CPPIB allocates $1 billion for Indian public market investments
Not all foreign funds are balking at Indian equities -spooked by rich valuations, slow corporate earnings or at the growing prospects of interest rate hikes in the US. Canada Pension Plan Investment Board (CPPIB), the most active Canadian investor in India, has just reaffirmed its commitment, by allocating a dedicated $1-billion corpus, exclusively for public market investments, said multiple sources aware.
As one of the 10 largest retirement funds in the world, the initial thesis of CPPIB has been to back real estate and infrastructure, two sectors that needed foreign investments the most. But now the idea is to make the engagement far more deeper. Its first investment was in the toll road portfolio of L&T IDPL.
This will not be a separate fund structure but drawdowns from the overall pool of capital that CPPIB manages on behalf of Canadian pensioners. The internal approvals have just come in, added the sources mentioned above.
Read more @ The Economic Times
