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CPPIB’s Peru gas deal highlights Q3 performance

Infrastructure comprises $27.6bn and 42% of the pension's new real assets portfolio, with real estate holdings making up the rest.

The Canada Pension Plan Investment Board's third-quarter report shows a quiet end of 2016, with its highlighted transaction being a C$110 million ($84.07 million; €79.04 million) investment in a Peruvian natural gas company.

The Toronto-based pension manager said it acquired a 5.1 percent stake in Transportadora de Gas del Peru, the South American country's largest natural gas transporter. TGP operates a 730-kilometer natural gas pipeline system and a 560-kilometre natural gas liquids pipeline system. The acquisition boosted CPPIB's overall stake to 49.9 percent.

CPPIB's fiscal year 2017 began in April 2016 and ends 31 March. It had C$27.6 billion allocated to infrastructure at the end of last year, representing 9.3 percent of its C$298.1 billion portfolio.

Infrastructure made up 42 percent of its new real assets portfolio, and real estate holdings comprised 58 percent.

In September, CPPIB became the latest large-scale investor to combine infrastructure and real estate under a single real assets portfolio. The move is aimed at streamlining its inflation-linked, cash-yielding assets. Graeme Eadie was appointed head of the new department, having previously led CPPIB's global real estate business.

According to the quarterly report, CPPIB's investment objectives line up with the type of cashflow and yield infrastructure assets provide.

“CPPIB continues to build a portfolio and to invest in assets designed to generate and maximize long-term, risk-adjusted returns,” the report said.