News Column

Strong stock markets helped CPP Investment Board earn 1.6 per cent return in Q1

August 14, 2014

The Canadian Press



TORONTO - The Canada Pension Plan Investment Board says it earned a gross investment return of 1.6 per cent in the first fiscal quarter of 2015, as it benefited from a strong performance across global stock markets, especially in Canada.

The board, which manages one of the world's largest pension funds, had earned a return of 1.1 per cent in the same period a year earlier.

CPPIB said it had net assets of $226.8 billion at the end of June 30, up from $219.1 billion at the end of fiscal 2014.

“Several factors contributed to the fund’s results this quarter beginning with the continuing advance of public equities globally, led by the Canadian market,” said Mark Wiseman, CPPIB's president and CEO in a statement Thursday. “All of our programs reported positive investment returns during the quarter."

The board said its focus still remains long-term profitability, as opposed to quarterly performance.

"To meet long-term investment objectives, CPPIB is building a portfolio and investing in assets designed to generate and maximize long-term returns, " it said in a statement. "Long-term investment returns are a more appropriate measure of CPPIB’s performance than returns in any given quarter or fiscal year."

On Thursday, CPPIB announced that it is investing an additional US$500 million to the Goodman North American Partnership (GNAP), a joint venture formed in 2012 between CPPIB and Goodman Group. It has now allocated a total of US$900 million representing a 45 per cent interest in the joint venture, with Goodman's aggregate allocation totalling US$1.1 billion representing a 55 per cent interest.

The GNAP partnership invests in modern logistics and warehouse facilities in major U.S. markets, and is committed to six development projects located in California with a total potential gross leasable area of 6.5 million square feet.

Last month, the board signed a deal to acquire a 39 per cent stake in Interparking, one of Europe's largest parking lot management companies, for about $546 million. Based in Brussels and with operations across nine countries in Europe, Interparking owns 657 car parks in 350 cities.

In June, it also bought a six per cent stake in U.K.-based financial information company Markit Ltd., for US$250 million.

The Canada Pension Plan Investment Board invests the money not needed by the Canada Pension Plan to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries.


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Source: Canadian Press DataFile


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