The Canada Pension Plan Investment Board (CPPIB; ), operating as CPP Investments (), is a Canadian
Crown corporation
Crown corporation ()
is the term used in Canada for organizations that are structured like private companies, but are directly and wholly owned by the government.
Crown corporations have a long-standing presence in the country, and have a sign ...
established by way of the 1997 ''Canada Pension Plan Investment Board Act'' to oversee and invest the funds contributed to and held by the
Canada Pension Plan
The Canada Pension Plan (CPP; ) is a contributory, earnings-related social insurance program. It is one of the two major components of Canada's public retirement income system, the other being Old Age Security (OAS). Other parts of Canada's retir ...
(CPP).
CPP Investments is one of the world's largest investors in
private equity
Private equity (PE) is stock in a private company that does not offer stock to the general public; instead it is offered to specialized investment funds and limited partnerships that take an active role in the management and structuring of the co ...
, having invested over
US$
The United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introdu ...
28.1 billion between 2010 and 2014 alone. Despite being a Crown corporation, CPPIB is not considered a
sovereign wealth fund
A sovereign wealth fund (SWF), or sovereign investment fund, is a state-owned investment fund that invests in real and financial assets such as stocks, Bond (finance), bonds, real estate, precious metals, or in alternative investments such as ...
because it operates at
arm's length from the
Government of Canada
The Government of Canada (), formally His Majesty's Government (), is the body responsible for the federation, federal administration of Canada. The term ''Government of Canada'' refers specifically to the executive, which includes Minister of t ...
and solely manages CPP contributions paid by workers and employers, not public funds.
As of March 31, 2025, the CPP Investment Board manages over
C$714 billion in
assets under management
In finance, assets under management (AUM), sometimes called fund under management, refers to the total market value of all financial assets that a financial institution—such as a mutual fund, venture capital firm, or depository institutio ...
for the Canada Pension Plan on behalf of 22 million Canadians.
Canadians contributed $15.9 billion to the fund from individual payroll deductions in fiscal 2024.
CPP Investments is one of Canada's top eight pension funds, nicknamed the "
Maple 8" or "Maple Revolutionaries."
History
The
Canada Pension Plan
The Canada Pension Plan (CPP; ) is a contributory, earnings-related social insurance program. It is one of the two major components of Canada's public retirement income system, the other being Old Age Security (OAS). Other parts of Canada's retir ...
was established in 1966. For much of its history, the plan relied on contributions to pay benefits. By 1996, the federal government had determined that the CPP as then constituted was unsustainable.
Changes were made to the plan, gradually increasing the contribution rate to its current 9.9% and creating the CPP Investment Board.
Under the direction of then
Minister of Finance Paul Martin
Paul Edgar Philippe Martin (born August 28, 1938), also known as Paul Martin Jr., is a Canadian lawyer and retired politician who served as the 21st prime minister of Canada and the leader of the Liberal Party of Canada from 2003 to 2006.
Th ...
, the CPP Investment Board was created by an
Act of Parliament in 1997 as an independent, but accountable, body to monitor the funds held by the Canada Pension Plan. The CPP Investment Board began its investing program in 1999, establishing the CPP Reserve Fund to hold investment earnings and CPP contributions not needed to pay current pensions. It reports quarterly to the public on its performance, has a professional
board of directors
A board of directors is a governing body that supervises the activities of a business, a nonprofit organization, or a government agency.
The powers, duties, and responsibilities of a board of directors are determined by government regulatio ...
to oversee the operations of the CPP reserve fund, and also to plan changes in direction. As a
Crown corporation
Crown corporation ()
is the term used in Canada for organizations that are structured like private companies, but are directly and wholly owned by the government.
Crown corporations have a long-standing presence in the country, and have a sign ...
