The C$7.2bn (US$4.7bn) Canada Post Corporation Pension Plan (CPCPP) is looking to hire fixed income managers to manage up to C$2.16bn (US$1.41bn), or 30% of the fund's total assets.
Doug Greaves, the pension fund's vice president and chief investment officer, said that it was likely that mandates would be tendered and managers hired within the next six months. Greaves declined to comment on the investment styles of the possible mandates.
Additionally, Greaves revealed that the fund was in final negotiations with two international equity managers to handle an unspecified amount for the fund. Although Greaves declined to say exactly how much the two managers will run, he did say that formal appointments would be made soon.
The CPCPP became operational on October 1, 2000, after the Canada Post Corporation (CPC) decided to opt out of the old 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.
So far, C$1.2bn (US$784m) had been transferred to the CPCPP as at year-end and CPC expects the transfer to be completed by September 30, 2002.
By Geoffrey Ho
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