CPPIB Reports 2.2% Return in the Second Quarter

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.


Alt Insights

January 16, 2020

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix
Shape

Latest Alternative Investment News

Digital Assets: UAE a Flag-bearer for Blockchain Technology Deployment
January 20, 2020     Digital Assets, News

The UAE is a Flag-bearer for Blockchain Technology Deployment. A joint white paper has been issued by the World Economic Forum and the United Arab Emirates’ Centre For The Fourth…

Digital Assets: Bitwise/ETF Trends 2020 Survey – 65% Advisors Want to Buy Bitcoin in an ETF
January 20, 2020     Digital Assets, News

The Bitwise / ETF Trends 2020 Benchmark Survey of Financial Advisor Attitudes Toward Cryptoassets gives useful insight into what advisors are thinking about Bitcoin and cryptos going into 2020. ETFs…

ESG: Best Buy’s CEO in the Dock for Alleged ‘At-Work’ Liaison
January 20, 2020     ESG and Sustainability, Latest News, News

Current Best Buy CEO Corie Barry allegedly had a romantic relationship with a male colleague before taking charge as CEO in June 2019. Best Buy’s board is investigating the charge,…

Emission-Free Friday: Here are the Latest Funds to Push for Carbon Neutral
January 17, 2020     ESG and Sustainability, Investments, News

Carbon emissions dominated the headlines this week. The European Commission has announced an ambitious plan to shift toward a green economy and make the EU carbon-neutral in the year ahead….