The Canada Pension Plan Investment Board’s private equity portfolio comprised 13.1 percent of its total assets, or $15.4 billion, as of 30 September. That’s up from 11 percent, or $14.1 billion, in the first quarter.
The increase is in part due to a decline in its public equities portfolio, which as of September, accounted for 59.9 percent, or $70.4 billion, of total assets, down from 62 percent, or $79.2 billion, in June.
While the pension did not release returns information for individual asset classes, it said it had suffered a $5.3 billion decline in assets and an overall negative return of 8.5 percent in the second quarter. It had a negative 7.5 percent return in the previous quarter.
“While the fund was adversely impacted by broad declines in public equity markets, I had virtually no losses due to credit or counterparty exposures in this period,” David Denison, president and chief executive officer of CPPIB, said in a statement.
CPPIB’s real estate portfolio increased to 6.2 percent of assets at a value of $7.3 billion as of 30 September, an increase from 5.6 percent, or $7.2 billion in June.
The percentage of its portfolio invested in infrastructure also rose to 3.1 percent at a value of $3.6 billion, in contrast to its former 2.6 percentage at $3.3 billion in June.
The pension’s four-year annualised investment rate of return through September 2008 was 6.6 percent, resulting in a $22 billion, for the four-year period.
CPPIB invests in private equity via limited partnerships and direct investments. It has direct investments with a value of $3.8 million and has offices in Canada, Hong Kong London.