, the CPP Investment Board is accountable to
Parliament
In modern politics and history, a parliament is a legislative body of government. Generally, a modern parliament has three functions: Representation (politics), representing the Election#Suffrage, electorate, making laws, and overseeing ...
and reports annually through the Minister of Finance. While accountable to Parliament, the CPP Investment Board is not controlled by the government or subject to government appointments, its employees and directors are not part of the
Public Service of Canada
The Public Service of Canada (known as the Civil Service of Canada prior to 1967) is the civilian workforce of the Government of Canada's departments, agencies, and other public bodies.
While the Government of Canada has employed civil servants ...
. CPPIB is a partner of the
World Economic Forum
The World Economic Forum (WEF) is an international non-governmental organization, international advocacy non-governmental organization and think tank, based in Cologny, Canton of Geneva, Switzerland. It was founded on 24 January 1971 by German ...
.
Mandate
The CPP Investment Board's mandate is laid out in its founding legislation, the ''Canada Pension Plan Investment Board Act'' (
S.C. 1997, c. 40). Its sole investing mandate is to achieve a "maximum rate of return, without undue risk of loss".
Investments
The CPP Investment Board invests in
private equity
Private equity (PE) is stock in a private company that does not offer stock to the general public; instead it is offered to specialized investment funds and limited partnerships that take an active role in the management and structuring of the co ...
,
public companies
A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange ( ...
, and both residential and commercial
real estate in major cities around the world. It also invests in real estate equities and
real estate investment trusts (REITs). CPPIB made its first direct office investment in Seattle in 2016. Notable investments include 50% of the
American pet store chain
Petco,
50% of American luxury
department store
A department store is a retail establishment offering a wide range of consumer goods in different areas of the store under one roof, each area ("department") specializing in a product category. In modern major cities, the department store mad ...
chain
Neiman Marcus, 50% of
Australia
Australia, officially the Commonwealth of Australia, is a country comprising mainland Australia, the mainland of the Australia (continent), Australian continent, the island of Tasmania and list of islands of Australia, numerous smaller isl ...
n office tower development
International Towers Sydney, 50.01% of the
Ontario Highway 407
King's Highway 407, commonly referred to as Highway 407 and colloquially as the "four-oh-seven", is a 400-series highways, 400-series highway in the Provinces and territories of Canada, Canadian province of Ontario. Comprising a tolled privatel ...
toll highway
A toll road, also known as a turnpike or tollway, is a public or private road for which a fee (or ''Toll (fee), toll'') is assessed for passage. It is a form of road pricing typically implemented to help recoup the costs of road construction and ...
,
21.5% of
South Korea
South Korea, officially the Republic of Korea (ROK), is a country in East Asia. It constitutes the southern half of the Korea, Korean Peninsula and borders North Korea along the Korean Demilitarized Zone, with the Yellow Sea to the west and t ...
n
discount store chain
Homeplus, and 19.8% of multinational media corporation
Entertainment One. Other prominent investments are made in Indian companies
Byju's,
Delhivery, Embassy Office Parks, Eruditus,
Power Grid Corporation of India,
SBI Life Insurance Company etc.
As outlined in its Policy on Responsible Investing, first adopted in 2005, the Board considers environmental, social and governance (ESG) issues/factors from a risk/return point of view and encourages companies to adopt policies and practices that enhance long-term financial performance.
Future and direction
John Graham is the current Chief Executive Officer of the CPPIB, replacing
Mark Machin on February 26, 2021.
Mark Machin resigned after traveling to the United Arab Emirates to receive a
COVID-19 vaccine. Prior to Machin,
Mark Wiseman
Mark Wiseman (born 1970) is a Canadian businessman and financier who has worked with many institutional investors and the Government of Canada. He was formerly the chair of the Alberta Investment Management Corporation; a manager at BlackRock; an ...
was CEO until June 13, 2016.
