The Canadian Pension Plan Investment Board's infrastructure portfolio rose to C$9.5 billion ($9.5 billion; €7 billion) during the third quarter of 2010 thanks to two key infrastructure deals that closed since the end of September.
Infrastructure now accounts for 6.8 percent of CPPIB’s portfolio, while it accounted for 4.5 percent at the end of the second quarter.
CPPIB closed two major infrastructure deals in the past few months: the purchase of a ten-percent stake in the Toronto 407 Highway from Cintra Infraestructuras valued at C$894 million; and the C$3.4 billion acquisition of Sydney-listed toll road operator Intoll. The Intoll acquisition gave CPPIB a further 30-percent stake in the 407 highway and a 25-percent stake in Australian Westlink M7.
In the second quarter, infrastructure assets rose C$400 million from the previous period, a far less dramatic increase than the third quarter’s C$3.3 billion jump, highlighting the impact of the 407 and Intoll deals.
CPPIB reported total assets of C$140.1 billion, a C$1.5 billion increase from the quarter ended September 2010, according to a statement. Chief Executive David Denison said in a statement that “a continued uptrend in the global equities market” was responsible for the increase. The pension invests most of its equities portfolio in publicly-traded stocks.
However, at C$21.2 billion, private equity still makes up a 15.1 percent chunk of CPPIB's total portfolio.
CPPIB said its acquisition of UK engineering company Tomkins, undertaken jointly with Onex Corporation, was the largest global private equity deal of 2010.
Real estate assets account for 6.6 percent, or C$9.2 billion, of the portfolio. Inflation-linked bonds accound for C$3.9 billion, or 2.7 percent.
Toronto-based CPPIB is a professional investment manager responsible for investing the pension assets of 17 million Canadians.