CPPIB CEO sees ‘no safe harbour’ across global asset classes
financialpost.comThe head of the Canada Pension Plan Investment Board said he doesn’t see an asset class worldwide that’s totally free of risk for investors like his organization.
“One theme as we look around the world and look across asset classes is there’s probably no safe harbour,” CPPIB chief executive John Graham said Wednesday in a Bloomberg Television interview. “I think you can get a little worried about almost every asset class and geography and worry about it, but, as a long-term investor, part of our thesis is to develop a long-term portfolio-construction approach.”
The pension plan, Canada’s largest, ended its last fiscal year with US$632.3 billion of net assets, with an 8 per cent return. The fund recorded a 5 per cent loss on its real estate holdings, blaming highinterest rates and work-from-home trends that have damaged the value of office properties globally.
“Our real estate’s been flat let’s say over five years, but you gotta unpick it,” Graham said. “And we’ve certainly have taken some hits in office, specifically in North America, but that has been offset partially by our Asia-Pacific portfolio, partially offset by logistics, by data centers, which have done reasonably well.”
Bloomberg.com
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