According to the 2013 Annual Report, about 63% of the fund's assets were invested outside Canada, largely in the
United States
The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
, Europe and Asia. In addition, the CPPIB announced it was broadening the scope of its investments to include emerging markets, although
David Denison, CEO at the time, would not pinpoint a specific country or area. "Canada as a single market cannot accommodate the future growth of our organization," said Denison. In 2023, 86% of the fund's assets were outside Canada, the majority, in the US (36%), with 26% in Asia, 18% in Europe, 14% in Canada, and 6% in Latin America.
In recent years, the CPPIB changed direction in its investment philosophy. It evolved from investing exclusively in non-marketable government bonds to passive index-fund strategies and, in 2006, to active investment strategies.
Growth and strategy
According to the Office of the
Chief Actuary of Canada, the CPP Fund needs a real rate of return of 4.0%, over the 75-year projection period in his report, to help sustain the plan at the current contribution rate.
In December 2013, the Chief Actuary reaffirmed that the CPP is sustainable throughout the 75-year timeframe of his 2012 report. Over this long timeframe it is expected that there will be periods where returns are above or below this threshold.
Consistent with the CPPIB's mandate to maximize investment returns without undue risk of loss, they pursue a
value-added
Value added is a term in economics for calculating the difference between market value of a product or service, and the sum value of its constituents. It is relatively expressed by the demand curve, supply-demand curve for specific units of sale. ...
strategy that seeks to deliver returns over and above a market-based benchmark over the long term. That benchmark is called the CPP Reference Portfolio and under reasonable capital market assumptions, it can generate the long-term 4.0% real rate of return required to help sustain the CPP.
The CPPIB reserve fund receives its funds from the CPP and invests them like a typical large fund manager would. The CPP reserve fund seeks to achieve at least the projected return (
inflation
In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of curre ...
-adjusted) needed to help sustain the CPP , a rate set at 4.0% by 2017 in the CPP actuary's report, starting from 3.2% in 2011. As indicated in its Financial Highlights for the fiscal year ended March 31, 2013, the CPP reserve fund averaged 4.2% return in the past 5 years, and a 7.4% return in the past 10 years, above the sum of projected Canadian inflation rates and the 4.0% target identified by the CPP Actuary report, or 6.3% in nominal basis, that is required for CPP contribution sustainability.
The CPP total assets are projected to reach the following levels according to the 2021 actuarial report: (in assets):
* $671 billion by 2025.
* $991 billion by 2030.
* $1,959 billion by 2040.
* $3,562 billion by 2050.
The strategies used to achieve these targets are:
*
Diversification. In 1997, the CPP fund was 100% invested in government bonds, but it has since diversified not only by asset class, but also internationally.
*Employing basic
asset allocation
Asset allocation is the implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor's risk tolerance, goals and investm ...
theories, with diversification of investments as one of the objectives.
** The asset mix has evolved over the years as follows:
* The global regional mix has evolved over the years as well:
*Using equity firms to assist in achieving targets for each asset class. The CPP reserve fund allocates certain amounts to various pre-qualified
equity firms to be managed and used towards reaching the growth targets. For example, the CPP Investment Board hires private equity firms to help it invest in private companies, fund managers to help it invest in public equities, bond managers to assist in investing in
bonds (within Canada and foreign bonds), and so forth.
Significant transactions
CPPIB, as part of a consortium, first invested US$300 million in
Skype
Skype () was a proprietary telecommunications application operated by Skype Technologies, a division of Microsoft, best known for IP-based videotelephony, videoconferencing and voice calls. It also had instant messaging, file transfer, ...
in September 2009. In May 2011 CPPIB sold its stake in Skype to
Microsoft
Microsoft Corporation is an American multinational corporation and technology company, technology conglomerate headquartered in Redmond, Washington. Founded in 1975, the company became influential in the History of personal computers#The ear ...
for US$1.1 Bn before debt repayment,
[CPPIB scoops windfall as Microsoft buys Skype for $8.5-billion]
The Globe and Mail. Retrieved on 2013-07-26. or US$933 million.
