Canada pension fund turns to emerging markets, India in focus
Canada Pension Plan Investment Board will invest up to a third of its funds in emerging markets over the next five years and 'India is a key component of that'. CPPIB will invest across asset classes including infrastructure, real estate, public and private equities, funds.
September 28, 2020 / 10:23 AM IST
Prime Minister Narendra Modi shakes hands with his Canadian counterpart Justin Trudeau before their meeting at Hyderabad House in New Delhi. (PTI)
Canada Pension Plan Investment Board (CPPIB) will invest up to a third of its funds in emerging markets over the next five years and India may rake in big money, CNBC has reported.
"We expect to invest up to one-third of the Fund in emerging markets by 2025 and India is a key component of that," Suyi Kim, CPPIB’s Asia Pacific head, told CNBC.
According to Kim, CPPIB will invest across asset classes including infrastructure, real estate, public and private equities, funds and co-investments and credit.
“We see domestic consumption, technology and increasing demand for infrastructure to support the growth underpinning many of the themes and opportunities we look at in India.”
The pension fund even has an office in India and some of its current investments include a stake in Kotak Mahindra Bank as well as $225 million in the India Resurgence Fund, which invests in distressed assets in the country.
The report said CPPIB had agreed to invest about $600 million in India’s National Investment and Infrastructure Fund in December 2019. The investment included a $150-million commitment in NIIF’s Master Fund and co-investment rights of up to $450 million in future opportunities.
The Canadian pension fund manages about $329.75 billion, with a bulk of its investments in North America. Reports say around 34 percent of its assets are allocated in the US followed by Asia.