(Fixes spelling of Wiseman in paragraph 9)
By Andrea Hopkins
TORONTO May 23 The Canada Pension Plan
Investment Board, one of the world's biggest dealmakers, said it
is hard to find good deals because most assets are fully priced,
but it will be patient and focus on emerging markets to find
deals that offer long-term value.
CPPIB, which manages Canada's national pension fund, said on
Thursday its assets rose to a record C$219.1 billion ($201.39
billion) at the end of fiscal 2014, as its investment portfolio
returned 16.5 percent for the year ended March 31.
Chief Executive Mark Wiseman said CPPIB will put a
disproportionate amount of effort into finding deals in
developing markets because its long-term investment horizon
allows it more time than many competitors to reap the benefits.
"We are continuing to try and develop our portfolio in
growth markets, places like India, Brazil, China - we see those
markets providing good long-term value for the fund over all,"
Wiseman told Reuters following the release of the fund manager's
CPPIB opened an office in Sao Paulo in April to access Latin
American markets including Brazil, Peru, Chile, Colombia and
Wiseman said the flow of acquisitions will likely remain
subdued in 2015 because competitors have come back into the
market after stepping back in the wake of the financial crisis,
and there are lots of capital chasing investment opportunities.
"In my career as a investor this is probably the tightest
market to operate in as a value investor," he told reporters.
"Assets are by and large fully priced ... and if I had to use
one word to describe the mentality around here it is 'patient.'"
The fund manager struck 103 global deals in fiscal 2014, 45
of which were over C$200 million.
Wiseman said CPPIB will focus on assets like infrastructure,
real estate and private equity, and build out its public market
capabilities in those developing markets.
The eighth year of active management of the fund has boosted
foreign assets to 69 percent of the portfolio, while Canadian
assets make up 31 percent of the book.
The 16.5 percent 2014 investment gain was up from 10.1
percent a year earlier and its fifth straight gain after the
fund manager suffered losses in 2008 and 2009.
Investment returns were led by a 36.8 percent gain in
private emerging market equities, a 35.1 percent rise in private
foreign developed market equities, a 30.1 percent gain in
Canadian private equities, a 26.3 percent gain in public foreign
developed market equities, a 20.0 percent gain in "other debt,"
an 18.0 percent gain in real estate and a 16.6 percent gain in
Weaker parts of the portfolio included investments in
Canadian public equities, which returned 15.6 percent, public
emerging market equities, which returned 5.8 percent, bonds and
money market securities, which returned 0.3 percent, and
non-marketable bonds, which notched a negative 0.1 percent
($1 = 1.0879 Canadian Dollars)
(Reporting by Andrea Hopkins; Editing by Chizu Nomiyama)