In 2009 CPPIB also invested in the $5.2-billion purchase of
IMS Health with
Texas Pacific Group and the $2.1-billion purchase of
Macquarie Communications Group.
[
In 2011, the CPPIB managed to increase net assets by 18%, from $129 billion to $153 billion, despite weakness in stock markets. The increase was due to the fund's private equity holdings and real estate portfolio.
In 2012 CPPIB acquired a 45% stake in ten shopping centers and two redevelopment sites from ]Westfield Group
Westfield Group was an Australian shopping centre company that existed from 1960 to 2014, when it split into two independent companies: Scentre Group, which owns and operates the Australian and New Zealand Westfield shopping centre portfolio; ...
. CPPIB's equity investment was $1.8 billion and the total gross value of the properties was $4.8 billion.
In November 2013, then President & CEO, Mark Wiseman
Mark Wiseman (born 1970) is a Canadian businessman and financier who has worked with many institutional investors and the Government of Canada. He was formerly the chair of the Alberta Investment Management Corporation; a manager at BlackRock; an ...
, announced a commercial real estate venture in India with Shapoorji Pallonji. CPPIB would own 80% of the US$200 million venture.
In May 2015, Unibail-Rodamco revealed it had signed an agreement with the Canada Pension Plan Investment Board to sell its 46.1 percent stake in German shopping mall operator MFI AG for €394 million.
In May 2015, the sale of a joint 70% investment with BC Partners in U.S. cable television operator Suddenlink for over US$9 Bn to Altice was also announced. The interest had been acquired in a 2012 leveraged buyout
A leveraged buyout (LBO) is the acquisition of a company using a significant proportion of borrowed money (Leverage (finance), leverage) to fund the acquisition with the remainder of the purchase price funded with private equity. The assets of t ...
.
In June 2015, CPPIB announced it would acquire GE Capital's private equity lending portfolio for $12 billion.
In July 2015, citing strong population growth
Population growth is the increase in the number of people in a population or dispersed group. The World population, global population has grown from 1 billion in 1800 to 8.2 billion in 2025. Actual global human population growth amounts to aroun ...
as the reason, CPPIB announced it was investing in rental housing with Minto Group. CPPIB acquired a 60% ownership interest worth $105 million in Minto High Park Village, a multifamily residential rental property with 750 units in Toronto. Peter Ballon stated, "This marks our first direct investment in Canadian multifamily real estate. With strong population growth and solid rental demand, Toronto is one of the top rental markets in Canada and a key strategic market for us in this sector."
In October 2015, CPPIB announced plans to acquire Encana's Denver-Julesberg Basin Colorado oil and gas assets for $900 million (US). The deal, with Denver-based partner, private equity firm The Broe Group, having a 5% share in the new Crestone Peak Resources partnership, was completed in July 2016. Broe will manage the portfolio of more than 1600 wells.
In November 2015, CPPIB and CVC Capital Partners acquired American pet supplier Petco in a deal worth $4.6 billion.
In March 2016, Brookfield Corporation, the British Columbia Investment Management Corporation (BCI), Qatar Investment Authority, and Qube, a group that includes CPPIB, made a joint $6B bid for Australian port operator Asciano.
In July 2016, CPPIB and Calgary
Calgary () is a major city in the Canadian province of Alberta. As of 2021, the city proper had a population of 1,306,784 and a metropolitan population of 1,481,806 making it the third-largest city and fifth-largest metropolitan area in C ...
-based Wolf Midstream Inc. purchased a 50% stake in Devon Energy's Access Pipeline located in Alberta
Alberta is a Provinces and territories of Canada, province in Canada. It is a part of Western Canada and is one of the three Canadian Prairies, prairie provinces. Alberta is bordered by British Columbia to its west, Saskatchewan to its east, t ...
.
In September 2016, CPPIB and Cinven acquired the business-to-business accommodation wholesaler Hotelbeds for a purchase price of around €1.3 billion.
