The risk-laden approach to investing Canadians’ pensions: an analysis of the Canada Pension Plan Investment Board and its market-based investment strategy

Author: 
Peer reviewed: 
No, item is not peer reviewed.
Date created: 
2009
Keywords: 
Pension investment - Canada
Investment
Public policy
Neoliberalism - Canada
Canada --- Politics and government
Abstract: 

The Canada Pension Plan Investment Board (CPPIB) has introduced substantial risk into the investment of Canadians’ public pensions by moving assets from secure government bonds to market-based equities, real estate and hedge funds. This risk, because of the recent economic recession, has resulted in substantial losses to the Board’s portfolio assets of over $17.5 billion in this current fiscal year alone. Under the guise of its internally developed “Policy on Responsible Investing,” the CPPIB invests the assets without concern for corporate social responsibility, promising to engage with rather than divest from irresponsible corporations. This adherence to a market-based investment philosophy has resulted in Canadians’ pension assets being risked and lost. The CPPIB therefore eschews its fiduciary responsibility to protect Canadians’ pensions for the foreseeable future. Failing the implementation of better risk management strategies including the reallocation of assets, new contributions may be required to fund future pension liabilities.

Language: 
English
Document type: 
Thesis
Rights: 
Copyright remains with the author. The author granted permission for the file to be printed, but not for the text to be copied and pasted.
Senior supervisor: 
M
Department: 
Dept. of Political Science - Simon Fraser University
Thesis type: 
Research Project (M.A.)
Statistics: