Portfolio investments

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Portfolio investments represent investments in bonds, equity instruments, market funds, fixed income or investments in entities with share capital owned jointly by the government and other governments or organizations to further common objectives. Additional information on these entities is provided in the quarterly report entitled Inventory of Government of Canada Organizations.

Under the terms of Section 147 of the Bankruptcy and Insolvency Act, the Superintendent of Bankruptcy has received shares in a number of corporations in lieu of a cash levy payable to the Crown.

Table 9.10
Portfolio investments
(in dollars)
  April 1, 2022Link to table note 1 Payments and other chargesLink to table note 2 Receipts and other credits March 31, 2023
Environment and Climate Change
Parks Canada Agency
Co-operative Housing Project 100 – – 100
Finance
Department of Finance
Canada Pension Plan Investment Board 100 – – 100
Global Affairs
Department of Foreign Affairs, Trade and Development
BlueOrchard Latin America and the Caribbean Gender Diversity and Inclusion Fund – 37,000,000 – 37,000,000
Canada Investment Fund for Africa 46,512,693 – – 46,512,693
Energy Access Relief Fund 28,000,000 1,958,857 – 29,958,857
Land Degradation Neutrality Fund 51,889,307 4,208,756 – 56,098,063
Mirova Gigaton Fund – 30,350,000 – 30,350,000
ResponsAbility Climate-Smart Agriculture and Food Systems Fund – 33,740,000 – 33,740,000
Subtotal 126,402,000 107,257,613 – 233,659,613
Innovation, Science and Industry
Atlantic Canada Opportunities Agency
Equity investment 6,802,823 – 13,850 6,788,973
Department of Western Economic Diversification
North Portage Development Corporation – 1 – 1
National Research Council of Canada
Equity ownership 3 – – 3
Subtotal 6,802,826 1 13,850 6,788,977
Natural Resources
Department of Natural Resources
Lower Churchill Development Corporation Limited 14,750,000 – – 14,750,000
Treasury Board
Treasury Board Secretariat
Public Sector Pension Investment Board 100 – – 100
Subtotal 147,955,126 107,257,614 13,850 255,198,890
Consolidation Adjustments:
Atomic Energy of Canada Limited 177,970,000 21,451,000 – 199,421,000
Canada Council for the Arts 454,515,000 35,616,000 – 490,131,000
Canada Enterprise Emergency Funding Corporation 500,000,000 – 86,916,000 413,084,000
First Nations Market Housing Fund 360,856,000 – 22,758,000 338,098,000
Other 334,291,000 112,763,000 1,407,000 445,647,000
Subtotal—Consolidation Adjustments 1,827,632,000 169,830,000 111,081,000 1,886,381,000
Subtotal 1,975,587,126 277,087,614 111,094,850 2,141,579,890
Less: allowance for valuation 64,582,128 – – 64,582,128
Total—Portfolio investments 1,911,004,998 277,087,614 111,094,850 2,076,997,762

Co-operative housing project

The Parks Canada Agency has invested in the Rocky Mountain II Co-operative Housing Association, along with three other entities, to provide accommodation for Parks Canada Agency employees and employees of other entities in Banff, Alberta.

Canada Pension Plan Investment Board

The Canada Pension Plan Investment Board (CPPIB) was created pursuant to the Canada Pension Plan Investment Board Act. The CPPIB's objectives are to assist the Canada Pension Plan (CPP) in meeting its obligations to contributors and beneficiaries and to manage any amounts transferred to it in their best interest.

The government holds 100% of the share capital of the CPPIB that consists of 10 shares having a fair value of $10 each issued as per legislation. The assets managed by the CPPIB are included in the CPP financial statements. They are excluded from the government's consolidated financial statements since CPP is not part of the government's reporting entity as explained in Note 1 of the government's financial statements.

BlueOrchard Latin America and the Caribbean Gender, Diversity, and Inclusion Fund

The investment consists of a contribution to the BlueOrchard Latin America and the Caribbean Gender, Diversity, and Inclusion Fund, which will focus on increasing the access to finance to underserved groups by providing financing mainly to financial institutions. The Fund aims on increasing access to finance for women-led and/or -owned micro, small and medium sized enterprises, indigenous groups, people with disabilities, older people and companies at the forefront of implementation of diversity policies.

Canada Investment Fund for Africa

The Canada Investment Fund for Africa (CIFA) is a joint public-private sector initiative designed to provide risk capital for private investments in Africa that generate growth. The CIFA is a direct response to the New Partnership for Africa's Development (NEPAD) and the G8 Africa Action Plan. The main objectives of the CIFA are to optimize public-private investment in the fund, to confer a beneficial development impact on Africa by way of increased foreign direct investment and to optimize the beneficial impact of the fund's activities on Canadian interests.

The Government of Canada is a limited partner in the CIFA and its commitment towards the fund was subject to matching funds of other investors and was to be equal to the lesser of: (i) $100 million or (ii) the aggregated commitments of all other limited partners of the partnership. The investment period in the CIFA ended January 1, 2009. This initiative was finalized during fiscal year 2020. Since its inception, the Canadian International

Development Agency (now amalgamated with DFATD) received capital reimbursement from CIFA amounting to $60,411,356 and investment income of $8,206,021

Energy Access Relief Fund

The investment consists of a contribution to the Energy Access Relief Fund, which was designed to provide loans with a term of up to 3.5 years, subordinated, unsecured and low-cost subsidized loans to companies that had viable business models prior to the COVID-19 pandemic and that are facing liquidity challenges due to the pandemic.