In October 2019, CPPIB announced to invest alongside KKR in acquiring stake in German Axel Springer SE
Axel Springer SE () is a European multinational corporation, multinational mass media, mass and online media company, based in Berlin, Germany. The company offers printing and publishing of advertisements, digital classifieds portfolio, marketi ...
. CPPIB's financial commitment will be at least €500 million.
In November 2019, it was reported in India that CPPIB and Brookfield Corporation were seeking to buy out the stakes of other investors into India's largest green power company, ReNew Energy Global. Brookfield, was looking to buy out Abu Dhabi Investment Authority, and CPPIB bought out Goldman Sachs
The Goldman Sachs Group, Inc. ( ) is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered in Lower Manhattan in New York City, with regional headquarters in many internationa ...
in 2023 to become the majority owner.
In January 2021, CPPIB and Greystar announced they were partnering to pursue multifamily real estate development opportunities in the United States. Greystar, the largest apartment owner in the United States with over 108,500 units, teamed up with Ottawa-based Minto Apartment Real Estate Investment Trust
A real estate investment trust (REIT, pronounced "reet") is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of real estate, including office and apartment buildings, studios, warehouses, hos ...
also in 2021. In December, Peter Ballon, then Managing Director and Global Head of Real Estate, announced a 95% stake in an US$840 million alliance with Greystar to develop and acquire purpose-built single-family rental communities in the United States.
In November 2022, CPPIB bought Brookfield Corporation's portfolio of Indian road assets for $1.2 billion.
CPPIB pledged up to $30 million to plant trees in Brazil, in August 2023.
In December 2023, CPPIB Credit Investments III Inc., teamed up with Blackstone's BREDS and BREIT, and Rialto Capital Management, to take over 2,600 mostly performing loans from a failed bank. The loans were on market rate multifamily, retail and office properties primarily located in the New York metropolitan area.
In 2024, CPPIB Credit Investments Inc. announced a US$750 million partnership with Redwood Trust, Inc., into residential mortgage assets, and a joint venture with Kennedy Wilson to develop a single-family rental housing in the United Kingdom.
A Bloomberg
Bloomberg may refer to:
People
* Daniel J. Bloomberg (1905–1984), audio engineer
* Georgina Bloomberg (born 1983), professional equestrian
* Michael Bloomberg (born 1942), American businessman and founder of Bloomberg L.P.; politician a ...
report revealed Canadian pension funds lost $1.24 trillion on their real estate holdings in fiscal 2024. CPPIB reported a 5% loss, while the Public Sector Pension Investment Board (PSPIB) lost 16%. By February 2024, CPPIB had sold its stakes in three commercial properties at discounted prices: a Santa Monica property at a 75% discount for its share purchased in 2018; two towers in Vancouver for 20% less than what it was valued in 2023; and, its share in a Manhattan office building for $1.
In January 2025, CPPIB announced a 95% stake in a $500 million joint rental-housing venture in Korea with Mangrove (MGRV); an equal partnership with Cyrela Brazil Realty to develop residential condominiums in São Paulo, Brazil; and, sold its 49% stake in a retail and residential development in China, with Longfor Properties.
In January 2025, the Globe & Mail reported Brookfield Corporation had bought the stakes of partners CPPIB and Alberta Investment Management Corporation (AIMCo) in the Maritime Life Building in Toronto which had been listed twice in three years without attracting a suitable offer. The transaction occurred before the end December 2024. Net proceeds from the sale were C$107 million.
Performance
The performance and the market value of the CPP Fund is reported on a quarterly basis.
Investments held by the CPP Fund include equities, fixed income (primarily government bonds), and inflation-sensitive assets (real estate, inflation-linked bonds and infrastructure). The CPPIB is making a major push into real estate, especially real estate in India.
