“Canada Pension plans to double hedge fund investment”
Bloomberg News, citing sources
Quick Look
- Bloomberg News reported, citing sources, that the Canada Pension Investment Board (CPPIB) plans to double hedge fund investment from the current $800 billion to $160 billion (approximately 214 trillion won) over the next five to seven years.
- This follows the hedge fund's performance exceeding internal benchmarks, with total assets expected to nearly double.
AI-generated summary
Why It Matters
The Canada Pension Service is Canada's largest pension plan, with total assets of approximately $608 billion and is expected to nearly double over the next seven years. In the last fiscal year, most of the net profit of $3.4 billion in the capital markets and factor investment division came from hedge fund investments.
Bloomberg News reported on the 11th, citing sources, that Canada's largest pension, the Canada Pension Investment Board (CPPIB), plans to double its hedge fund investment over the next five to seven years.
Sources said that Canada Pension plans to double its hedge fund investment to $160 billion (about 214 trillion won), and is especially interested in investing in large hedge funds that have not yet invested.
This comes as Canada Pension Service expects its total assets, currently at about $608 billion, to nearly double over the next seven years, and the hedge fund's investments outperformed internal benchmarks in the fiscal year that ended in March.
In the last fiscal year, most of the net profit of $3.4 billion in the capital markets and factor investment division came from hedge fund investments.
The Abu Dhabi Investment Authority (ADIA) has also been expanding its hedge fund investment, which currently exceeds $1 trillion.
Bloomberg reported that Canada Pension's hedge fund expansion is a move that contrasts with many pension funds and foundations that are cautious about investing in new hedge funds as private equity fund dividend payments have decreased and reinvestment cash has become scarce.
What to Watch
AI outlook — possibilities, not facts
The Canada Pension Service will expand its hedge fund investment to $160 billion within the next 5 to 7 years.
Likely · Within years
Open Questions
- What are the specific hedge fund investment targets?
- What is the expected return on investment expansion?
- When should you start investing?
