Cana­dian pen­sion funds halt In­dia in­vest­ments over virus

Hindustan Times (Jalandhar) - - BUSINESS - Swaraj Singh Dhan­jal swaraj.d@livemint.com

MUM­BAI: The Canada Pen­sion Plan In­vest­ment Board (CPPIB) and Caisse de dépôt et place­ment du Québec (CDPQ) have halted some in­vest­ments in In­dia as Canada’s top two pen­sion funds eval­u­ate the im­pact of Covid-19 on busi­nesses here.

Three peo­ple aware of the devel­op­ments said CPPIB has sus­pended its ₹1,400 crore in­vest­ment in an arm of Mum­bai-based lo­gis­tics firm JM Baxi. Sep­a­rately, CDPQ has put on hold its planned pur­chase of a port­fo­lio of seven toll roads from GIP, its first ac­qui­si­tion of a roads port­fo­lio in In­dia, as the two par­ties could not reach an agree­ment to close the trans­ac­tion within agreed time­lines, the peo­ple said.

Col­lec­tively, these two pen­sion funds have more than $500 bil­lion in as­sets un­der man­age­ment and are among the most bullish in­sti­tu­tional in­vestors in In­dia, hav­ing made nu­mer­ous in­vest­ments in pub­lic and pri­vate mar­kets.

“We do not see these large in­sti­tu­tional in­vestors mak­ing too many fresh com­mit­ments in emerg­ing mar­kets in the next three to six months. Their port­fo­lios have seen mark­downs due to the pan­demic and they have shifted fo­cus on in­vest­ments in their home coun­tries and other de­vel­oped mar­kets; ge­ogra­phies that they are more com­fort­able with,” said man­ag­ing part­ner of a large do­mes­tic pri­vate eq­uity fund, on con­di­tion of anonymity.

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