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.
April 1, 2023 | Payments and other chargesLinks to footnote 1 in table 1 | Receipts and other credits | March 31, 2024 | |
---|---|---|---|---|
Atlantic Canada Opportunities Agency | ||||
Atlantic Canada Opportunities Agency | ||||
Equity investment | 6,788,973 | – | – | 6,788,973 |
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 | ||||
Aequitas Fund | – | 22,735,969 | 83,637 | 22,652,332 |
BlueOrchard Latin America and the Caribbean Gender Diversity and Inclusion Fund | 37,000,000 | 134,146 | – | 37,134,146 |
Canada Investment Fund for Africa | 46,512,693 | – | – | 46,512,693 |
Energy Access Relief Fund | 29,958,857 | – | 946,351 | 29,012,506 |
Land Degradation Neutrality Fund | 56,098,063 | 109,992 | – | 56,208,055 |
Mirova Gigaton Fund | 30,350,000 | 186,455 | – | 30,536,455 |
ResponsAbility Climate-Smart Agriculture and Food Systems Fund | 33,740,000 | 171,028 | – | 33,911,028 |
Subtotal | 233,659,613 | 23,337,590 | 1,029,988 | 255,967,215 |
Innovation, Science and Industry | ||||
National Research Council of Canada | ||||
Equity ownership | 3 | – | – | 3 |
Natural Resources | ||||
Department of Natural Resources | ||||
Lower Churchill Development Corporation Limited | 14,750,000 | – | – | 14,750,000 |
Prairies and Canadian Northern Economic Development | ||||
Department of Western Economic Diversification | ||||
North Portage Development Corporation | 1 | – | – | 1 |
Treasury Board | ||||
Treasury Board Secretariat | ||||
Public Sector Pension Investment Board | 100 | – | – | 100 |
Subtotal | 255,198,890 | 23,337,590 | 1,029,988 | 277,506,492 |
Consolidation Adjustments: | ||||
Atomic Energy of Canada Limited | 199,421,000 | 139,101,000 | 338,522,000 | |
Canada Council for the Arts | 490,131,000 | 65,267,000 | 555,398,000 | |
Canada Enterprise Emergency Funding Corporation | 413,084,000 | 9,922,000 | 423,006,000 | |
First Nations Market Housing Fund | 338,098,000 | 31,796,000 | 369,894,000 | |
Other | 445,647,000 | 63,600,000 | 79,990,000 | 429,257,000 |
Subtotal—Consolidation Adjustments | 1,886,381,000 | 309,686,000 | 79,990,000 | 2,116,077,000 |
Subtotal | 2,141,579,890 | 333,023,590 | 81,019,988 | 2,393,583,492 |
Less: allowance for valuation | 64,582,128 | 5,300,000 | – | 69,882,128 |
Total—Portfolio investments | 2,076,997,762 | 327,723,590 | 81,019,988 | 2,323,701,364 |
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.
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.
Aequitas Fund
The investment consists of a contribution to the Aequitas Fund, which aims to fund international development and help achieve the United Nations Sustainable Development Goals, starting with gender equality and climate action.
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 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) was a joint public-private sector initiative designed to provide risk capital for private investments in Africa that generate growth.
The Government of Canada was a limited partner in the CIFA and this initiative was finalized during fiscal year 2020.
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 COVID-19 and that were 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 ownership
In order to help fulfill its mandate to promote industrial innovation in Canada, the National Research Council of Canada (NRC) takes equity interests in firms based on NRC technology. NRC provides financial assistance at better than market conditions to these firms through access to equipment, intellectual property and incubation space in laboratories and in the organization's Industry Partnership Facilities.
Since these firms often cannot afford to pay the full cost of the assistance received from NRC, NRC takes an equity position in the firms in order to help them survive the critical development stage. In turn, this allows the NRC to earn a return that partially reflects the risk taken should the firms 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 current holdings of shares represent a minority interest in two publicly traded companies and one privately held company. The investments have been reported as impaired in the Public Accounts of Canada, as the firms are no longer active.
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.
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.
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.
Public Accounts of Canada 2024 Volume I—Bottom of the page Navigation
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