2019 has seen big shifts and new opportunities for CPP Investments, none more significant than the additional CPP funds that began flowing into the Fund in January. The differences in the funding of additional CPP and base CPP, with the former’s sustainability having a greater sensitivity to investment returns, means they require distinct investment-risk targets. I am pleased to report that the two-pool investment structure we designed maintains fairness between the two accounts, transparency, and has enabled both accounts to benefit from our unique advantages. You can read more about this milestone in our recent Annual Report.
As the current bull market enters its 11th year, we remain committed to the implementation of our strategy and a measured global expansion that involves diversifying our investments, network and resources. While the future is far from certain, we are confident that all our previous hard work will deliver considerable value under the multitude of scenarios.
I am pleased to report that, in June 2019, we opened our ninth global workspace, in San Francisco, California. A presence in one of the leading technology and innovation ecosystems, globally, gives us better access to investment opportunities and deepens our relationships and networks.
I was reminded of that growing network at our second-ever alumni reception on April 15th. The reception – held at the new Globe & Mail Centre in Toronto – welcomed over 200 guests seeking to renew old connections and make a few new ones. Our speaker of the night was Tim Wu, a Columbia law professor best known for coining the term “net neutrality.” He spoke about some of the fundamental shifts happening in our economy.
We’re also closely monitoring the ongoing macroeconomic shifts and geopolitical tensions that could impact our investments today and in the future. We continue to invest amid global uncertainty; and our ability to do so effectively requires agility in our thinking and in our investment approach.
This fall, we’ll release our 12th annual Sustainable Investing Report, focused on climate change, water, human rights, executive compensation and board effectiveness. This report provides an opportunity to share what our organization has achieved, and our plans to address future challenges, with the goal of helping to ensure the long-term sustainability of the Fund.
Looking ahead, I am grateful for the ongoing commitment and support of our network, and am optimistic about what’s to come.
Best wishes, Mark
~ Mark Machin, President and CEO