Quote:
Originally Posted by Goriders
If you copied the portfolio investment performance would be a wash. That wasn’t the benefit though. I believe it was the structure of the CPP and its overhead that was the carrot.
Reduced overhead or management expense fee ultimately and that older demographic regions get more benefit than younger.
Like I said above. I can’t remember the fine details. I’ll try and find the arguments and post them here.
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Just to be clear though, you can’t just copy the investments. It’s not like this is a portfolio of public equities where you just say “OK, they have 3.5% in Suncor, 4% Microsoft…” and mirror it. They’ve done all kinds of private equity deals, private credit and infrastructure that you can’t just replicate. You not only cannot get access to a piece of all those deals, but you can’t get the same terms and match that structure. But here’s a massive point that we should be considering; CPPIB is globally respected and they’re recognized for their competency for good reason. Why you would be in a rush to fix what’s not broken is beyond me.
Anyway, just thought I’d make it clear that you can’t replicate the CPP on a provincial level. And interestingly, if the province wanted to try, they’d be spending a pile more money to get a bunch of qualified people to run the private equity/credit and other like investments. They just fired the board of Aimco ostensibly because they weren’t happy with returns (which were completed fine, by the way) and they weren’t happy deemed too expensive (they were not!). I would be stunned to see them layout the kind of money you’d need to build this out to have the qualifications and similar roster to what you see with CPPIB.