Why we issue debt
To ensure sound diversification, in addition to equities and bonds, the CPP Investments fund includes many assets which are regarded as relatively “safe” – such as real estate or infrastructure. However, because of their lower individual risks, the inclusion of substantial amounts of these assets into the investment portfolio makes it hard to reach the higher overall levels of risk which we have targeted. We therefore issue a modest amount of debt to maintain our targeted level of risk, while still enjoying the benefits of portfolio diversification.
Investors should know
CPP Investments is accountable to Parliament and to federal and provincial stewards. While we operate at arm’s length from government and we have an investment-only mandate, we are subject to rigorous accountability requirements, which are deeply ingrained in the CPPIB Act as well as in the policies and practices that govern our Board, our officers and our employees. Debt issued by CPP Investments is not guaranteed by governments.
About our debt issuance program
Our Debt issuance offers high quality diversification to the AAA investor’s portfolio at a very attractive spread. Benchmark offerings along the entire maturity spectrum will provide the broadest range of investment options to our global investor base.
- CPP Investments will look to issue liquid benchmarks and private placements in calendar 2023
- CPP Investments may issue in US dollars, CAD, Euros, GBP, and AUD
- CPP Investments may issue Green Bonds as part of the funding plan
- Additionally, CPP Investments has the ability to issue shorter dated, non-benchmark notes, in response to investor demand.
Term Debt issued by CPP Investments can be found in the following indices:
- EUR: Bloomberg Indices, CITI (FTSE), ICE BofA, Morningstar, NASDAQ Global Market
- USD: Bloomberg Indices, ICE BofA, Morningstar
- GBP: Bloomberg Indices, iBoxx, ICE BofA, Morningstar, NASDAQ Global Market
- CAD: Bloomberg Indices, CITI (FTSE), ICE BofA, Morningstar, NASDAQ Global Market
- AUD: ICE BofA
- Green Bonds: Bloomberg / MSCI, ICE BofA
Relevant legislation and regulations
- Canada Pension Plan Regulations
- Canada Pension Plan Investment Board Act
- Canada Pension Plan Investment Board Regulations