equity, infrastructure, and real estate.
Alright, this is a HUGE move for OMERS and Oxford Properties and I promised my 17,000+++ LinkedIn followers that I will not hold back.
Not to worry, I'm not going all Kanye West here but will pretty much state the way I read this move (why do pension people get tied up in knots when I promise not to hold back, lol).
First, and I have been repeating this many times lately, we are heading toward a terrible global recession, a very hard landing unlike anything we've seen in over 40 years.
Yes, I'm aware of what US Treasury Secretary Janet Yellen said on Monday:
U.S. Treasury Secretary Janet Yellen on Monday said she saw a path for avoiding a U.S. recession, with inflation coming down significantly and the economy remaining strong, given the strength of the U.S. labor market
"You don't have a recession when you have 500,000 jobs and the lowest unemployment rate in more than 50 years," Yellen told ABC's Good Morning America program.
"What I see is a path in which inflation is declining significantly and the economy is remaining strong."
Guess what? She's categorically wrong, and she knows it, but had to play politics right before President Biden's State of the Union address Tuesday night:
Total BS! The US is already in a recession, a really bad one which will be deep and last a while! Yellen is talking up the economy right before tomorrow night's State of the Union (after which stocks will sell off): https://t.co/mS5IHi53r9 via @YahooFinance
— Leo Kolivakis (@PensionPulse) February 6, 2023
“You don’t have a recession when you have the lowest unemployment rate in 53 years.” - Janet Yellen
— Michael Lebowitz, CFA (@michaellebowitz) February 6, 2023
100% false. pic.twitter.com/Mo1X6Da3Sc
Who else is dead wrong? Goldman Sachs which stated this week that they only see a 25% chance of a US recession in the next 12 months:
Ok, now I know the US economy is entering a major recession over the next twelve months with 100% probability...it's a done deal!! 😁
— Leo Kolivakis (@PensionPulse) February 6, 2023
I don't know what hopium these Goldman economists are smoking but they too know what lies ahead and are too petrified to say it like is. Trust only yours truly, Trahan and others, a really hard landing lies ahead:
8 times this fell by this much.
— Jeff Weniger (@JeffWeniger) February 9, 2023
8 times it marked a recession.
Leading Indicators divided by Lagging Indicators.
It's falling and falling and falling.
Recession. pic.twitter.com/9SUnQmf5EV
"USA OECD Leading Indicators" continues to move lower, 98.4139 vs. 98.4884 last month. Leading indicators include economic variables that tend to move before changes in the overall economy. These indicators give a sense of the future state of an economy. pic.twitter.com/IH4dzFEhzr
— Randy Woodward (@TheBondFreak) February 6, 2023
Services are still keeping us from recession, say thank you to excess savings, as long as they are still there. (BBG) pic.twitter.com/LQDj2jEG97
— Michael A. Arouet (@MichaelAArouet) February 6, 2023
The housing market is already plummeting with unemployment at a 53-year low, imagine the catastrophic consequences when unemployment begins to surge.
— HOZ (@MFHoz) February 5, 2023
The situation could even get more dire than the 2008 housing crisis, if not equal to it. pic.twitter.com/9vsCu6Vv9G
Yes, the latest ISM print is legit. It is in line with other leading indicators of the business cycle, including CEO confidence. Why are these series moving lower? They're digesting the lagged effects of higher rates. As an fyi, these two series are leading indicators of S&P EPS. pic.twitter.com/WUv1ZzgzRw
— Francois Trahan (@FrancoisTrahan) February 8, 2023
It's fashionable to talk about a soft landing lately, BUT every leading relationship I track for the economy seems consistent with a recession?!? This shows lending standards by U.S. banks. A full 43% of banks are now tightening lending standards, up from 0% a mere 15 months ago. pic.twitter.com/DCJE0KUreD
— Francois Trahan (@FrancoisTrahan) February 6, 2023
We should not be surprised by today's unemployment rate. After all, Initial Jobless Claims are still unusually low and that is the leading indicator of employment. So, Claims will have to rise before we can start thinking about the unemployment rate trending higher. pic.twitter.com/Z9mPuIdWub
— Francois Trahan (@FrancoisTrahan) February 3, 2023
JPMorgan Chase & Co has cut hundreds of mortgage employees hours after the company announced plans to hire some bankers.https://t.co/oxbkhbi8ux
— Business Today (@business_today) February 9, 2023
Disney to lay off 7,000 workers, cut $5.5 billion worth of costs in latest reshuffle https://t.co/3VsZi0IYLe via @YahooFinance
— Leo Kolivakis (@PensionPulse) February 9, 2023
I keep telling smart people here that employment is a lagging indicator.
