Canada Pension Plans C$40 billion (US$26.1 billion) in fixed income and cash would be managed by the CPP Investment Board, Toronto, which now runs the plans C$14 billion equity investments, under legislation introduced today in the Canadian Parliament. The move is expected to increase the Ottawa-based plans returns by about C$75 billion over 50 years, based on estimates by the Chief Actuary of Canada.
"These changes represent the final steps in having all CPP assets managed by the (investment) board, John Manley, finance minister, said in a statement.
John MacNaughton, investment board CEO, said he expects the combined assets of the CPP and CPPIB to total C$170 billion by 2012.