Canada Pension Plan to Hedge Funds: Donít Ask, Donít Tell

Date: Wednesday, March 3, 2004

Bloomberg reports that the Canada Pension Plan Investment Board, which manages the country's taxpayer-funded retirement plan, with assets of C$66 billions ($49 billion) won't invest in hedge funds because they are often too risky, expensive and opaque, the National Post reported, citing an interview with Chief Executive John MacNaughton. Several Canadian pension managers, led by Caisse de Depot et Placement du Quebec and the Ontario Teachers' Pension Plan, are increasing their hedge-fund investments to diversify their portfolios, which mostly comprise of stocks and bonds. The CPP Investment Board has decided to avoid hedge funds in favor of other alternative investments such as real estate, private equity and infrastructure.