Companies don't lay off people because of one bad earnings report, but when they get several of them, layoffs start piling up (CFOs start worrying about their own job then).
That's why the credit markets and stock markets lead and are leading indicators, and right now we are entering the brutally cold phase of the bear market and we might see a private debt crisis very soon.
By this time next year, US unemployment rate will easily be at 7% and possibly higher.
"Geez Leo, every time I read you and Trahan lately, I want to slit my wrists! Please tell me some good news, what does Blake have to say, he's a lot more upbeat and optimistic and far more pleasant to listen to than you!"
No worries, I'll get to Blake below but all you pension leaders reading me, including Blake Hutcheson, Daniel Fournier, Ralph Berg and their Maple 8 peers counterparts need to be prepared for a nasty and prolonged global recession.
And as I've stated, all asset classes will get hit, public and private, it's definitely not going to feel like a walk in the park.
This is why I tell every CEO and CIO I speak with: "You'd better make sure you have the right leaders in every single position or you're going to regret it in a huge way."
There are going to be some really tough decisions taken at all of Canada's large pension funds and plans and I wouldn't be surprised if more shakeups are coming very soon.
In fact, I'd be very surprised if I don't get contacted by corporate communications people to tell me another big announcement is on the way.
Last week, I discussed how Ralph Berg was appointed Chief Investment Officer at OMERS effective April 1, 2023 and how Maxime Aucoin was appointed Executive Vice-President, Depositors and Total Portfolio and how David Latour was named Executive Vice-President, Risk Management at that organization to succeed Claude Bergeron who is retiring after 35 years there (35 years, wow!!).
You can read my comment here where I shared a lot including this:
Maybe Sabia told Maxime not to hire me, maybe, who knows and who cares!
[Note: Sabia didn't even realize his most senior executive assistant was part of a full-fledged cult here in Quebec and tried to recruit me in it one day in a sneaky way. Very nice lady but till this day, my wife gets a kick out of that story and how I told these cult leaders I know more than them about facing real adversity and getting through life's most difficult moments. What a scam and waste of time that presentation was, when they followed up with a call, I told them to get lost!].
She was a very nice lady but she was out of it and picked the wrong guy to recruit to a cult. I even told those cult people: "You should pay me to speak at these events, I know more about facing hardship and adversity in life than all of you (idiots) put together!".
Michael Sabia had no clue, none whatsoever that his most senior executive assistant reading personal emails and highly classified and confidential emails coming to him from government authorities and senior business leaders was part of a Quebec based cult.
Holy moly!! My wife and I FREAKED!!
I'll tell you what else Michael Sabia didn't know much about: MARKETS!!
I'm amazed at how CEOs of any large pension funds can be appointed to such an important position and know little to nothing about stocks, bonds, derivatives, credit markets, commodities, hedge funds, private equity, real estate, infrastructure and natural resources.
Now, to be fair to Sabia, his predecessor Henri-Paul Rousseau had a Ph.D. in Economics, is brilliant, and even he was completely unaware of the risks Luc Verville was taking buying up billions in ABCP from all the brokers that wined and dined him and the risks Christian Pestre took with his "exotic" long-term swaps strategy using the Caisse's balance sheet.
