BGO Portfolio Management and Transactions teams update

Plan sponsors may wish to consider whether this investment news has any implications for the investment options available within their plans. Sun Life Assurance Company of Canada purchases units of the funds listed below, which are established as segregated funds in accordance with the Insurance Companies Act (Canada). 

In September 2024, BGO announced some staffing changes that affect their Portfolio Management team and Transaction teams.

Departure of Associate Portfolio Manager Shishir Nigam

BGO announced that Shishir Nigam, Associate Portfolio Manager (APM) on BGO Prime Canadian Property L.P.¹ (BGO Prime), and Lead Portfolio Manager (PM) for BGO Canadian Real Estate Plus (BGO REP), departed the firm on September 13, 2024. Nigam supported Simon Holmes, PM on BGO Prime, along with four other investment professionals.

Holmes will continue in his role as PM of BGO Prime. He has responsibility for the fund’s strategy, performance, client relations and governance. He joined the PM team for BGO Prime in 2021 and has almost 20 years of investment experience. Holmes and Canadian Chief Investment Officer Christina Iacoucci are conducting a search for a new APM, which will include both internal and external candidates.

BGO has announced that Tunde Akinyemi will replace Nigam on the BGO REP fund as Lead PM. Akinyemi is now in the process of getting regulatory approval to be a PM. Akinyemi has been involved with BGO Prime since he joined the firm in 2021. He has over a decade of experience within the financial industry, previously working on the acquisitions and asset management team for a Toronto-based boutique real estate investment firm.

BGO Transactions team turnover

BGO has allowed its Transactions team to fluctuate in size in recent years based upon its expected level of market trading activity. A few years ago, the team consisted of ten professionals as BGO restructured the portfolio in the wake of the pandemic. It was downsized to seven in 2023, when Michael Fraidakis, Head of Canadian Investments, was among three professionals who was let go. More recently in 2024, Jaclyn O’Neill, Principal, and two analysts have departed. The Transactions team currently consists of six professionals, but BGO plans to increase it to eight or nine in the near future, as they expect to increase transaction activity once again.   

GRS Investment Solutions View:

Over the past four years, there has been significant turnover within the PM team of the two funds.  In 2020, PMs Paul Zemla and Michel Cormier departed BGO. In 2021, we announced that Senior PM Malcolm Leitch and PM Kristin Ede departed the firm. BGO replaced them with John McFadden. We were aware that this was on an interim basis and that McFadden would retire within a few years. BGO announced McFadden’s retirement in 2023, as expected.

While Shishir Nigam‘s departure is a loss for BGO, and reduces the bench strength of the portfolio management team, he was not the key decision-maker on BGO Prime. Nigam focused on data, analytics, and reporting. His PM role on BGO REP focused primarily on managing the liquidity of the fund and managing its allocations to BGO Prime and the liquidity components (listed real estate and cash) in line with targets. Akinyemi’s lack of formal PM experience is a small concern, but like Nigam, his role will focus on primarily on liquidity management.

We have previously communicated that the totality of the senior level departures at BGO over the years has been significant. While some of these departures have been retirements or instigated by BGO, Nigam’s departure is similar to Michel Cormier’s in 2020 and Paul Mouchakkaa’s in 2022, in that he left for another opportunity. We have also seen increased turnover within the Transactions team, with resources being added or removed within short periods of time, and experienced team members like Jaclyn O’Neill departing for a competitor. As a result, we need to closely monitor BGO’s key talent retention and attraction efforts.  

We’re placing the two BGO funds on our Watch List under Additional Monitoring (least severe category) as a result of these changes. We will continue to closely monitor BGO during this transition and provide further updates as necessary.

Do you have to take any action?

You and your members don’t have to take any action as a result of these changes.

Questions?

Please contact your Sun Life Group Retirement Services representative*.