CPPIB posts 3.4 percent return for Q3

Returns were bolstered by fixed income and private markets

The Canada Pension Plan Investment Board reported gross investment returns of 3.4 percent for the third quarter according to newly released figures. Net assets for the pension sit at $234.4 billion up from $226.8 billion in Q2.

“During the quarter, our investment portfolio reflected mixed performance from the global public equity markets, balanced by solid returns from our fixed income assets and positive contributions from our private investments,” said Mark Wiseman, president & chief executive officer, CPP Investment Board (CPPIB) said in a statement.

According to figures released by CPPIB the private equities portfolio accounted for some $42.8 billion of the portfolio or 18.3 percent.

On the private investment side, CPPIB signed an agreement to invest approximately €376 million for a 39 percent stake in European car park operator Interparking. Interparking is one of Europe’s largest car park management companies with a portfolio of 657 car parks in 350 cities and is based in Brussels.

CPPIB also participated in the Alibaba IPO, having been an investor in the company since 2011. The pension has invested US$314.5 million to date.

This quarter, CPPIB also hired Rodolfo Spielmann to the new role of managing director & head of Latin America. Spielmann will oversee CPPIB’s office in São Paulo, Brazil, providing leadership and coordination of CPPIB’s investment activities in Latin America and management of advisory relationships. Prior to joining CPPIB, Spielmann was South America practice leader with Bain & Company. The pension has also launched preparations to open an office in Mumbai, India, in mid-2015, expanding CPPIB’s global presence in the Sub-continent. CPPIB sees India as a key long-term growth market.