And neither did Rousseau's risk team headed up by Richard Guay who holds a Ph.D. in Finance and a CFA (very nice guy but totally clueless about the embedded risks at the Caisse at the time or maybe he knew and couldn't talk because it would cost him his job...was CEO for a few months then left on "burnout" and is now back at academia teaching where he belongs).
Hell, I remember a lunch I arranged with Pestre and two prominent low-key Montreal allocators where he was looking to start his own hedge fund and asked for my help. After patiently listening to him, one of them, Simon, looked at Pestre and told him flat out: "Stay where you are, nobody would ever be crazy enough to seed such a strategy, you need a huge balance sheet and lots of luck!"
Those guys knew what they were talking about and told me after that lunch that they were mortified the Caisse was allowing such a strategy to take place (little did they know, Pestre made sure nobody in the middle office and risk could decompose his trades and he had full immunity from Rousseau who foolishly thought highly of him).
To be even more fair to Michael Sabia, he built the REM (was his baby and vision, Macky Tall just carried it out), promoted a few competent women to high level positions and he surrounded himself with competent people (for the most part) and he knew how lucky he was during his tenure at CDPQ.
I only ran into him once face to face, at Andrew Molson's Christmas party, and even told him in front of his wife: "Michael do you realize how lucky you are to have never experienced a financial crisis while at the helm of the Caisse?".
Sabia literally wiped his eyebrows and blurted: "Phew, boy do I ever know how lucky I am!" (Adam Adamakakis was standing right beside me and can vouch that I'm telling the truth).
When I tell you I can write a book on the NONSENSE I've witnessed at CDPQ and then PSP in my short but jam packed pension career, I can write a book and it will leave you all with your mouths open and floored.
No reporter will ever come to interview me because it will cost them their career but it's alright, Pension Pulse is my outlet and boy do I have a lot to say which is why you all read me.
No sanitized corporate BS, just my pure, unbridled, raw authentic thoughts which you will never read anywhere else.
Remember, if you can't handle the truth DO NOT READ PENSION PULSE!
LOL! That's right, this isn't a place for wimps where I coddle you, spread a bunch of ESG fluff to make you feel better about the world we live in.
Forget McKinsey, Goldman and all these high priced consultants and brokers who rake in millions to peddle nonsense, this is the blog to read when you want to know the truth, the frightening and sometimes brutally ugly truth.
That brings me back to Daniel Fournier and why he was appointed to lead Oxford Properties effective April 1st, 2023.
It's the same time that Ralph Berg will become the new CIO at OMERS.
This isn't a coincidence, this will be after OMERS reports very decent numbers for last year at the end of the month.
Forget 2022, it's over, now is the time to rally the troops and focus on 2023, 2024 and possibly 2025.
There is a major global economic storm headed our way and you'd better be prepared for it and have the right people with the right qualifications in charge.
I'm talking to you Blake, Deb, Barb, John, Jo, Charles, Bert, Jeff, Evan, Peter and Gordon!
Speaking of Gordon, if he had only listened to me back in 2006, PSP would have made billions in 2008, not lose billions and this bloody blog would never have existed (it's alright, life is a journey and you have to enjoy every bit of it because then we die and it's over!)
Instead, he listened to his senior minions, including André Collin who used him and then went off to join Grayken at Lone Star where he still is, making off like a bandit (by my estimates, his net worth is now over a quarter of a billion dollars).
Did I ever tell you the time I first met André Collin? At the time, his office was next to mine at PSP, it was right before the 2004 Euro Cup where Greece stunned the world, and Gordon introduced us.
The guy was nice and pleasant but every time I talked with him, his shifty beady eyes reminded me of a great white shark or snake's eyes, piercing right through me (his smile was also eerie, a bit psychopathic like he was getting ready to chop you up).
I kid you not! There was something soulless and sinister in that man's eyes and I knew he didn't trust me and boy did I not trust him!
