Want a strong message for your clients during this period of market volatility? Look no further than the Canada Pension Plan Investment Board (CPPIB) for inspiration.
The manager of the country’s national pension fund has stated the current state of the markets is leading to some of the best opportunities for long-term investors since the end of the last financial crisis back in 2009.
Its declaration came after it revealed gross investment returns of 4.6 per cent during the quarter ending December 31, 2015. Part of the reason for its strong results was its global equities portfolio: with a weakened Canadian dollar prompting a surge in its overseas investments value. Overall, it ended the quarter boasting net assets at $282.6billion – representing an increase from $272.9billion at the culmination of its previous quarter.
According to Mark Wiseman, the company’s chief executive, CPPIB had benefited from making investments during a period when others were heading towards the exit. Now he believes there are similar opportunities available telling Reuters that “this is the most interesting investment environment we’ve seen since the wake of the financial crisis.”
Similarly to other pension funds in Canada, the CPPIB has focused on diversifying across several asset classes – including the likes of real estate and infrastructure – as well as investing in different regions.