August 12, 2004

The Canada Pension Plan (CPP) Investment Board announced today the appointment of Barclays Global Investors Canada and Goldman Sachs Asset Management to the Active Overlay Program, increasing the number of external managers to four. Each will manage the equivalent of a $500-million equity portfolio within the CPP reserve fund of $73.2 billion.

“Barclays Global Investors Canada and Goldman Sachs Asset Management each have world-class credentials and extensive experience managing large-scale equity portfolios. We fully expect them to become valuable partners as we work to diversify our portfolio and maximize investment returns over the long term,” said Don Raymond, Vice President, Public Market Investments, CPP Investment Board.

In April, the firms Connor, Clark & Lunn (CC&L) and UBS Global Asset Management became the CPP Investment Board’s first two active overlay managers. In total, the four external active overlay management firms will manage the equivalent of a $2 billion equity portfolio. 

The companies were selected following a rigorous evaluation process that was open to all national and international investment firms. Selection criteria included extensive expertise in the Canadian and global equity markets, excellent risk management practices and controls, clearly articulated investment processes, and the ability to handle a large, scalable investment mandate. 

The goal of the Active Overlay Program is to further diversify the CPP Investment Board’s public equity portfolio in pursuit of incrementally higher returns through active management. Unlike traditional programs, where external investment managers are given cash to invest, the CPP Investment Board’s active overlay managers will have the ability to sell securities within the CPP Investment Board equity portfolio and replace them with investments they feel will provide greater value. 

”The unique structure of this program allows the CPP Investment Board to minimize transaction costs while pursuing superior risk-adjusted returns. It also provides a clear performance measure for the external managers,” said Mr. Raymond. Compensation for the managers is primarily performance based; the firms receive a small base fee plus a percentage of the value they create.



Barclays Global Investors Canada
Since opening their Canadian office in 1992, Barclays Global Investors has grown to be one of Canada’s largest investment managers, with more than $44 billion in assets under management on behalf of Canadian pension plans, retail investors and foundations and endowments. With global assets in excess of $1.5 trillion, Barclays Global Investors has evolved to be one of the world’s premier providers of structured investment solutions in equity, fixed income and currency markets worldwide. Barclays Global Investors’ investment process is driven by quantitative research and the application of science and technology in all its strategies. Barclays Global Investors Canada is a majority-owned subsidiary of Barclays Bank PLC.

Goldman Sachs Asset Management
Goldman Sachs Asset Management is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which manages US$415 billion. Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1989 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm. 

CPP Investment Board
The CPP Investment Board is a Crown corporation created by an Act of Parliament in December 1997. It invests in capital markets the funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are currently invested in equities and real estate to balance the cash and bonds owned by the Canada Pension Plan. By increasing the long-term value of funds, the CPP Investment Board will help the Canada Pension Plan to keep its pension promise to Canadians. Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. Its fiscal year is from April 1 to March 31. For more information about the CPP Investment Board, visit www.cppib.ca.

Amounts are in Canadian dollars unless specified.

For further information contact:

John Cappelletti

Manager – Communications and Stakeholder Relations

416-868-0308

jcappelletti@cppib.ca

August 12, 2004

The Canada Pension Plan (CPP) Investment Board announced today the appointment of Barclays Global Investors Canada and Goldman Sachs Asset Management to the Active Overlay Program, increasing the number of external managers to four. Each will manage the equivalent of a $500-million equity portfolio within the CPP reserve fund of $73.2 billion.

"Barclays Global Investors Canada and Goldman Sachs Asset Management each have world-class credentials and extensive experience managing large-scale equity portfolios. We fully expect them to become valuable partners as we work to diversify our portfolio and maximize investment returns over the long term," said Don Raymond, Vice President, Public Market Investments, CPP Investment Board.

In April, the firms Connor, Clark & Lunn (CC&L) and UBS Global Asset Management became the CPP Investment Board's first two active overlay managers. In total, the four external active overlay management firms will manage the equivalent of a $2 billion equity portfolio. 

The companies were selected following a rigorous evaluation process that was open to all national and international investment firms. Selection criteria included extensive expertise in the Canadian and global equity markets, excellent risk management practices and controls, clearly articulated investment processes, and the ability to handle a large, scalable investment mandate. 

The goal of the Active Overlay Program is to further diversify the CPP Investment Board's public equity portfolio in pursuit of incrementally higher returns through active management. Unlike traditional programs, where external investment managers are given cash to invest, the CPP Investment Board's active overlay managers will have the ability to sell securities within the CPP Investment Board equity portfolio and replace them with investments they feel will provide greater value. 

"The unique structure of this program allows the CPP Investment Board to minimize transaction costs while pursuing superior risk-adjusted returns. It also provides a clear performance measure for the external managers," said Mr. Raymond. Compensation for the managers is primarily performance based; the firms receive a small base fee plus a percentage of the value they create.



Barclays Global Investors Canada
Since opening their Canadian office in 1992, Barclays Global Investors has grown to be one of Canada's largest investment managers, with more than $44 billion in assets under management on behalf of Canadian pension plans, retail investors and foundations and endowments. With global assets in excess of $1.5 trillion, Barclays Global Investors has evolved to be one of the world's premier providers of structured investment solutions in equity, fixed income and currency markets worldwide. Barclays Global Investors' investment process is driven by quantitative research and the application of science and technology in all its strategies. Barclays Global Investors Canada is a majority-owned subsidiary of Barclays Bank PLC.

Goldman Sachs Asset Management
Goldman Sachs Asset Management is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which manages US$415 billion. Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1989 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm. 

CPP Investment Board
The CPP Investment Board is a Crown corporation created by an Act of Parliament in December 1997. It invests in capital markets the funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are currently invested in equities and real estate to balance the cash and bonds owned by the Canada Pension Plan. By increasing the long-term value of funds, the CPP Investment Board will help the Canada Pension Plan to keep its pension promise to Canadians. Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. Its fiscal year is from April 1 to March 31. For more information about the CPP Investment Board, visit www.cppib.ca.

Amounts are in Canadian dollars unless specified.

For further information contact:

John Cappelletti

Manager - Communications and Stakeholder Relations

416-868-0308

jcappelletti@cppib.ca