He kept telling me how Cadim "produced the best risk-adjusted returns at the Caisse" when he was in charge and I nodded in agreement thinking "this guy must think I am a total moron".
In 2005, I circulated this CNN article to PSP's senior executives on how Colony Capital’s Tom Barrack, arguably the world's greatest real estate investor at the time, was methodically selling off his US real estate holdings as prices drove the market to nosebleed levels, emphasizing this passage:
"I feel totally safe playing polo on a field full of pros," says the bronzed 58-year old. "But when amateurs are all over the field, someone can get killed. They have more guts than brains. They charge after every ball and don't know when to hold back."
It's the same with U.S. real estate right now. "There's too much money chasing too few good deals, with too much debt and too few brains." The amateurs are going to get trampled, he explains, taking seasoned horsemen, who should get off the turf, down with them.
Says Barrack: "That's why I'm getting out."
I then did research on CDO-squared and cubed issuance which was off the charts and told Gordon "we are taking huge risks at PSP" (the rest is history!).
I'll also never forget the time we were at a board meeting and Carl Otto (board member at the time who passed away in 2012) asked me if I thought the real estate benchmark Collin and his team were using "reflected the risks they were taking."
I was put on the spot, so looked at Gordon, who told me: "Answer the question Leo."
So I did: "Well Mr. Otto, no, the real estate team is taking a lot of opportunistic risks which aren't reflected in their T-bills + 500 basis points benchmark."
A big hush overcame the room. Collin's shifty shark/ snake eyes were piercing right through me.
I'll never forget what happened next.
Gordon asked me to step out of the board meeting and go stand outside the room for a minute.
I heard some back and forth bantering, something was going on.
Anyway, Lisette who was Gordon's executive assistant at the time, came to get me and told me to come back into the meeting.
To my surprise, the real estate benchmark was not changed but Carl Otto and Jean Lefebvre (another board member), abstained.
Later that day, when Gordon gave a lift back home (he lived down the street from me on Kindersely in Town of Mount-Royal), he told me what happened.
Basically, when he hired Collin from Cadim to run PSP's Real Estate team, they shook hands that the benchmark will be T-bills + 500 basis points.
As Gordon told me: "It was a golden handshake and I never go back on my word, it was part of his conditions to come head up Real Estate at PSP" (not exactly, Gordon once told me on a plane back to Montreal as long as he's CEO, I never have to worry about anything and then I got a rude awakening in October 2006 but it's all water under the bridge now, at least for me it honestly is. Gordon was right about one thing, I'd come out of that much stronger and after 26 years of battling MS, I can take on the world now!!).
So basically, Collin got an easy benchmark to trounce, which he did, made a few millions at PSP and then walked over to Lone Star after investing billions with them to make real money (are you following me so far?).
Good for him, he managed to skirt all governance rules and is by far the most successful pension executive to cross the street and work at an alternatives firm (there are others but they weren't as successful as Collin, nowhere near).
But he had to sell his soul to Grayken to pocket those millions so he earned them in a sense because he will never get those years or his health back (if you think Collin is a shark, Grayken is killer whale that eats great white sharks' livers for fun).
The good news for Grayken and Collin is a major global economic recession, borderline depression, is headed our way, so they will get one last hurrah at making billions and they will, I guarantee it (don't trust them but wouldn't flinch to allocate huge money to Lone Star now).
And the good news for PSP is André Collin had the good sense to hire Neil Cunningham as his second in command and Neil was then appointed CEO by the Board to keep a steady ship after the André Bourbonnais fiasco where turnover was unacceptably high (even worse than when I left PSP where turnover reached 38%).
André Bourbonnais also crossed over to the asset management side, probably because he knew the ax was coming, so he called Mark Wiseman at BlackRock who got him in there where he's still at (to his credit, Bourbonnais got private debt passed as an asset class at PSP).
I tell you, I've got to write a book, one of these days I will write a book on al the nonsense I've witnessed and heard of at every pension I cover (they all have skeletons).
