Canada Pension Plan’s 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 plan’s C$14 billion equity investments, under legislation introduced today in the Canadian Parliament. The move is expected to increase the Ottawa-based plan’s 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.
