Canada's largest pension fund targets real assets in India, citing growth and robust public markets
India has emerged as a top destination for Canadian pension capital, with the Canada Pension Plan Investment Board (CPPIB) tripling its assets under management in the country to approximately US$22bn over the past five years, according to chief executive John Graham.
According to Financial Post, Graham stated in a media briefing in Mumbai that CPPIB will continue to boost its investments in India, focusing on “real assets such as energy, infrastructure and real estate, where there is opportunity to invest at scale”.
As of the end of June, the fund’s net assets in India stood at around $30bn, up from $10bn in 2020.
CPPIB has recently increased its infrastructure portfolio in India by topping up its investment in the National Highways Infrastructure Trust and committing capital to funds managed by Kedaara Capital and Accel Partners.
The fund also formed a joint venture with RMZ Corp. for an office park project and exited a real estate platform with Phoenix Mills Ltd. for 54.5bn rupees in July.
Graham highlighted India’s economic growth rate and robust public markets as “positive factors” for investment.
He also noted that global asset managers such as KKR & Co. and Blackstone Inc. are ramping up their presence in the country. This trend reflects a broader reordering of capital flows as investors look beyond China.
Globally, CPPIB reported a one percent return for the fiscal quarter ended June 30, as the weak US dollar offset gains in stocks and energy assets.
