The Canada Pension Plan Investment Board (CPPIB) will continue to invest internationally, according to president and CEO Mark Wiseman.
“As an institutional investor housed in a country that represents less than 3% of world market capitalization, CPPIB’s ability to access markets beyond Canada’s borders and to flourish in international economies is crucial to our success,” he said in a speech to the C.D. Howe Institute in Toronto on Thursday.
About 65% of the plan’s $190 billion portfolio is invested outside of Canada and that percentage is expected to increase. In the past month, the CPPIB announced deals to acquire U.S. retailer Neiman Marcus and real estate located in South Korea.
Wiseman added that the Canadian market is simply too small for an investor of its size and appetite for long-term, risk-adjusted returns.
The CPPIB currently has international offices in London and Hong Kong, and almost 10% of its total headcount is located internationally.
“We’re not merely investing in local talent, but in top talent as well,” he said. “We need to hire the top global in all of our offices, including attracting top quality international employees to Toronto.”
The CPPIB also wants to replicate its international expertise at the board and governance level.
Last year, it made a proposal to amend the Canada Pension Plan Investment Board Act so that three of the 12 directors could be non-Canadian residents or international directors.
“To succeed,” he explained, “we must continue to invest in the resources we need to succeed in highly competitive global markets.”
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