This week we chat with Edwin Cass, Chief Investment Strategist, Canada Pension Plan Investment Board. Mr. Cass is responsible for CPPIB’s overall fund level investment strategy. He also chairs the Investment Planning Committee, which approves all new investment programs and oversees all portfolio risks, including passive, active, credit and liquidity risk.
The Lead Left: Ed, we’re witnessing market turmoil, yet the worries seem to be familiar ones. What’s different now?
Edwin Cass: We have been asking ourselves the same question internally. What we’re seeing now is a series of bad data points in the U.S. The U.S. has been the engine of growth and has made the most progress in terms of economic stimulus. If the U.S. heads into a downturn, then the knock-on effects to the financial system could be pronounced. This comes at a time when oil has taken a further leg down, jeopardizing earnings and further impacting CAPEX.