CPPIB CEO sees ‘no protected harbour’ throughout international asset courses

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The head of the Canada Pension Plan Investment Board mentioned he doesn’t see an asset class worldwide that’s completely freed from danger for traders like his group.

“One theme as we glance world wide and look throughout asset courses is there’s most likely no protected harbour,” CPPIB chief government John Graham mentioned Wednesday in a Bloomberg Television interview. “I believe you will get just a little anxious about virtually each asset class and geography and fear about it, however, as a long-term investor, a part of our thesis is to develop a long-term portfolio-construction strategy.”

The pension plan, Canada’s largest, ended its final fiscal 12 months with US$632.3 billion of internet property, with an 8 per cent return. The fund recorded a 5 per cent loss on its actual property holdings, blaming excessive rates of interest and work-from-home tendencies which have broken the worth of workplace properties globally.

“Our actual property’s been flat let’s say over 5 years, however you gotta unpick it,” Graham mentioned. “And we’ve definitely have taken some hits in workplace, particularly in North America, however that has been offset partially by our Asia-Pacific portfolio, partially offset by logistics, by information facilities, which have accomplished moderately properly.”

With help from Tom Mackenzie.

Bloomberg.com

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