Alright, back to Daniel Fournier and the end is coming, I promise.
He is a friend of Blake's, they go way back when Blake was running Oxford Properties. Blake trusts Daniel Fournier and has spoken very highly to me about him in the past when I wrote a few comments criticizing Fournier for not diversifying Ivanhoé Cambridge's portfolio fast enough away from Retail when he was at the helm of this organization."
Blake told me back then: "Dan is a really smart and good guy. He's a great leader, you should meet him."
To be fair to Fournier, I never did meet him and ask him some of the tough questions I had like why they weren't scaling out of Retail faster.
One guy who did work with him, Marc Jussaume, texted me this earlier today:
Far away from me but as I recall DF (Daniel Fournier) had moved massively away, ( I even set aside all the Asian even Russian / East Europe if I recall correctly he had inherited and got rid of) and prior COVID had steered decisively into residential, prime office and big logistics when unfashionable, in retail he only had prized AAA and AA retail save that a seizeup in liquidity in the market occurred as coincidentally he was completing an big exit of AA position which died last minute(though he had gotten rid of Rockland and Champlain Mall, one can ask Cominar)but was not really % retail overweight compared to Teachers Omers etc ,,,, anyhow none of this is my problem.
BTW : You are one of the few to realize that real estate is one giant bond fund subject to its vagaries, and bond market no shit just had a Depression / first one in 74 years; and face it there had also been a ride down with continuous compression of cap rates for the last 10 years which he and CDPQ managed… no need to talk to you about the massive ratcheting up since, the 10 year Feds Treasuries, from April 2020 were Up 350 bps back down to 300 bps, but more importantly to WHERE NOW ? And mortgage rates? Fundamentally and broader scope, unlike 2007 now the QE is into money supply, so what is the Fed’s exit plan considering the new face amount of global debt mass outstanding ? The only answer of course is inflation, but how? How much? And where is the maneuvering room?
I sure as hell would not want Daniel’s job and the ultimate responsibility.
My two cents worth
He added:
You can quote me, no sweat, whatever you want,,, I am an open book and just about everyone will say that I am worse than Ray Dalio at Radical Truth/ Radical Transparency… In fact a former president of the Caisse told me two years ago that “ Marc, tu l’es peut-être trop, très peu de gens acceptent ” … upon reflection two days later I called him, thanked him for his observation, and that reflecting on it and doing the beta correlation in my life plus that he and I certainly never has a disagreement which he agreed, my realization a turn was indeed needed, top guys have no patience for ANY nonsense and the others are irrelevant, SO YES A CHANGE WAS REQUIRED, however in the other direction and that I rather had to double down, and which I am happy about )
Must tell you that with DF for 20 years it was totally seamless, totally direct, completing each other’s sentence, actually a bit frightening some would say.
What I told you above was my two cents worth as to what and how he likely did it and in what context at Ivanhoé Cambridge based on my readings and insight and conversations of prior years; if I’m wrong as to facts or perception or context I’d like be the first to be corrected, from you or from him…. in what I do ? Facts are my only reality
I welcome his appointment, I have not spoken to DF in a long time; I have sent him a congratulatory note upon learning this, with a comment that we were long overdue for our former proverbial hamburger lunches, ,,,, he will undoubtedly call me and we’ll go for one in the diner at 2045 Peel street where in 1983 on a higher floor we initially set up shop in a single 125 sft windowless cubicle office, with no cash, projects in the pipeline or established credit… , seeing that he will have time prior to his new functions I figure we’ll have said burger in the next few weeks
My advice to you? Not the first time you mention wanting to meet him… COVID is over… call him up and go meet him (unless mistaken you had told me you were Loyola, unless I am having a senior moment) as two ex-Loyola guys (unlike you guys I was only CEGEP)… like Nike : Just Do It !
Must tell you two years ago your French was flawless.. Quebec you Greek / me Franco American etc / DF Irish Canadien Français, brilliant!
