For the third year in a row, the fund has underperformed its benchmark. Given this consistent underperformance, should we reconsider CPP’s investment mandate, which currently directs CPP Investments to maximize long-term returns while minimizing risk, and instead restrict investments to only the public markets?
Yes, its only been three consecutive years of underperformance, and this would be a complete change in investment philosophy. But one that I believe has more benefit than negatives. The two biggest being complete transparency and considerable savings operationally – likely needing only a small office and a few employees beyond an oversight board that sets out what ETFs the fund would invest in.
I believe this discussion should at least be had. Where it ends up, I’m unsure.
1 Comment
For the third year in a row, the fund has underperformed its benchmark. Given this consistent underperformance, should we reconsider CPP’s investment mandate, which currently directs CPP Investments to maximize long-term returns while minimizing risk, and instead restrict investments to only the public markets?
Yes, its only been three consecutive years of underperformance, and this would be a complete change in investment philosophy. But one that I believe has more benefit than negatives. The two biggest being complete transparency and considerable savings operationally – likely needing only a small office and a few employees beyond an oversight board that sets out what ETFs the fund would invest in.
I believe this discussion should at least be had. Where it ends up, I’m unsure.