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Expenditures at the Canada Pension Plan Investment Board are rising, partly because of the use of outside managers tasked to chase higher yields.
Expenditures at the Canada Pension Plan Investment Board are rising, partly because of the use of outside managers tasked to chase higher yields.
(Getty Images/Comstock Images)

CPPIB costing more, but will it deliver more?

Investment funds usually grow more efficient as they get bigger. The Canada Pension Plan Investment Board, though, is showing a disturbing tendency to head in the opposite direction.

Five years ago, the investment arm of the Canada Pension Plan had total costs of $665-million, according to a new report from the Fraser Institute. In the CPPIB’s most recent fiscal year, overhead had ballooned to $1.4-billion.