The Canadian Pension Plan is one of the world’s 10 biggest national retirement funds and is seen as a model of good management.
To grow and prosper, it has to look anywhere and everywhere for investments. In fact, two-thirds of what our pension plan owns is outside Canada. That includes some surprising ventures — from student dorms to cruiseship lines to film distribution companies.
Here’s a look at some of the far-flung investments the CPPIB has made on your behalf:
Student housing: Students always need a place to live. In January, the CPPIB invested in a company that owns student housing in 14 American states. Among others, University House Communities Group (UHC) serves Georgia Tech, Arizona State University and the University of Texas.
It's not the dorm living your parents knew. These high-end facilities resemble condos and include pools, cabanas and fitness centres. In March, CPPIB bought more student housing, this time in Britain. Liberty Living owns 41 dorms and apartments in 17 British university communities.
CPPIB ownership: UHC 47.5%; Liberty 100%
Investment: $1.4B (U.S.) in UHC; £1.1B in Liberty
Toll roads: Like dorms, road tolls are an evergreen stream of cash. CPPIB is a big partner in Ontario’s Highway 407 ETR. CPPIB also invests in five toll roads in Santiago, Chile, through Grupos Costanera.
CPP IB ownership: 407 ETR 40%; Grupos Costanera 49.9%
Investment: $4.1B in 407; $1.14B in Costanera
Luxury retail: Expensive things have high profit margins. That’s why CPPIB owns shares in such companies as Daimler AG and Carnival Cruise Lines. It also co-owns Neiman Marcus, plus two Bergdorf Goodmans in Manhattan.
CPPIB ownership: Equal majority stake in Neiman Marcus.
Investment: $6B (U.S.) from all investors in Neiman Marcus; $453M* in Carnival; $13M Daimler.*
Consumer: In September, 2015 CPPIB bought an interest in Homeplus, the second largest retailer in South Korea. The 113 stores typically sell groceries, clothing, electronics and sporting goods.
That same month CPPIB bought a stake in Entertainment One Ltd. (eOne) an international distributor of film, television and family entertainment content. eOne has a library of more than 40,000 film and television titles, 4,500 hours of television programming and 45,000 music tracks. It includes the rights to The Hunger Games, the Divergent series and the Twilight saga.
CPPIB Ownership: Homeplus 21.5%; eOne 19.8%
Investment: $534M (U.S.) in Homeplus; £194M in eOne
Real Estate: CPPIB owns office towers and shopping centres around the world. The portfolio includes the 72-storey First Canadian Place.
International Towers Sydney is CPPIB's first office development in Australia. It is located at Barangaroo South, a new waterfront financial district on Sydney Harbour. It covers 7.6 hectares and is still under construction.
CPPIB ownership: First Canadian Place 25%; International Towers 50%
Investment: $193.5M in First Canadian Place; $1B (AUS) in International Towers
* Share value Mar. 31, 2016 in Canadian dollars.
To grow and prosper, it has to look anywhere and everywhere for investments. In fact, two-thirds of what our pension plan owns is outside Canada. That includes some surprising ventures — from student dorms to cruiseship lines to film distribution companies.
Here’s a look at some of the far-flung investments the CPPIB has made on your behalf:
Student housing: Students always need a place to live. In January, the CPPIB invested in a company that owns student housing in 14 American states. Among others, University House Communities Group (UHC) serves Georgia Tech, Arizona State University and the University of Texas.
It's not the dorm living your parents knew. These high-end facilities resemble condos and include pools, cabanas and fitness centres. In March, CPPIB bought more student housing, this time in Britain. Liberty Living owns 41 dorms and apartments in 17 British university communities.
CPPIB ownership: UHC 47.5%; Liberty 100%
Investment: $1.4B (U.S.) in UHC; £1.1B in Liberty
Toll roads: Like dorms, road tolls are an evergreen stream of cash. CPPIB is a big partner in Ontario’s Highway 407 ETR. CPPIB also invests in five toll roads in Santiago, Chile, through Grupos Costanera.
CPP IB ownership: 407 ETR 40%; Grupos Costanera 49.9%
Investment: $4.1B in 407; $1.14B in Costanera
Luxury retail: Expensive things have high profit margins. That’s why CPPIB owns shares in such companies as Daimler AG and Carnival Cruise Lines. It also co-owns Neiman Marcus, plus two Bergdorf Goodmans in Manhattan.
CPPIB ownership: Equal majority stake in Neiman Marcus.
Investment: $6B (U.S.) from all investors in Neiman Marcus; $453M* in Carnival; $13M Daimler.*
Consumer: In September, 2015 CPPIB bought an interest in Homeplus, the second largest retailer in South Korea. The 113 stores typically sell groceries, clothing, electronics and sporting goods.
That same month CPPIB bought a stake in Entertainment One Ltd. (eOne) an international distributor of film, television and family entertainment content. eOne has a library of more than 40,000 film and television titles, 4,500 hours of television programming and 45,000 music tracks. It includes the rights to The Hunger Games, the Divergent series and the Twilight saga.
CPPIB Ownership: Homeplus 21.5%; eOne 19.8%
Investment: $534M (U.S.) in Homeplus; £194M in eOne
Real Estate: CPPIB owns office towers and shopping centres around the world. The portfolio includes the 72-storey First Canadian Place.
International Towers Sydney is CPPIB's first office development in Australia. It is located at Barangaroo South, a new waterfront financial district on Sydney Harbour. It covers 7.6 hectares and is still under construction.
CPPIB ownership: First Canadian Place 25%; International Towers 50%
Investment: $193.5M in First Canadian Place; $1B (AUS) in International Towers
* Share value Mar. 31, 2016 in Canadian dollars.
