Canadian pensions underperform weighted down by Private Equity portfolios

Maybe they should have invested in Canadian Mining equities, after all…🤔

The FT reports Canada's big pension funds underperformed last year as disappointing returns from private equity investments, notably a downturn in the buyout sector, weighed on their portfolios.

Canada Pension Plan Investment Board CPPIB, Ontario Teachers' Pension Plan OTPP and Caisse de dépôt et placement du Québec CDPQ and OLMERS have all lagged their benchmarks over the past year, according to their latest reports.

CPPIB, which manages C$714bn ($516bn) pension assets for 22mn Canadians, reported this week that its allocation to private equity — which makes up 23 per cent of the core portfolio — had been the biggest relative drag on its performance over the past five years. 

OLMERS fared better, but only because their benchmark is much lower…

See the whole article in the FT here:

https://www.ft.com/content/279fdc90-e77f-47da-b5ec-2fb6d7206ca6

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