Or forever hold your breath
Quite a character this Marc Jussaume, never met him, he texts or emails me these long passages whenever news about Fournier pops up.
And just for the record, my French isn't flawless, sadly I have lost a lot of it and I went to Collège Notre Dame, not Loyola for high school (they and especially LCC were our arch enemies at football when I played offensive line for the Notre-Dame Cactus, long before getting diagnosed with MS while completing my M.A. thesis in Economics at McGill).
Some parting thoughts.
First, Michael Turner. I never had the pleasure of meeting him. He's obviously a competent leader but it did strike me negatively that Oxford never once reached out to me (not once!!) even though I kept blogging nice comments about them and their strategy.
Unlike Nathalie Palladitcheff who I did get to interview and they reached out to me, nothing from Michael Turner or Oxford including liking my comments on LinkedIn.
When I told this to Blake, he told me "that's strange" (you're telling me!).
The truth is Michael Turner did a good job but he always came across to me as the type of person who wants all the glory.
He was lucky to have inherited a great portfolio that Blake worked on while leading Oxford for many years and yes, he built on that portfolio which was already highly diversified across sectors and geographies (way ahead of his Canadian peers except HOOPP which also got into logistics very early).
Daniel Fournier is more of a veteran who has seen many, many cycles and you need an older general with experience to lead the troops over the next 3 to 5 years.
Also, Oxford Properties manages third-party money and co-invests with big institutional funds like Norway's Government Pension Fund Global’s (GPFG) which I recently covered here.
Fournier will have to manage these key relationships and also continue to decarbonize the real estate portfolio to meet achieve net zero as soon as possible.
Anyway, I seriously doubt he's taking this high profile position for the money (has enough) but more for the challenge and Blake probably asked him as a friend to take it on during this critical time.
And that shows leadership on Blake's part.
People will criticize him, "why didn't you pick a woman or promote this guy from within?," but the truth is a real leader knows when he has to surround himself with competent people and Blake is doing this with Ralph Berg and now Dan Fournier.
And yes, I will meet Dan Fournier for a lunch at Milos whenever he wants (sorry, I hate breakfast meetings and want to be on markets in the morning).
I'd love to discuss real estate with him and a lot more like football and Oxford where he where he studied as a Rhodes Scholar (through Charles Taylor, I got to learn a lot reading Isaiah Berlin amazing books. including Against the Current, one of my favorites).
One last thing, once Fournier leaves the top job, OMERS can promote from within Oxford and people will not have to wait for a long time to get a top position which is encouraging.
Geez, it's almost 10:30 p.m. and I am heading to bed soon, this is a very long comment packed with anecdotal recollections and trust me, I do NOT have memory selection bias!
Time just flew by on this one, please don't send your lawyers after me as I will bite harder next time!
Below, Ed Pierzak with Nareit joins Michael Bull to discuss key takeaways from the annual outlook report. Read Nareit's outlook here.
And CNBC's Yasmin Khorram joins CNBC's 'Squawk on the Street' to report on the new data from CBRE research that shows that vacancies for commercial real estate in San Fransisco have shot up to a record 27.2%.
Tausche also reports on recent findings regarding risks tied to the U.S. financial markets and news around the United States' Strategic Petroleum Reserve.
Fourth, Jon Gray, president and COO of Blackstone Group, joined 'Squawk on the Street' in December to discuss concerns over the firm's decision to limit redemptions from its Blackstone Real Estate Income Trust, or BREIT.
Gray also recently joined 'Squawk Box' to discuss the company's quarterly earnings results, how he sees the real estate market, and more.
I love Blackstone, its two co-founders (Blackstone comes from Greek "mavri petra" which means “black stone” and Pete Peterson) and think extremely highly of Jon Gray who I still regard as the greatest real estate investor of all time. I would love to meet him for a lunch at Milos in Montreal or NYC one day.
Lastly, let me end this long comment with this classic scene! (hope nobody orders a code red on me😁).