Tag: canada

• The global average fertility rate is decreasing

  

  According to this recent Bloomberg article, the world is expected to add more than 3 billion people by 2100. At the same time, the global average fertility rate is dropping. In 1960, it was five live births per woman. As of 2017, it had dropped to 2.43.

  About half of all countries are now below the rate of replacement, which means they’re relying on immigration (places like Canada) and/or they’re relying on labor productivity gains to keep their economy growing (places like China).

  The article is also fascinating in that it begins to consider the economic and cultural forces that shape the above fertility rates. Women in Saudi Arabia, for example, have one of the lowest labor force participation rates in the world. Only about 25% are in the workforce.

  If you’d like to read the full article, you can do that here.

  Image: Bloomberg

  2019.11.13

• Applications to US business schools are declining

  Applications to American business schools, including MBA programs, have fallen for five straight years according to this recent WSJ article.

  Compared to last year, business school applications to US schools are down about 9.1%; whereas they have been rising in other parts of the world. If you look at the change in applications from international students, the drop is even more significant — about 13.7%.

  Here are two charts from the WSJ:

  

  

  There are a couple of possible explanations for this. Tech is/has been hot. I would imagine that space has been absorbing many people who would have historically gone to do an MBA.

  But perhaps more significantly, stricter immigration policies are making it harder for international students to come to the US. At the same time, top tier alternatives are emerging around the world, such as in China.

  China exports more business school students than any other country and they are by far the largest international student base in the US. But the numbers are coming down. At the peak in 2015, the US issued nearly 275,000 student visas to people from China. By 2017, that number had more than halved to 112,817.

  Out of curiosity, I decided to look up the class profile for the most recent Rotman MBA cohort (my alma mater). 70% of the class was born outside of Canada. That’s not surprising.

  Charts: WSJ

  2019.10.21

• Slate announces minority investment from Goldman Sachs

  On Monday, Slate Asset Management announced a minority investment from Goldman Sachs Asset Management’s Petershill Program. This is great news, so here’s a copy of the full press release that went out.

  ---

  Toronto, August 19, 2019 – Slate Asset Management L.P. (Slate), a leading alternative asset management platform with a focus on real estate and real assets, today announced a passive, non-voting minority equity investment from Goldman Sachs Asset Management’s Petershill program, creating a strategic relationship with one of the world’s leading investment managers and positioning Slate for future success. The transaction will have no impact on the control or decision making of Slate. The day-to-day operations and management of Slate will remain unchanged.

  The investment provides capital that Slate will use to enhance its platform and increase its GP investments in current and future businesses and investment vehicles, further strengthening the firm’s alignment with its clients and investing partners.

  The investment accelerates Slate’s goal to build the leading independent alternative investment platform in real estate and real assets. As part of the transaction, Slate Founders Blair and Brady Welch have made a long-term commitment to the business.

  To date Slate has completed over $11 billion of transactions across Canada, the U.S. and Europe, through multiple vehicles spanning co-investments with global institutional partners, private equity funds and publicly-traded Real Estate Investment Trusts.

  “This investment in our platform is an endorsement of our people, our strategy and our future,” said Brady Welch, co-founder of Slate. “For our investors and our team, this is excellent news; our strategy and model remain the same, and we can now benefit from our new relationship with Goldman.”

  Blair Welch, co-founder of Slate, added that: “Since we started Slate nearly 15 years ago, we have showed that we can build tremendous value by providing our investors with a unique perspective, focusing on the fundamentals of the assets we acquire and delivering hands-on management that is innovative and creative. With our new relationship with Goldman Sachs, Brady and I are enthusiastic about what all of us at Slate can accomplish together over the next decade and beyond.”

  “Slate Asset Management is an incredibly innovative, dynamic real-estate focused alternative asset management platform,” said Robert Hamilton Kelly, Managing Director, Goldman Sachs Asset Management Petershill program. “We are big believers in the strategy, the team and the model. We are excited to partner with Slate as they work to capture the opportunities before them.”

  About Slate Asset Management

  Slate Asset Management L.P. is a leading real-estate focused alternative investment platform with over $6 billion in assets under management. Slate is a value-oriented manager and a significant sponsor of all of its private and publicly-traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm’s careful and selective investment approach creates long-term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a demonstrated ability to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.

  About Goldman Sachs Asset Management’s (GSAM) Petershill Program

  The Petershill program is managed by GSAM’s Alternative Investments & Manager Selection (AIMS) Group, which provides investors with investment and advisory solutions across leading private equity funds, hedge fund managers, real estate managers, public equity strategies and fixed income strategies. With investments in over 20 asset management firms, the Petershill program provides strategic capital to mid-sized asset management firms and has raised over $5 billion of commitments since inception. GSAM is one of the world’s leading investment managers with more than $1 trillion in assets under supervision globally as of June 30, 2019.