Historical information on the performance of assets available to the Canada Pension Plan, and financial statements of the CPP Investment Board, can be found under the Quarterly Reports and Annual Reports section of the CPPIB's website.
The total growth of the CPP Reserve Fund is derived from the CPP contributions of working Canadians, and the return on investment of the contributions. The portion of CPP Reserve Fund growth due to CPP contributions varies from year to year, but have shown a slight decrease in the past 3 years. The historical growth with the investment performance is tabulated as follows:
Board of directors
* Heather Munroe-Blum
*Sylvia Chrominska
*Dean Connor
*William 'Mark' Evans
*Ashleigh Everett
*Tahira Hassan
* Chuck Magro
*John Montalbano
*Barry Perry
*Mary Phibbs
*Boon Sim
*Kathleen Taylor
Criticism
In 2009 executives of the Canada Pension Plan Investment Board took a 31.4% cut in their bonuses after questions were raised about the level of compensation at the crown corporation.
As worldwide concern for global climate change implications increasingly call on institutional divestment from fossil fuels, CPPIB has also been criticized for failing to do so, both on climate grounds and financial loss.
CPPIB and other institutional investors involved in rental housing and REITs, have been blamed for rising rents and evictions, and hailed for increasing and renovating supply, in Canada and abroad. The financialization of housing has become a prominent political debate in Canada. In 2022, then Prime Minister Justin Trudeau promised to address the issue with new tax policy but abandoned this idea in May 2024.
In May 2019, Conservative
Conservatism is a cultural, social, and political philosophy and ideology that seeks to promote and preserve traditional institutions, customs, and values. The central tenets of conservatism may vary in relation to the culture and civiliza ...
MP Tom Kmiec ( Calgary Shepard) criticized the CPPIB during a meeting of the Canadian House of Commons Standing Committee on Finance
The House of Commons Standing Committee on Finance (FINA) is a standing committee of the House of Commons of Canada.
Mandate
*pre-budget consultations
*briefing sessions by departmental officials on federal government programs
*examination of plan ...
for its indirect investments in two Chinese firms, Hikvision
Hangzhou Hikvision Digital Technology Co., Ltd., often shortened to Hikvision, is a Chinese partly State-owned enterprise, state-owned manufacturer and supplier of video surveillance equipment for civilian and military purposes, headquartered in ...
and Dahua Technology, which supply surveillance technology to the Chinese government used to repress Uyghurs
The Uyghurs,. alternatively spelled Uighurs, Uygurs or Uigurs, are a Turkic peoples, Turkic ethnic group originating from and culturally affiliated with the general region of Central Asia and East Asia. The Uyghurs are recognized as the ti ...
in China's western Xinjiang
Xinjiang,; , SASM/GNC romanization, SASM/GNC: Chinese postal romanization, previously romanized as Sinkiang, officially the Xinjiang Uygur Autonomous Region (XUAR), is an Autonomous regions of China, autonomous region of the China, People' ...
region. CPPIB CEO Mark Machin stated that the holdings are part of indices which CPPIB invests in and that those investments had been red-flagged for potential future divestment.
The firm's former CEO Mark Machin resigned following a controversy surrounding his choice to receive the COVID-19 vaccine in the United Arab Emirates
The United Arab Emirates (UAE), or simply the Emirates, is a country in West Asia, in the Middle East, at the eastern end of the Arabian Peninsula. It is a Federal monarchy, federal elective monarchy made up of Emirates of the United Arab E ...
, whilst Canada was still struggling to acquire vaccines.
See also
* Caisse de dépôt et placement du Québec
* Public Sector Pension Investment Board
* OMERS
References
External links
Official website
{{authority control
1997 establishments in Ontario
Financial services companies established in 1997
Canadian companies established in 1997
Investment in Canada
Canada Pension Plan
Investment management companies of Canada
Social security in Canada
Federal departments and agencies of Canada
Canadian federal Crown corporations
Financial services companies based in Toronto
Employment and Social Development Canada