Canada’s the Caisse eyes emerging market infra

Infrastructure boss Macky Tall reveals the pension is ‘currently developing a strategy on how to play the emerging market opportunity’ as the Caisse seeks to grow its 12-person infrastructure team to closer to 18 people.

Canadian pension Caisse de dépôt et placement du Québec (Caisse), which manages a $6 billion infrastructure portfolio, is planning to invest in emerging markets going forward, head of infrastructure Macky Tall exclusively told Infrastructure Investor.

“If you look at our portfolio today, the majority of the investments are in Europe with the balance in North America. We certainly have an appetite to invest more in North America and Canada, which are markets we know very well and which we think will offer more opportunities over the coming years,” Tall said.

“But the economic consensus is that OECD countries will have relatively low growth over the coming years, with most of the growth to be located in emerging countries. As a consequence, we are currently developing a strategy on how to play the emerging market opportunity from an infrastructure point of view,” he explained, adding that the Caisse is going to approach emerging markets with some caution:

“We plan a very limited approach in terms of sectors and also a limited number of emerging countries.”

Tall is also keen to grow the Caisse’s infrastructure team: “Our 12-person team today manages some $6 billion spread over just under 20 investments. But we intend to do a couple of things over the coming months, the first of which is to increase the team’s size to closer to 18 people and strengthen its asset management capability.” 

*To find out more about the Caisse’s infrastructure plans and the story behind the 23 percent returned by its infrastructure portfolio last year, be sure to read the full interview with Macky Tall here or in the April 2012 issue of Infrastructure Investor magazine.