CANADA - The C$7.2bn (US$4.7bn) Canada Post Corporation Pension Plan (CPCPP) is looking to make its first investment in alternatives, according to Doug Greaves, the pension fund's vice president and chief investment officer.
Although Greaves declined to reveal any more details, he did say that the fund would be looking at alternative investment managers and products sometime during 2002.
Greaves also revealed that the fund has finally hired two managers to run a total of C$700m (US$439.1m) in international equities mandates. The winning managers, Putnam and State Street Global Advisors, will each manage $350m (US$219.5m) for the CPP.
Additionally, Greaves said that the fund is set to hire managers to run fixed income mandates within the next three months. By December, a manager should be in place to run a Canadian index brief, whilst active managers will be hired within the next two to three months. The mandates are worth a combined total of C$2.16bn (US$1.41bn), or 30% of the fund's total assets.
The CPCPP became operational on October 1, 2000, after the Canada Post Corporation (CPC) decided to opt out of the Canadian Public Service Superannuation Act (PSSA) pension plan. The transfer of assets from the old PSSA scheme was set at C$7.2bn by the Office of the Superintendent of Financial Institutions Canada.
To date, C$1.2bn (US$784m) had been transferred to the CPCPP and the CPC expects the transfer to be completed by September 30, 2002.
By Geoffrey Ho
More needs to be done to speed up DB to DC transfers but, as Jonathan Stapleton says, more also needs to be done to protect members.
The Pensions Ombudsman (TPO) took on 2,566 early resolution cases in 2018/19 after onboarding a team from The Pensions Advisory Service (TPAS), according to its annual report and accounts.
The lifeboat fund is in a good position despite reserves taking a £0.6bn hit. But the ramifications of the EU judgment on member compensation is an area of concern for CEO Oliver Morley, writes Stephanie Baxter