The CPP Investment Board is a professional investment management organization based in Toronto. Our purpose is to invest the assets of the Canada Pension Plan in a way that maximizes returns without undue risk of loss. The CPP Fund is $183.3 billion. Canada's Chief Actuary estimates that CPP contributions will exceed annual benefits paid through until 2021. Thereafter a portion of the CPP Fund's investment income would be needed to help pay CPP benefit.
The CPP Investment Board was established by an Act of Parliament in December 1997 and made its first investment in March 1999.
Our team of experienced professionals are committed to providing value-added performance cost effectively.
Our mandate and objectives
Our mandate is set out in our legislation
- To invest in the best interests of CPP contributors and beneficiaries
- To maximize long-term investment returns without undue risk, taking into account the factors that may affect the funding of the Canada Pension Plan and its ability to meet its financial obligations
- To provide cash management services to the Canada Pension Plan so that they can pay benefits.
The CPP Investment Board cannot conduct any business or activity that is inconsistent with these objectives.
We are also committed to telling our story and sharing information with Canadians so that they understand the role we play in helping ensure that the Canada Pension Plan will have sufficient resources to pay benefits in the future.
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In an era when issues of corporate governance continue to make headlines around the world, we are fortunate to be operating within a governance structure, enshrined in legislation, that was carefully designed to support our distinct mission. The CPP Investment Board is a professional investment management organization, operating in the private sector world of financial markets, with strong public sector accountability.
Our governance structure has received international acclaim as a model for national pension plans. We operate independently of the Canada Pension Plan and at arm's length from the federal and provincial governments that are jointly responsible for the CPP.
Oversight of the CPP Investment Board is provided by an independent board of directors. This board, not governments, approves investment policies and makes critical operational decisions, such as the hiring of the president and chief executive officer and the setting of management compensation.
The board hires the president and CEO who, in turn, hires and leads the management team. These investment professionals make portfolio decisions within policies agreed to by the board of directors.
Changing the legislation governing the CPP Investment Board requires the cooperation of the stewards--the federal and provincial finance ministers who oversee the CPP. This process mirrors the constitutional amending formula and requires agreement among the federal government and two-thirds of the provinces representing two-thirds of the population.
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While the CPP Investment Board operates at arm’s length from governments, we are subject to very rigorous accountability requirements. Accountability is deeply ingrained in the CPP Investment Board's legislation, governance and in the policies and practices of the board, officers and employees.
Specific examples of the ways we are by law, accountable to the stewards and the public include:
- Our annual report is tabled in Parliament by the federal minister of finance
- We have annual audits by an independent external audit firm
- There is a review of the CPP and the CPP Investment Board by the federal and provincial finance ministers every three years
- We are subject to a special examination of our records, systems and practices every six years.
- If deemed necessary, the finance minister also has the power to appoint a firm of accountants to conduct an audit at any time
- We hold public meetings in each participating province every two years
- We provide regular and timely information on our website helping interested Canadians monitor the activities and investment performance of the CPP Investment Board.
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Our Commitment to Diversity
At the CPP Investment Board, we have a commitment to diversity and employment equity and believe this contributes to our being a leading employer in the investment management sector.
We seek to attract, hire, and provide challenging and fulfilling career opportunities for highly talented individuals with diverse backgrounds since world class talent, by definition, comes from having a workforce reflective of the diversity of the larger community. By tapping into this broader workforce, we have access to the best minds and are able to continually grow our effectiveness in the diverse domestic and global marketplace in which we operate.
We are committed to having an inclusive environment where the diversity of knowledge, ideas and approaches that employees bring enhances our ability to provide value added performance and enriches everything we do.
At the CPP Investment Board, embracing diversity and employment equity is an important factor in the success of our business strategy.
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At the CPP Investment Board, we are committed to operating with the highest standards of integrity. Our Code of Conduct sets out the standards to which we hold ourselves. As part of the Code of Conduct, we have appointed a Conduct Review Advisor, an individual outside the organization who is available to our employees and directors and to relevant third parties, to provide confidential advice and answer questions about ethical conducts as set out in the Code of Conduct. Please see the complete Code of Conduct policy for more detailed information.
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