REFILE-CPPIB notches 16.5 pct return, eyes developing markets for deals

Fri May 23, 2014 3:39pm EDT
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(Fixes spelling of Wiseman in paragraph 9)

By Andrea Hopkins

TORONTO May 23 (Reuters) - The Canada Pension Plan Investment Board, one of the world's biggest dealmakers, said it is hard to find good deals because most assets are fully priced, but it will be patient and focus on emerging markets to find deals that offer long-term value.

CPPIB, which manages Canada's national pension fund, said on Thursday its assets rose to a record C$219.1 billion ($201.39 billion) at the end of fiscal 2014, as its investment portfolio returned 16.5 percent for the year ended March 31.

Chief Executive Mark Wiseman said CPPIB will put a disproportionate amount of effort into finding deals in developing markets because its long-term investment horizon allows it more time than many competitors to reap the benefits.

"We are continuing to try and develop our portfolio in growth markets, places like India, Brazil, China - we see those markets providing good long-term value for the fund over all," Wiseman told Reuters following the release of the fund manager's results.

CPPIB opened an office in Sao Paulo in April to access Latin American markets including Brazil, Peru, Chile, Colombia and Mexico.

Wiseman said the flow of acquisitions will likely remain subdued in 2015 because competitors have come back into the market after stepping back in the wake of the financial crisis, and there are lots of capital chasing investment opportunities.

"In my career as a investor this is probably the tightest market to operate in as a value investor," he told reporters. "Assets are by and large fully priced ... and if I had to use one word to describe the mentality around here it is 'patient.'"   Continued...