November 14, 2019 / 3:44 PM / 23 days ago

Canada's CPPIB posts over 2% return in second quarter

Nov 14 (Reuters) - The Canada Pension Plan Investment Board (CPPIB), the country’s biggest public pension fund, on Thursday reported a 2.2% return on its investments for the second quarter.

CPPIB ended the quarter with net assets of C$409.5 billion ($309.50 billion), compared with C$400.6 billion at the end of the previous quarter.

Its net income rose to C$9.2 billion from C$4.1 billion in the last quarter and C$2.3 billion a year ago.

The CPPIB, which manages Canada’s national pension fund and invests on behalf of 20 million Canadians, has diversified to become one of the world’s biggest investors in infrastructure, real estate and private equity to reduce its reliance on volatile global stock markets and low-yielding government bonds.

Investments in private equities rose to 24.2% of the total this quarter, compared with 21.8% last year. On the other hand, spending on public equities fell to 31.9% from 36.7% a year ago.

Investments in government bonds remained flat compared with last year.

Last month, CPPIB said it will invest at least 500 million euros ($551.00 million) in a KKR & Co Inc-owned holding firm conducting a public tender offer for the shares of German publisher Axel Springer.

Earlier this month, CPPIB bought renewable power producer Pattern Energy Group Inc for $2.63 billion.

$1 = 0.9074 euros $1 = 1.3231 Canadian dollars Reporting by C Nivedita in Bengaluru Editing by Saumyadeb Chakrabarty

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