TORONTO (Reuters) - Canada Pension Plan Investment
Board, the manager of the country's national pension fund, said
on Wednesday assets under management edged up in its latest
quarter as contributions offset negative investment returns.
For the fiscal quarter ended June 30, Toronto-based CPPIB's
net assets rose to C$129.7 billion, helped by C$3.8 billion in
Those gains were offset by a C$1.7 billion decline in the
value of its investments during a period of turbulence on
global equity markets.
"This was a challenging quarter for public equity markets
around the world, many of which experienced double-digit
declines," said David Denison, president and chief executive of
the CPP Investment Board.
"This was also a quarter where the CPP Fund benefited from
diversification into private equity, real estate,
infrastructure and private debt holdings."
Assets under management are now about three times the value
in 2000, when CPPIB was 93 percent invested in bonds and before
it adopted an active investing policy.
Assets rose 23 percent from March 2009, at the trough of
the global financial meltdown, when assets under management
amounted to about C$105.5 billion.
CPPIB was involved in at least three major transactions in
the fiscal first quarter, including the purchase of ownership
stakes in a Manhattan skyscraper and the C$250 million purchase
of a 17.1 percent stake in Laricina Energy Ltd, a closely held
Calgary-based oil sands company.
Together with a Canadian partner, CPPIB is also in the
process of buying Tomkins Plc, the British maker of
car parts, industrial hoses and bath tubs, for $4.5 billion. If
successful it will rank as the largest global private equity
deal of the year.
CPPIB was involved in three of the top five global private
equity deals of 2009, including the largest leveraged buyout of
the year -- the $4 billion acquisition by CPPIB and U.S.
private equity firm TPG of IMS Health Inc, a
prescription drug sales data provider.
Deep pools of capital and long-term investment outlooks
have helped Canadian pension funds become a new breed of
financial investor, able to easily outmuscle buyout firms.
"We now have in place the resources and expertise to
execute private asset transactions such as these most recent
ones around the world," Denison said.
CPPIB said at the end of the quarter equities represented
53.9 percent of investments, or C$69.9 billion, with 40.8
percent in listed firms and 13.1 percent in private equity.
Fixed-income investments, which included bond and money
market securities, represented 32.0 percent of the portfolio.
The remainder included real estate and infrastructure assets
and inflation-linked bonds.
(Reporting by Pav Jordan; Editing by Frank McGurty)