  For more information:

  Slate Asset Management
  Katie Fasken
  416-583-1785

  Goldman Sachs
  Patrick Scanlan
  212-902-5400

  2019.08.19

• Hello from Savannah

  

  I’m in Savannah, Georgia right now. See above (iPhone) photo taken from River Street. My dad and I are road tripping from West Palm Beach to Toronto in order to bring his car back to the city. So why not check out a few, new, cities along the way? I have my Fujifilm with me, but I won’t be posting any of those photos until I’m back in Toronto. Happy Canada Day weekend.

  2019.06.29

• Canada delimits its continental shelf in the Arctic Ocean

  Last week the Government of Canada filed a 2,100-page submission with the United Nation’s Commission on the Limits of the Continental Shelf. Under UN Convention on the Law of the Sea (UNCOLS), states with coastal territory have the exclusive rights to about 370 kilometers beyond their shores in order to conduct economic activity. This includes the exclusive rights to any resources. However, states may also make claims to further extensions underneath the water if they can substantiate them through scientific research. Last week’s submission attempts to do exactly that for an additional 1.2 million square kilometers of sea bed.

  Here is a map from High North News:

  

  The challenge with all of this is that Norway, Denmark, and Russia all have their own continental shelf claims, and there’s geographic overlap. (The US has not yet ratified their UNCOLS agreement.) So it is unlikely for this to be resolved anytime soon, though all states seem willing to work with the UN. This is a relatively new debate because the North Pole and Arctic Ocean were previously considered neutral territory. But climate change is opening up new economic opportunities (i.e. there’s a lot less ice). That’s worrisome in its own right.

  Click here for the full press release from the Government of Canada.

  2019.05.27

• A subway network at the scale of a country

  

  The Hyperloop space has a number of competing companies that are all trying to figure out how to move people (between cities) in low-pressure tubes at nearly the speed of sound (1,234.8 km/h). For what it’s worth, Virgin Hyperloop One, which was founded in 2014, has supposedly completed the most testing and raised the most money ($295 million as of December 2017).

  This morning I was reading up on the Toronto-based TransPod, which was founded in 2015 by Sebastien Gendron and Dr. Ryan Janzen. They raised a $15 million seed round from an Italian tech group in 2016 and are close on another $50 million round right now. Following this, they’ll look be looking for a few hundred million. They seem encouraged by where Canada’s Strategic Innovation Fund has been placing money.

  Supposedly, their biggest competitive advantage is cost. The company estimates their cost per kilometer to be about $25 million, which would put the cost of a Toronto-Montreal link at around $15 billion. This is not cheap, but it is allegedly cheaper. The travel time between these two cities could then be as short as 40 minutes.

  Virgin Hyperloop One has been similarly looking at a Toronto-Ottawa-Montreal line, as it would stitch together about 25% of Canada’s population. But apparently the federal government recommended that TransPod instead look at a line that sits entirely within one province — at least at the start.

  So the company has gone ahead and secured a 10-kilometer parcel of land in Alberta that will eventually form part of a future connection between Calgary and Edmonton. TransPod hopes to have this test track operational by 2022.

  However, their focus right now is on France. (Being in Europe is another differentiator for the company. Europe gets transport.) With the help of a few partners, the company has started work on a 3-kilometer test track in Limoges, France. Permits were received at the end of last year and they hope to begin testing by the end of this year.

  There’s no question that this technology has the potential to be transformational, which is why so many companies are competing in the space right now. But it’s obviously going to take a whole lot of moxie. Gendron is on the record talking about the risk-adverse nature of both Canadian regulators and investors when it comes to these sorts of large-scale innovations. That’s a problem that we need to address.

  The title of this post is a quote by Gendron taken from this TechVibes article.

  Image: TransPod

  2019.04.20

• Canada admitted 321,065 permanent residents last year

  Bloomberg recently reported that Canada admitted 321,065 permanent residents last year. This is up 12% from 2017, where the country admitted 286,479. Last year was also the largest cohort since 1913 (the year before World War I), where the country admitted just over 400,000 people.

  Here is a chart from Bloomberg (it is interactive if you click through):

  

  Of course, Canada was a much smaller country back in 1913 (about 7.6 million people), and so on a percentage basis we are much lower than where we were at the beginning of the 20th century. We’d have to admit close to 2 million permanent residents a year to get to a similar rate.

  And that is not what is in the books. Here are the projected admissions for 2019 to 2021. All of the below stats are from the 2018 Annual Report to Parliament on Immigration.

  

  I couldn’t find a geographic breakdown for last year, but in 2017, about 40% of admitted permanent residents (or 111,925 total) ended up in Ontario and about 72% ended up in Ontario, Quebec, and Alberta (the top 3 provinces for this year). If we add in BC, it brings this figure up to 86%.

  Here are also the top 10 countries of origin:

  

  If you’d like to download a PDF of the full report, you can do that here.

  2019.03.23

• Blue lights on train platforms

  

  Sadly, Japan has one of the higher suicide rates in the world. According to the World Health Organization, the rate from 2000 to 2016 was about 18.5 deaths per 100,000. The only country in Asia with a higher rate is South Korea. They are at 26.9 deaths per 100,000 (an alarming figure). For comparison, Canada and the US are at 12.5 and 15.3, respectively, which also seem rather high to me.

