CPPIB Plans to Double Hedge Fund Investments to 1천600억달러

The Canada Pension Investment Board plans to double its hedge fund investments to 1천600억달러 over the next five to seven years, Bloomberg News reported on November 11, citing sources.

The total asset size of the Canada Pension Plan stands at approximately 6천80억달러, and officials anticipate this figure will almost double over the same seven-year period. This expansion follows financial returns from the previous fiscal year ending in March that surpassed internal benchmarks.

Net income in the capital markets and factor investing division reached 3.4 billion dollars during that fiscal year, with the vast majority generated by hedge fund allocations. The planned increase will focus particularly on large hedge funds that currently hold no capital from the pension fund.

The move by the Canadian fund contrasts sharply with the cautious approach adopted by many other institutional investors and foundations. Those institutions have grown hesitant about deploying new capital into hedge funds as declining private equity dividend payouts have constrained their available reinvestment cash.

The Abu Dhabi Investment Authority has steadily increased its own hedge fund allocations, bringing its current portfolio size to over 1 trillion dollars.

The implementation period spans the next five to seven years, targeting an eventual portfolio valuation of 1천600억달러 for the fund’s hedge fund segment. The fiscal year ending in March demonstrated the profitability of these instruments, prompting the current expansion schedule.