The Canada Post pension plan, Ottawa, which is being carved out of Canadas Public Service Superannuation Fund, is searching for money managers through consultant Mercers website, www.wmmercer.com. Mercer is compiling a list of candidates for the pension fund, but RFPs have not been issued.
Canada Post will have an asset mix of 70% equities and 30% fixed income, said Luc Lalonde, manager of pension investments at Canada Post. About 30% of the equity investments will be in international stocks. There also will be three passive mandates U.S. equities, Canadian equities and Canadian fixed income. More specific asset allocation decisions have not yet been made.
Mr. Lalonde said the exact funding timetable for Canada Post has not yet been worked out, but it will get a total of C$7 billion over a two-year period. "The federal government is giving us a 7.25% rate of return on the money until the company is ready to take it over, said Mr. Lalonde. "We want to make the right decision when we take it over.