  I was intrigued to learn today that one of the ways that Japan has been trying to combat this high figure is by installing blue LED lamps on some of its railway platforms. Blue lights have been proven to have a calming effect (compared to white light). And since jumping in front of a train is unfortunately a common suicide method, blue lights were thought to maybe be a cost effective alternative to platform screen doors.

  The first blue station lights were installed on Tokyo’s Yamanote line in 2009. And according to this 2013 study – which looked at the possible impact across 71 train stations in Japan – the introduction of blue lights actually resulted in an 84% decrease in the number of suicides. Further studies also showed that there were no corresponding increases at other non-blue light stations. 

  It is an interesting example of “nudge theory”, but does it get at the root of the problem?

  Photo by Athena Lam on Unsplash

  2018.12.18

• My Focals by North fitting

  Over the weekend I went by the new North store on Ossington for the fitting of my new Focals by North glasses. According to Retail Insider, this is the first retail space in Canada that is entirely dedicated to wearable tech (shout-out to Hullmark and CBRE). Full disclosure: I am not being paid by North, but I was asked if I would accept a pair of Focals and provide my thoughts. So I will be doing that over the coming months on the blog.

  Previously known as Thalmic Labs, North is a Waterloo-based company that first attracted attention with the launch of a gesture-control armband known as Myo. What that product did was make digital interactions completely hands-free. It had strong use cases across medicine, music, and business. However, this past October the company announced that it would be moving on from Myo. Enter Focals by North. 

  Focals are custom-built eyewear with an integrated display that only the wearer can see. It is similar to, for example, BMW’s heads up display, and the idea is that it is a way for you to quickly get the information you want, without pulling out your phone and disengaging from the world. The ambition is human-centric technology that integrates seamlessly.

  Here is an example of what that display looks like (it is much better and cooler in person):

  

  To control the display you use both your voice (the glasses have a microphone) and a 4-directional joystick called a Loop, which sits on your index finger like a ring and that you thumb. You can receive and send texts (voice to text), you can get turn-by-turn directions, you can view your appointments and the weather, and you can ask Alexa things.

  The first step in the ordering process is a fitting. And that’s what I did over the weekend. The glasses are all custom made and so they start by doing a full 3D scan of your head in a room that feels like the future. Once that’s done, you pick what frame you want, the color, and your sun clips (an essential accessory for day drinking in Trinity Bellwoods). Total cost: CAD 1,299.

  While exceptionally cool, it is premature for me to really comment on the tech at this point. I’m expecting my Focals in 8-10 weeks. But is it interesting to opine on the current state of eyewear tech.

  Most people believe that the problem with Google Glass was the fact that you had to be a Silicon Valley nerd in order to want to wear them out in public. They looked and continue to look ridiculous, which is why Snap went fashion first with their Spectacles. I have always found this product really intriguing. I want to use it. But I’ve stopped using Snapchat entirely and I don’t really have a strong use case for them.

  Snap’s Spectacles are about capture and content creation, whereas Focals are about discreetly feeding you information that you would otherwise have to pull out your phone (or watch) to view. There’s no camera on Focals. That’s not what they are about. But they are obviously fashion first.

  The question for me is whether the experience will truly be seamless and integrated, or if I’ll still be disengaged – gazing off into my glasses (space) while I ask Alexa to UberEats me a chicken shawarma wrap. I’ll let you know in about 8-10 weeks. If you’re looking for more on Focals by North, check out their website and this CNBC piece. Go Canadian tech.

  2018.12.09

• Project Profile: Pavillon du lac

  Over the years on this blog I have posted the occasional “Project Profile”, where I have shared a noteworthy development project, an interesting piece of architecture, or some other kind of project that I thought would interest all of you. Everything is now a project.

  This morning I decided that I should do that more often. I’m not sure if it will be every week, but hopefully it’ll be fairly regularly. I also have a few other alliterative blog series that I have started in the past and should continue.

  This week’s Project Profile is the Pavillon du lac in Quèbec (somewhere) by Montréal-based Daoust Lestage. All of the photography used in this post is by Adrien Williams. 

  The first thing you may notice is that it is evocative of Philip Johnson’s Glass House and Mies van der Rohe’s Farnsworth House (1951) – but probably more the latter.

  Le Pavillon du lac was completed in 2015. It has 2 bedrooms and is about 1,240 square feet. The entire glass pavilion is housed between two thin flat slabs with cantilevering overhangs on two of its elevation. They create a kind of portico that frames views of the water. All of the glass is triple-glazed.

  

  One of the key distinctions for me is how the house sits on the ground. As is the case with the Farnsworth House, le Pavillon du lac sits on stilts, elevated off the ground. The ground floor slab is then able to ignore whatever topography there may be beneath it. 

  

  At the same time, there are elevations of the house where the ground has been carved into (see below). This creates a small moat around the perimeter and roots the building within the landscape. 

  

  For more photos of le Pavillon du lac, click here.

  2018.09.24