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Canada Pension Returns 1.8 Percent as Real Estate Boosted

Nov. 8 (Bloomberg) -- Canada Pension Plan Investment Board, the country’s largest pension manager, reported a 1.8 percent return in the fiscal second quarter as it raised its allocation to real estate and infrastructure.

Investment income was C$3.3 billion ($3.15 billion) for the three months ended Sept. 30, the Toronto-based fund manager said today in a statement. Assets rose 2.1 percent to C$192.8 billion from the same period last year.

“Investment returns were consistent with the expected performance of a balanced portfolio,” Chief Executive Officer Mark Wiseman said in the statement. “We continue to diversify the portfolio and during the reporting period we made significant investments in eight different countries.”

The fund, which manages retirement savings for 18 million people in every province except Quebec, made its first real estate investment in South Korea in the quarter, acquiring a 50 percent stake in a Gangnam district office tower owned by a unit of Samsung Electronics Co.

It also purchased luxury retailer Neiman Marcus Group LLC with Ares Management LLC for $6 billion in September.

Canada Pension raised its investments in equities to 50.6 percent of its portfolio, or C$97.5 billion, from 49.7 percent in the year-ago period. Allocation to fixed income declined to 32.3 percent from 33.5 percent. Real estate and infrastructure investment climbed to 17.1 percent from 16.8 percent.

To contact the reporter on this story: Katia Dmitrieva in Toronto at edmitrieva1@bloomberg.net

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net

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