Canada pension boss sees opportunities after Trump win

Thu Nov 10, 2016 6:09pm EST
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By Matt Scuffham

TORONTO (Reuters) - The Canada Pension Plan Investment Board, one of the world's biggest dealmakers, sees potential opportunities arising from Republican Donald Trump's election victory, its chief executive said in an interview.

Mark Machin, who became CPPIB's chief executive in June, said equity markets were reacting positively to the Republican party having control of the house and senate, potentially making it easier to pass legislation, and to the possibility of lighter regulation, particularly in the financial sector.

He also identified Trump's commitment to spend big on infrastructure as a potential opportunity for investors.

"There's a lot of expectation of increased fiscal stimulus, less regulation, more economic activity, that's getting priced in here and that's obviously helping the value of the assets that we own in the country and we would expect it will throw up some interesting opportunities over time," Machin said.

Machin added that the expectation for rising interest rates in the U.S. was something that the CPPIB had been "anticipating for quite a time".

"The market's moving towards where we've had some positioning," he said.

Machin said CPPIB, the world's third biggest infrastructure investor, would be keen to invest in more U.S. infrastructure projects.

"We'd very much welcome more infrastructure opportunities. That's terrific for us," he said.   Continued...