CPPIB Reports 2.2% Return in the Second Quarter

https://dailyalts.com/wp-content/uploads/2019/11/54e2dc444852a814ea898579ce203e7c1d22dfe05452764c77267ddc_640.jpg

Canada’s largest public pension fund is in the green during the second quarter.

The Canada Pension Plan Investment Board (CPPIB) reported gains of 2.2% during the second quarter. On Thursday, the nation’s largest public pension fund reported how it delivered the return.

The CPPIB, which manages pension monies for 20 million Canadians, diversified its portfolio. It is now one of the world’s largest investors in real estate, private equity, and infrastructure. The fund has largely shunned public equities and government bonds.

CPPIB Active in Alternative Investments

The CPPIB increased its exposure to private equity to 24.2%, according to Q2 numbers. That figure is up from the 21.8% exposure it had in the same period last year. Meanwhile, it dropped its stake in public equities from 36.7% in Q2 2018 to 31.9% in Q2 2019.

The fund continues to build its private equity stake. In October, the fund announced plans to invest $551 million into a holding firm run by KKR & Co. That firm has conducted a public tender for the stock of German publishing giant Axel Springer. In November, the Canadian fund purchased renewable energy giant Pattern Energy Group for $2.63 billion. This purchase is part of a growing effort to invest in renewable energy projects.

Canada Pension Plan Investment Board and Renewables

As we reported on Monday, CPPIB has more than doubled its renewable energy investments in the last year. As of June 30, the CPPIB revealed it had $3.02 billion invested in renewable energy businesses. This amount is twice what it was last year.

It’s also more than 100 times the amount it invested in the renewables space in 2016.

Meanwhile, the Canadian pension fund announced this week that it is divesting from U.S. prison companies. The decision comes after an internal review of its passive portfolio. The fund faced public backlash as well after it invested $5.9 million into the two largest private prison firms in America.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/07/bitcoin-2668211_640.jpg
Digital Assets: Bitcoin Closes In On $40K After Amazon Rumors Spark Rally
July 26, 2021     Digital Assets, News

Bitcoin, the leading cryptocurrency, which had been in a downtrend since its April highs, and tested $30,000 on more than one occasion, surged nearly 15% after a rumor that Amazon…

https://dailyalts.com/wp-content/uploads/2021/07/rivian-r1t-7.jpg
Venture Capital: Rivian Lands $2.5B; Plans Second EV Plant Including For Batteries
July 26, 2021     Latest News, News, Venture Capital

Electric vehicle maker Rivian announced Friday (July 23, 2021) its close of a $2.5 billion funding round led by Amazon’s (NASDAQ: AMZN) Climate Pledge Fund, D1 Capital Partners, Ford Motor…

https://dailyalts.com/wp-content/uploads/2021/07/champagne-2178775_640.jpg
Liquid Alternatives: Three Reasons
July 26, 2021     Liquid Alternatives, News

Spawned after the 2008 financial crisis, liquid alternatives have disappointed investors. During the 2010s, these instruments averaged an annualized gain of 1.66%. Writing in Morningstar, columnist John Rekenthaler makes a…

https://dailyalts.com/wp-content/uploads/2021/07/Ez4eEsTWUAMC8Gz.jpg
FinTech: UK-Based PensionBee Reports Assets Under Administration Have Doubled In A Year
July 26, 2021     FinTech, News

An influx of new customers has boosted two-fold PensionBee’s assets under administration as at June 30, 2021. Further, in a landmark year, PensionBee (LON: PBEE) raised £55 million from an…