CANADA - The Canada Pension Plan Investment Board (CPPIB) has appointed Donald Raymond, Goldman Sachs Investment Management's former vice president, as its new vice president - public market investments.
Raymond, who recently resigned from Goldman Sachs in New York, will take up his position with the CPPIB on September 4. Speaking about his appointment, Raymond said that: My initial priorities are to build a research infrastructure to allocate capital among passive index investing, quantitative portfolio management and active portfolio management, and develop a process for selecting and monitoring external managers.
Currently, CPPIB invests primarily in publicly traded stock index funds in Canada, the United States and internationally. Raymond said that he will recommend a diversification program by early 2002.
Recently, the CPPIB announced that it had achieved positive returns for the first quarter of the 2002 fiscal year. Canadian equities, which make up 71% of the CPPIB’s total assets, returned 3.3% in the first quarter, whilst the 29% held in foreign equities had a negative return of 1.1%.
In June, the CPP Investment Board announced plans to allocate part of its assets to private market investments as a means of diversifying its portfolio and earning long-term values above market returns.
As of June 30, 2001, the value of the CPPIB's total assets stood at C$11bn. Currently, the CPPIB runs approximately 20% of the total assets available to the Canada Pension Plan, and receives additional funds on a quarterly basis from the Canadian government. Currently, all CPPIB investments are made on a passive basis.
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