CPPIB Assets Rise to C$153.2B

The Canada Pension Plan Investment Board, the country’s second largest pension plan and one of the world’s most active investors in private equity, saw its net assets rise to C$153.2 billion ($154.6 billion) in the second quarter, Reuters reported Thursday. That is up from C$129.7 billion a year ago. The Toronto-based CPPIB has C$24.1 billion (or 15.7% of its assets) invested in private equities.

(Reuters) – Canada Pension Plan Investment Board, the country’s second-largest, said on Thursday net assets rose to C$153.2 billion at the end of the second quarter, compared with C$129.7 billion in the year-ago period.

The Toronto-headquartered CPPIB added C$5 billion to its net assets in the second quarter alone, including C$1.3 billion from investment income and C$3.8 billion in pension plan contributions.

“While major equity indices were down this quarter, the Fund’s private equity holdings and real estate portfolio helped deliver positive results overall,” CPPIB Chief Executive David Denison said in the statement of results.

CPPIB is one of the world’s most active investors in private equity, where it has consistently figured in the biggest deals for several years running.

The pension fund administrator expects to have net assets of C$465 billion by 2030 and more than C$1 trillion by 2050, far outstripping commitments to 17 million contributors and beneficiaries.

Together with partner Silver Lake, CPPIB announced the sale in May of a stake in Internet phone service Skype to Microsoft Corp for $8.5 billion. The group bought into the investment in September 2009, for some $1.9 billion.

“When completed, the transaction will crystallize a substantial gain on CPPIB’s initial investment of C$329 million,” the pension fund said on Thursday.

ASSET MIX

Equities represented 51.8 percent of its investment portfolio at June 30, with C$55.3 billion (36.1 percent) in public equities and C$24.1 billion (15.7 percent) in private equities.

Fixed income, including bonds, money market securities and other debt and debt financing liabilities represented 31.1 percent of the portfolio, or C$47.7 billion.

Inflation-sensitive assets made up C$26.2 billion of its total assets, including real estate, infrastructure assets and inflation-linked bonds.

(Reporting by Pav Jordan; Editing by Frank McGurty)