Canadian infrastructure deals scarce: CPPIB CEO

TORONTO — Officials from the country’s largest pension fund said Thursday they’d welcome the opportunity to invest in Canadian infrastructure but there’s been a limited supply of suitable assets available to purchase.

“If the opportunities were there, we’d love to look at them. We’d love to invest in them. It’s just a scarcity of opportunities,” said Mark Machin, CEO of the Canada Pension Plan Investment Board.

He said the CPPIB is constantly on the hunt for purchases around the world but finds itself frequently outbid by rivals when infrastructure comes on the market.

“That’s terrific for governments. It’s terrific for sellers. But when you’re competing to buy, it’s really razor-sharp pricing,” Machin said.

“So we’ve been quite cautious on where we’ve added assets.”

Machin and CPPIB chief investment strategist Ed Cass said they’d prefer to invest in late-stage infrastructure projects or completed projects rather than “green field” developments that need to be approved and built before they generate cash flow.

Cass said that the new federal infrastructure bank, which is being created by the Trudeau government, will be able to ”package” opportunities for late-stage investors after going through the early stages.

But Machin said that CPPIB faces no political pressure to invest in Canada, or the infrastructure bank, because the fund has a clear mandate to maximize investment returns and operates at an arms length from all levels of government.

“We’re shielded from anything along those lines,” Machin said.

His comments were made as CPPIB, created in 1999, announced that 2016-17 marked one of its best years for investment returns in a decade. As of March 31, when CPPIB’s financial year ends, it had $316.7 billion in assets — up $37.8 billion from a year before through a combination of market gains and new funds.

That trails only the $45.5 million increase in 2014-15, the biggest in the past 10 years.

For 2016-17, the fund realized a gross return of 12.2 per cent or 11.8 per cent in net return after all costs. For the 10-year period, CPPIB’s annualized gross return was 6.7 per cent or 5.1 per cent on a net basis.

Just Posted

Relatives of murdered family critical of killers’ sentences

Open letter to sentencing judge criticizes ruling allowing killers to apply for parole in 25 years

City rolling out Green Carts

Green Carts used for organics, such as yard waste, food scraps and pet waste

New teaching standards applauded

New code of standards affecting teachers, principals and superintendents to kick in Sept. 1, 2019

UPDATED: Agriculture minister speaks to cattle producers

2018 Alberta Beef Industry Conference underway in Red Deer

Updated: Red Deer gets WHL Bantam Draft and Awards Banquet

WHL will holds its draft and awards ceremony in Red Deer for next three years

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Twenty years later, figure skating’s most famous backflip remains amazing (and illegal)

Figure skating involves spins, jumps, twizzles and a whole host of other… Continue reading

You don’t need to chop like a TV chef to get the job done

Standing in line at the emergency room, makeshift bandage around my finger,… Continue reading

Seychelles swaps debt for groundbreaking marine protection

CURIEUSE ISLAND, Seychelles — With deep blue waters, white sand beaches and… Continue reading

Trump endorses raising minimum age to 21 for more weapons

WASHINGTON — President Donald Trump endorsed stricter gun-control measures Thursday, including raising… Continue reading

Red Deer blood clinic in need of 600 donors

Aunt encourages Central Albertans to donate blood after losing nephew

Court considers banning diesel cars in German cities

BERLIN — A German court began considering Thursday whether authorities should ban… Continue reading

US women beat Canada in Olympic hockey; Gisin tops Shiffrin

PYEONGCHANG, Korea, Republic Of — A tense shootout, a dazzling deke and… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month