The Canada Pension Plan Investment Board (CPPIB) said its infrastructure portfolio returned 8.8 percent in fiscal 2013 – a solid performance, but also a noticeable drop-off from its 12.8 percent gain during calendar 2012.
The CPPIB, administrator to the Canada Pension Plan Fund (CPP Fund), delivered a 10.1 percent gross return for 2013, the Board announced. In addition, the CPP Fund added C$21.7 billion ($21 billion; €16.3 billion) in 2013, growing from C$161 billion in 2012 to C$183.3 billion as of March 31, CPPIB said.
CPP Investment Board chief executive Mark Wiseman credited diversification as well as “active” investment management for the “solid annual return”.
The Board called its $1 billion dollar investment in Grupo Costanera—a private toll road operator in Chile and a transportation infrastructure asset—a ‘highlight’ for 2013.
CPPIB, which established its own infrastructure investment group, is a ‘direct investor’ in the asset class. In addition to Grupo Costanera, the Board is 40 percent owner of the Ontario 407 Express Toll Route (407 ETR), as well as 25 percent owner of Westlink M7, a toll road in Australia, among others.
CPPIB noted its infrastructure portfolio totaled C$11.2 billion, representing a 6.1 percent target asset allocation.