SINGAPORE — Canada’s massive pension fund plans to invest up to a third of its funds in emerging markets over the next five years and India is an important destination, according to a senior executive.
The Canada Pension Plan Investment Board (CPPIB) manages about 434.4 billion Canadian dollars ($329.75 billion) as of June 30. A bulk of its investments are in North America — around 34% of total assets are allocated in the United States — followed by Asia.
“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 by email.
“Our investments in India span different asset classes including infrastructure, real estate, public and private equities, funds and co-investments and credit,” Kim said, adding, “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.”
CEO Mark Machin recently told CNBC that the pension fund was reviewing its bond holdings in light of near zero interest rates.