The Canada Pension Plan Investment Board’s (CPPIB) infrastructure portfolio outperformed the total fund and almost all asset classes for the fiscal year ended 31 March 2019, as it continues to take on new investments, according to a 15 May press release.
CPPIB reported a net annual return of 8.9% for the fiscal year, while infrastructure returned 14%. The fund’s total net assets recorded USD 392bn, a USD 35.9bn increase compared with a year ago, as alternative assets and private investments help moderate public market volatility.
The fund’s 10-year and five-year annualized net nominal returns stand at 11.1% and 10.7%, respectively.
Infrastructure assets increased to USD 33.3bn, or 8.5% of the total fund, from USD 28.6bn, 8% of the total fund, a year ago.
The pension plan spent USD 1.9bn in new infrastructure investment for the year.
CPPIB, as part of a consortium, acquired a 51% ownership stake in WestConnex, the largest road infrastructure project in Australia. With an investment of about AUD 1.8bn (USD 1.24bn), CPPIB holds a 20.5% interest in the consortium’s AUD 9.26bn ownership stake.
It bought 30% of the units of IndInfravit Trust, which focuses on the ownership and development of toll roads and road infrastructure in India, for about CAD 200m (USD 148.7m).
It also acquired 29% of the Pacifico Sur toll road, which provides access between Guadalajara and Tepic in Mexico, for approximately CAD 185m, investing alongside Ontario Teachers’ Pension Plan and Impulsora del Desarrollo y el Empleo en América Latina, S.A.B. de C.V.
The infrastructure portfolio has 19 direct investments, consisting of 79.3% in developed markets such as North America, Western Europe and Australia and 20.7% in emerging markets, primarily in Latin America and India.