CPPIB infra portfolio stays flat in Q1 2014

The Canada Pension Plan Investment Board’s infrastructure portfolio shrunk 0.5 percent in Q1 of its 2014 fiscal year.

The Canada Pension Plan Investment Board (CPPIB) said its infrastructure portfolio shrunk by 0.5 percent in its first 2014 fiscal quarter to C$11 billion in the quarter ending June 30, 2013 from C$11.07 billion the previous quarter.

The pension fund reported a relatively flat quarter overall with its entire portfolio posting a gross investment return of 1.1 percent, with net assets of $188.9 billion compared to $183.3 billion at the end of the previous quarter, according to a CPPIB statement.

The pension plan’s infrastructure portfolio now represents 5.8 percent of its total assets compared with 6.1 percent in the previous quarter ending March 31.

“Overall we would characterize the quarter as relatively turbulent compared to recent reporting periods,” said CPPIB president and chief executive Mark Wiseman. “Interest rates rose significantly as bond markets fell, while volatility increased across major equity markets producing mixed returns,” he added.

Headquartered in Toronto, CPPIB is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. It invests in public equities, private equities, real estate, infrastructure and fixed income instruments and is managed independently of CPP.