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Total Fund Management

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Total Fund Management

The Total Fund Management (TFM) department focuses on long-term total portfolio design as well as ongoing implementation of the total portfolio investment framework.

TFM ensures CPP Investments’ investing activities collectively produce a total portfolio that maximizes long-term returns without taking undue risk. The following activities achieve this:

  • Working with our Board of Directors to clearly articulate and interpret our mandate, objectives, and key constraints
  • Designing optimal investment portfolios that exploit the three sources of return:  diversification, security selection and strategic tilts
  • Aligning activities within the Investment Departments to support a total portfolio aim
  • Building and operating an investment process allowing us to manage the Investment Portfolios in support of total portfolio aims

TFM is responsible for implementing an investment framework that includes:

  • Long-term vision for the investment portfolios composition five or more years into the future;
  • Partnership with Investment Departments to characterize and allocate to investment strategies over one and five-year horizons, with the aim of delivering a long-term portfolio over time; and
  • Work on the total fund daily investment cycle, including all processes, systems and data needed to structure the portfolios in response to ongoing cash flow and exposures into and out of the CPP Investments Fund.

TFM is comprised of five groups:

Portfolio Design (PD)

 

Portfolio Design allocates the Total Fund in a systematic and diversified manner by articulating a set of factors that characterize global investment markets, selecting those that offer a reliable long-term premium for bearing risk, and guiding the allocations to assets among active and balancing programs to deliver soundly diversified factors.

Active Portfolio Management (APM)

 

Active Portfolio Management is responsible for aligning active program activities with CPP Investments’ desired long-term portfolio.

Balancing Portfolio Management (BPM)

 

Balancing Portfolio Management is responsible for the day-to-day management of the Balancing Portfolio. The objective of managing this portfolio is to ensure the Total Fund has the desired exposures once the Active Program exposures are taken into account.

Balancing and Collateral (B&C)

 

Balancing and Collateral is responsible for the implementation and delivery of the balancing portfolios (excluding credit) and is also responsible for the delivery and management of the fund’s leverage and liquidity.

Portfolio Engineering (PE)

 

Portfolio Engineering builds systematized investment processes to support the design of CPP Investments’ investment strategy and the management of the Total Fund, and provides value-added analytics and insights to support Total Fund portfolio management decision-making.

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