Four Canadian pension plans rank in the global top 10 for value of their infrastructure holdings. Canada Pension Plan Investment Board (CPP Investments), Caisse de dépôt et placement du Québec (CDPQ), Ontario Municipal Employees Retirement System (OMERS) and Public Sector Pension Investment Board (PSP Investments) are slotted second, fourth, eighth and 10th respectively in recently released 2021 rankings from IPE Real Assets. No other country makes such a conspicuous showing on the list.
The global investment management firm, Allianz, takes the number one spot with USD $35 billion in infrastructure assets, followed by CPP Investments with USD $30 billion (CAD $38.4 billion). Allianz and CPP Investments were likewise among the top 10 global real estate investors in the rankings that IPE, a European-based institutional investment analyst and news service, released earlier this year. Three other investors — Abu Dhabi Investment Authority; Dutch pension plan manager, APG; and multinational insurance company, AXA — also made both lists for 2021.
Canadian investors stand out for a more sizable quotient of infrastructure holdings in their total assets. Notably, OMERS’ USD $17 billion (CAD $21.7 billion) worth of infrastructure equates to 20 per cent of its total asset value, making it the most deeply exposed to the asset class in the top 10. At the other end of the scale, AXA’s USD $16 billion in infrastructure holdings represents just 1.6 per cent of its total assets.
AustralianSuper, ranked seventh on the list, has the next largest stake with USD $18 billion worth of infrastructure representing 10.8 per cent of its total asset value. PSP Investments (8.9 per cent), CDPQ (8.7 per cent) and CPP Investments (8 per cent) follow, while none of the remaining top 10 have more than 4.5 per cent of their total assets in infrastructure.
With USD $25 billion (CAD $32 billion) in infrastructure assets, CDPQ is positioned between the Abu Dhabi Investment Authority (USD $29 billion) and National Pension Service of Korea (USD $23 billion). PSP Investments has USD $14.5 billion (CAD $18.5 billion) in infrastructure assets.