Two Canadian pension plans risk reputation hit from investments in troubled Thames Water

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Two Canadian pension plans risk reputation hit from investments in troubled Thames Water
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Thames Water utility\u0027s troubles plunge OMERS and BCI into the midst of potential rescue plan for troubled asset. Read more

from the U.K.’s pension regulator, as early as this week, according to a July 5 report from the Financial Times, citing people familiar with the situation.

That statement added that the utility’s regulator, Ofwat, is being kept “fully informed on progress of the company’s turnaround and engagement with shareholders” and that Thames Water maintained a strong liquidity position including £4.4 billion of cash and committed funding as at 31 March 2023. Keith Ambachtsheer, a Canadian pension expert and director emeritus of International Centre for Pension Management, said the Thames Water case pokes a hole in the frequent characterization of infrastructure investing as a suitable investment for long-term pension plans and an easy way to generate inflation-linked returns.Article content

The growing scandal at the utility has raised questions in the U.K. about the strategy of privatizing critical utilities.

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