Land Degradation Neutrality Fund

The investment consists of a contribution to the Land Degradation Neutrality Fund, an investment fund initiated to support sustainable land management and land restoration.

Mirova Gigaton Fund

The investment consists of a contribution to the Mirova Gigaton Fund, which is a private debt fund targeting energy access, clean energy transition and climate investments in underserved and emerging markets in developing countries globally, with a strong focus on sub-Saharan Africa.

ResponsAbility Climate-Smart Agriculture and Food Systems Fund

The investment consists of a contribution to the ResponsAbility Climate-Smart Agriculture and Food Systems Fund, which aims to provide long-term expansion debt to innovative businesses operating in the food value chain in Asia Pacific, Latin America and Africa, with the goal of mitigating climate change, reducing food loss and promoting climate change resilience of smallholder farmers.

Equity investment

In order to help fulfill its mandate to promote economic development in the Cape Breton Region of Nova Scotia, Enterprise Cape Breton Corporation (ECBC) had taken equity interests in several companies to help the organizations expand or innovate.

Upon ECBC's dissolution on June 19, 2014, all of ECBC assets and obligations, except real property, were transferred to the Atlantic Canada Opportunities Agency (ACOA). ACOA has been given the authority to hold or exercise, or surrender, sell, assign or otherwise dispose of, a stock option, share or other similar financial instruments that it acquires from ECBC or any of its subsidiaries.

North Portage Development Corporation

The Corporation was incorporated under The Corporations Act of Manitoba, to foster the social and economic development of the North Portage area in the core area of Winnipeg. The objective of the government's participation is to stimulate economic recovery in Canada and Manitoba.

The government's holding of common shares represents 33.3% of the shares outstanding. The Corporation is owned equally by the City of Winnipeg, the Province of Manitoba and the Government of Canada. There are 3 common shares issued, having a par value of $1 each.

Equity ownership

In order to help fulfill its mandate to promote industrial innovation in Canada, the National Research Council of Canada (NRC) has taken equity interests in several new firms based on NRC technology. NRC provides financial assistance at better than market conditions to firms through access to equipment, intellectual property and incubation space in laboratories and in the organization's Industry Partnership Facilities.

Since these companies often cannot afford to pay the full cost of the assistance received from the NRC, the NRC takes an equity position in a company in order to help the firms survive the critical development stage. In turn, it allows NRC to earn a return that somewhat reflects the risk taken should the company become successful.

This investment in equity is authorized under subsection 92(1)(b) of the Financial Administration Act which allows for the acquisition or the sale or other disposal of shares or assets in the ordinary course of a business of providing financial assistance to publicly and privately held companies and are recorded at cost.

The government's holdings of shares represent a minority interest in two publicly traded companies and one privately held company.

Lower Churchill Development Corporation Limited

The Lower Churchill Development Corporation (LCDC) was incorporated in 1978 under the Companies Act of Newfoundland, with the objective of developing all or part of the hydroelectric potential of the Lower Churchill Basin. It is owned 51% by Newfoundland and Labrador Hydro, the designate for the Government of Newfoundland and Labrador, and 49% by Canada. LCDC is not an active operating company.

Canada owns 1,475 class A shares, which it purchased for $10,000 per share in the initial years of the corporation. Funds were used to finance feasibility studies for proposed Lower Churchill projects. The corporation's only asset was an Option Right to purchase the Gull Island Production Company's assets and acquire hydroelectric development rights on the Lower Churchill River, granted by the Government of Newfoundland and Labrador in exchange for its initial ownership stake, valued at $5,200,000.

The option expired on November 24, 2006, and has not been extended by the province, resulting in an investment write-down for LCDC.

Public Sector Pension Investment Board

The Public Sector Pension Investment Board (PSPIB) is a Canadian Crown corporation established pursuant to the Public Sector Pension Investment Board Act. Its statutory objective is to manage, in the best interests of the contributors and beneficiaries, the funds transferred to it by the Government of Canada since April 1, 2000. These funds represent contributions less benefit payments and other charges related to the Public Service, Canadian Forces—Regular Force and Royal Canadian Mounted Police pension plans, and since 2007 for the Canadian Forces—Reserve Force pension plan, that fall within the Income Tax Act limits. The goal of the PSPIB is to maximize returns on investments without undue risk of loss, while having regard to the funding, policies and requirements and financial obligations of each of the pension plans.

The government holds 100% of the share capital of the PSPIB that consists of 10 shares having a par value of $10 each issued as per legislation. The assets managed by the PSPIB are recorded against the pension obligations since April 1, 2000.

Consolidation adjustment

The consolidation adjustment reflects the investments held by consolidated Crown corporations and other entities. These mainly include investments such as bonds, equity investments, money market funds and fixed income securities. Investments are measured at amortized cost unless quoted in an active market then they are measured at fair value.

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