File photo of Mark Wiseman, President and CEO of the CPP Investment Board.The Globe and Mail
Canada Pension Plan Investment Board has appointed its next leader from within the fund as chief executive Mark Wiseman prepares to join a global asset manager.
CPPIB announced the promotion of Mark Machin to the top job of the country's largest pension fund on Thursday. Mr. Machin, 49, is currently the senior managing director and head of international and Asia at CPPIB, and he will take on the role of CEO and president starting on June 13.
Mr. Wiseman is leaving the pension fund to join BlackRock Inc. the global asset management behemoth that specializes in exchange traded funds and has more than $4.7-trillion in assets under management. His new title will be senior managing director when he formally joins the firm in September, and he will also be part of the executive team. The move follows a deepening personal relationship between Larry Fink, who runs BlackRock, and Mr. Wiseman, who worked together on a recently formed group called Focusing Capital on the Long-Term to preach long-term thinking for major investors.
Mr. Wiseman already has another connection to BlackRock – his partner, Marcia Moffat, is the head of its Canadian business. And the amount of money he is responsible for won't be changing much. As Blackrock's head of global active equity, Mr. Wiseman will oversee a global team that has more than $275-billion (U.S.) in equity-based investment strategies. CPPIB has about $280-billion (Canadian) in assets under management.
Mr. Wiseman, who has worked for CPPIB for11 years and been CEO for nearly four of them, informed CPPIB's board of his plans to take leave early this year. In the months since, the board has undergone a search for his successor, and there were many experienced investment professionals within CPPIB that the board reportedly considered.
Mr. Machin was recruited to CPPIB in 2012 by Mr. Wiseman after spending 20 years working for Goldman Sachs. He at one point led the investment banking business in Asia, outside of Japan, and has been based in the region since 1994. Mr. Machin also very briefly worked as a doctor for a year after graduating from medical school in London.
Mr. Machin became the first president of Asian operations for CPPIB. In the years since, he has taken on an expanded role overseeing more of the pension fund's global investments and relationships while CPPIB added tens of billions of dollars in assets under management to its portfolio.
"I am excited about the direction our senior management team is taking the business," Mr. Machin said in a statement Thursday. "I am particularly pleased to assume the helm at a time when CPPIB is playing an increasingly important role globally, investing and managing the portfolio to ensure the long-term growth and sustainability of the CPP Fund."
"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, chair of CPPIB's board of directors, in a statement. She added that CPPIB would likely remain overweight in its investments in Canada, which makes up about $53-billion of the portfolio now.
In the last several years, CPPIB has broadened its focus on investments internationally, expanding its alternative asset management capabilities outside of Canada and adding offices in financial centres such as London, Sao Paulo and Mumbai.
Mr. Wiseman will stay on to help with the transition for several weeks. A replacement for Mr. Machin's former position has not yet been found and he will continue to oversee Asia in the meantime.
With a file from Tim Kiladze