UPDATE 3-Canada Pension Plan looks for big, global deals

Fri Nov 9, 2012 12:47pm EST
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* CPPIB seeking complex deals to beat competition

* Assets rise to record C$170.1 billion in fiscal Q2

* Five-year rate of return 2.5 pct, 10-year return 6.7 pct

* Global equity gains, active management, boost assets

By Andrea Hopkins

TORONTO, Nov 9 (Reuters) - The Canada Pension Plan Investment Board, one of the world's biggest pension funds and global dealmakers, said it was looking for big, complex acquisitions to boost its portfolio and outmaneuver rivals as the world's economy improves.

CPPIB, whose assets rose to a record C$170.1 billion in the third quarter from C$165.8 billion three months earlier, said its long-term investment horizon and increasingly skilled team of dealmakers will give it an advantage as improving U.S. and Chinese economies bring competitors back to the playing field.

"I think you'll expect to see us favoring larger and more complex deals that are global in nature," Chief Executive Officer Mark Wiseman said in an interview after the fund's second-quarter results were released.

"What we try to do is exploit the areas where we have comparative advantages, and that tends to be in larger transactions, in transactions where the value creation will play out over a long period of time, and in transactions that are occasionally complex in nature," he said.   Continued...