When CPP Investments was created in 1997, Canadian legislators insisted on rules to prevent political interference with decision-making, including investment selection. That independence remains firmly in place.
We operate at arm’s length from federal and provincial governments, which is to say that elected officials have no say in the day-to-day management of CPP Investments. We also work independent of the Canada Pension Plan (CPP) itself. Our independent, highly qualified, professional Board of Directors provides oversight of the organization.
Our job is to help the CPP meet its obligations to Canadians who contribute and/or benefit from the Fund. We do this by investing assets in the Fund to maximize returns without taking unnecessary risk. We manage the Fund in the best interest of CPP contributors and beneficiaries.
Just as important, CPP Fund assets are kept separate from government funds. Neither federal nor provincial governments can access the CPP Fund – that money is only available to pay CPP benefits and related costs.
Making sure that there is transparency around all of this is important to us. CPP Investments makes timely disclosure to the public of material activities. That includes new investments, partnerships, quarterly and annual financial results and matters that might impact our reputation. Our annual report is tabled in parliament and we hold public meetings every two years.
CPP Investments’ management reports to our Board of Directors, not to governments. The Board approves our investment policies, determines strategic direction (in collaboration with CPP Investments management) and approves key decisions about how we operate. Our Board is in turn accountable for their performance under a rigorous accountability regime which includes reporting to the federal and provincial Finance Ministers who serve as the stewards of the CPP.
Internally, we are led by a senior management team with a long history of global investment management leadership experience.
We have strict risk management policies and controls in place. And we measure outcomes to ensure we remain aligned to our mandate. Both contribute to careful, effective decision making.
In addition to our legal requirements, we work hard to ensure that the business of CPP Investments is always conducted responsibly and in a principled manner. Our Code of Conduct lays out the ethical behaviour required of all CPP Investments employees.