Canada’s National Pension Fund Sheds Light On Its Investment Strategy

National pension fund of Canada has been investing in long terms now. CEO of the company mentioned that there are certain trends which are aiding in the decision-making procedure. CEO as well as president of Canada Pension Plan Investment Board, Mark Machin said that they have been working on specific areas where long terms trends are visible. Then they would find out the advantageous parts of those themes in order to make investments. The company has also been searching for other companies to invest in the project.

Retail 4.0 or New Retail is something that Machin referred to. Long term investment funds have been observing that theme for quite some time now. He said that they have been constant investors of Alibaba, both pre-IPO and post-IPO. They have also made investments in several funds besides that which have specializations in new retail, for instance – Meituan Dianping. Few analysts are not quite optimistic regarding investment in food delivery app Meituan Dianping, based in Hong Kong. They predict that stock market would go down by 30% for this particular tech farm.

Canada’s pension company makes investments for about 20 million Canadians. Besides investing in sensor companies, they have been searching for autonomous and electric vehicles. Machin told that they have already made huge investments in many companies around the world, one of which is an autonomous taxi company named Zoox which is based in US. Census Bureau has already forecasted that by 2035, US would have a greater number of retirees compared to number of children. Machin informed that this sudden change in demographic shift is one of the basic reasons for their multi-investment plans. Machin’s far-sightedness made him think about Americans’ idea of a tour to Europe, where, they would never miss a river cruise in the countryside. That is why they have also invested in Viking Cruises, a leading company of river cruise in Europe.

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