CPPIB to share expertise with Chinese policymakers

The Canadian pension fund, an active investor in China, has signed a memorandum of understanding with the country’s economic and social development commission to assist in attracting more international capital to the Chinese senior care industry.

The Canada Pension Plan Investment Board, an active investor in China, has signed a memorandum of understanding with its National Development and Reform Commission, agreeing to share expertise in pension reform as well as assist in the country’s efforts to attract more foreign investment to the senior care industry.

China’s NDRC formulates and implements national economic and social development strategies and plans, and also monitors and analyses key trends in these areas.

In addition to helping draw more international capital to the senior care industry, CPPIB will provide joint training and workshops on pension reform as part of the MOU.

“As we continue to deploy capital in important growth markets like China for the benefit of CPP contributors and beneficiaries, there is significant value for a long-term investor like CPPIB in sharing information, experience and successful practices with policy-makers as they work towards improving policy frameworks,” Mark Machin, president and chief executive officer of CPPIB, said in a statement released on 22 September.

CPPIB, which manages C$287.3 billion ($220 billion; €195 billion) in assets, has committed capital to both China-focused and regional private equity funds, including CITIC Capital Partners, Hony Capital, CDH Investments, FountainVest Partners, and Hopu Investment Management.

The Toronto-headquartered pension fund has also made several co-investments in the country, which includes e-commerce giant Alibaba, China’s largest retail bank Postal Savings Bank of China, hospital operator Chindex, and real-estate e-commerce platform Fangduoduo.

According to CPPIB’s latest annual report, the fund allocated as much as 9.1 percent or $25.5 billion in Asia as of 31 March 2016. The fund’s private equity portfolio grew from $7.7 billion in FY 2015 to $10.8 billion in FY 2016, generating a 12.6 percent net return for fiscal 2016.