Review on Canada Pension Plan Investment Board by jesus ruiz
CPP Investment Board has the plan for a dignified retirement.
The dream of every worker in the world, to enjoy a retirement plan that allows you to live with dignity and without financial worries.
Like many countries in the world, Canada established in 1966 a pension plan administered by the Federal government. Then in 1996, the Federal government concluded that this system was not beneficial for the government or for the users of the system, so it decided to create the CPP Investment Board, increasing the contributions to 9.9%.
In 1997, the CPP Investment Board became an independent body responsible for managing Canada's pension funds. In my opinion, a magnificent strategy that should be imitated by our countries, where pension funds are administered by central governments, often turning into corruption hotspots that tarnish the fundamental purpose of a pension fund and damage the economic stability of its users who invested all their work potential to achieve a decent retirement plan.
The CPP Investment Board reports quarterly to its users about its performance, its board of directors oversees the operations of the CPP reserve fund.
CPP Investment Board seeks to maximize the economic return on invested funds for redistribution to its users. To do so, it must maximize investment returns without undue risk of loss, aiming for a long-term rate of return of 4.0%, which sustains CPP.
The CPP Fund invests in fixed income equities and inflation-sensitive assets such as real estate, inflation-linked bonds and infrastructure.
Pros
- Seeks the best possible investment opportunities to maximize fund performance.
- CPP Investments invests globally in a wide range of asset classes.
- CPP Investment Board is an independent body, without any government interference.
Cons
- none at this time
