This presentation looks at CPPIB including making investment into new infrastructure projects in Canada.

1. Canada Pension Plan – How
to grow its investment –
May 2017
BY: PAUL YOUNG, CPA, CGA
DATE: MAY 20, 2017

2. Agenda
 What is Canada Pension Plan
 How does CPP work
 Who is CPPIB
 What are CPPIB Returns
 Government Policies

3. Average life expectancy

4. What is CPP?
 The Liberal government of Prime Minister Lester B. Pearson in 1965 first
established the Canadian Pension Plan
 In March 2013, average monthly benefits for new retirement pension (taken at
age 65) was $596.66 and the maximum amount was $1,012.50. Monthly benefits
are adjusted every year based on the Consumer Price Index. CPP benefit
payments are taxable as ordinary income.

5. CPPIB
 The CPP Investment Board, formally the Canada Pension Plan Investment
Board, is a Canadian Crown corporation established in 1997 to oversee and invest
the funds contributed to and held by the Canada Pension Plan (CPP). As of
December 31, 2015, the CPP Investment Board manages over C$282 billion in
investment assets for the Canada Pension Plan on behalf of eighteen million
Canadians.

6. CPPIB

7. CPPIB Headlines

8. Market Returns
 BMO Economics – May 19, 2017

9. CPPIB and Infrastructure
 Source - http://www.citynews.ca/2017/05/18/canadian-infrastructure-deals-scarce-but-would-be-welcome-
cppib-chief-executive/
Officials from the country’s largest pension fund said Thursday they’d welcome the opportunity
to invest in Canadian infrastructure but there’s been a limited supply of suitable assets available
to purchase.
“If the opportunities were there, we’d love to look at them. We’d love to invest in them. It’s just a
scarcity of opportunities,” said Mark Machin, CEO of the Canada Pension Plan Investment
Board.
He said the CPPIB is constantly on the hunt for purchases around the world but finds itself
frequently outbid by rivals when infrastructure comes on the market.
“That’s terrific for governments. It’s terrific for sellers. But when you’re competing to buy, it’s
really razor-sharp pricing,” Machin said. City News – May 18, 2017

10. TTC
Source – TTC -
- Pension funds would
want return of 11% or
higher
- Many transit systems
received operation
grant.
- TTC would need to
provide 1,080 in
income to get a
return of 11% or
higher

11. Metrolinx / Go Transit
 Metrolinx
• Go Transit lost money
in 2016
• Go Transit would need
to make $250M in net
profit in order to get
11% return on capital
assets
• 25% of the funding for
Go Transit comes from
the province

12. CPP Unfunded

13. CPPIB

14. Government Policies
 Liberal Party plan to move OAS from 67 to 65
 Liberal party plan to push CPPIB to invest in Canadian Infrastructure projects

15. CPP / Liberals Party of Canada
 https://www.youtube.com/watch?v=2yNLHmSx17o

16. Liberals and Blackrock
 https://www.youtube.com/watch?v=ug-bQBtsnvE