Shift from stocks boosts CPPIB’s returns

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Shift from stocks boosts CPPIB’s returns GlobeBusiness

Canada Pension Plan Investment Board shifted away from stocks that trade on the world’s exchanges and moved more deeply into private companies and projects like power plants and toll roads – helping it add $32-billion to its assets in its most recent fiscal year.

The CPP Fund closed the year with $392-billion in assets. The money supports current and future payments to 20 million Canadians participating in the Canada Pension Plan.Like many pension investors, CPPIB was dinged by the global market meltdown in the fourth calendar quarter of 2018, but rode a rebound in the three months that ended in March. For the fiscal year, CPPIB posted returns of 7.9 per cent in Canadian equities and 7.5 per cent in foreign equities, while reporting a decline of 1.

Returns in its “real assets” portfolio included 6.4 per cent in real estate and 14 per cent in infrastructure. Private equity is now 23.7 per cent of the portfolio, up from 20.3 per cent in March 2018. Credit investments – where CPPIB actively lends to companies or purchases their debt for strategic purposes – jumped to 9.1 per cent of the portfolio, from 6.3 per cent the year before. And infrastructure is now 8.5 per cent of the portfolio, up from 8.0 per cent the year before.

 

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globebusiness Did they shift their holdings out of American Immigration Detention Centres and for-profit prisons? Maybe you can ask about that the nest time you interview someone from CPPIB.

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