Resiliency, innovation and building a sustainable business are key characteristics that will help companies emerge stronger from the pandemic and chart a new growth path, said Suyi Kim, senior managing director and head, Asia Pacific, CPP Investments, which manages investments for the Canada Pension Plan Investment Board (CPPIB).
Kim said as India and the world slowly emerge from the pandemic, these three key themes will drive the pension fund’s investment strategy.
India continues to remain a critical market for the Canadian pension fund, which manages over C$475.7 billion in assets, and the fund will continue to bet on long-term growth opportunities in the Indian economy, she said.
“India is critical to our investment strategy. We have been investing in India for over a decade now and as part of our long-term commitment in India, we opened our second office in Asia in Mumbai in 2015. Our portfolio in India includes investments in real estate, infra, renewables, public markets, private equity, funds and credit with an AUM of C$12 billion, which is relatively small, and only about 2.5% of our total funds. However, we have an ambitious plan to significantly grow our portfolio in India across all asset classes.”
“Though the pandemic has impacted the economy in the near term, India’s macro fundamentals remain strong. We will continue to stay focused on these long-term trends and look for companies that are resilient, innovative and sustainable in the long run,” she said.
The pandemic has taught entrepreneurs the importance of building resilient business models that can stand the test of time, she said. “Over this pandemic, the biggest challenge that companies have to face is slow economic activity and uncertainty on the path of recovery, how it is going to pan out this year and the next, and what will be the long-term impact,” she added.
This article was first published on livemint.com.
