February 21, 2002

The CPP Investment Board today confirmed it has retained external expertise to provide investment support services and a portfolio risk management system that otherwise would be internal resources, consistent with its philosophy of being a virtual corporation.

State Street Trust Company Canada will provide custody, performance measurement and investment accounting services. Askari, a State Street business unit, will provide a system that supports internal portfolio risk management.

“The CPP Investment Board is a virtual corporation with a small team of experienced professionals setting our operating and investment strategies and then retaining external organizations to help us to implement those strategies,” explained John MacNaughton, CPP Investment Board president and chief executive officer. “We want to benefit by accessing and leveraging the best services available in the competitive marketplace rather than building a bureaucracy and expensive internal systems to do everything in-house ourselves. That way we can contain costs and focus on strategic investment decisions that can add significant long-term value.”

He added that State Street and Askari have proven track records in serving the needs of large pension funds. “Their services give us the flexibility we need as our assets under management grow from $14 billion today to more than $130 billion within 10 years.” 

The CPP Investment Board is a crown corporation created by an Act of Parliament in December 1997. It invests funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are currently invested only in equities to balance the bond portfolio owned by the Canada Pension Plan. By increasing the long-term value of funds, the CPP Investment Board will help the Plan to keep its pension promise to Canadians. 

Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments.         

For further information contact:

John MacNaughton
 President and Chief Executive Officer 
CPP Investment Board
 416 868-4077    

February 21, 2002

The CPP Investment Board today confirmed it has retained external expertise to provide investment support services and a portfolio risk management system that otherwise would be internal resources, consistent with its philosophy of being a virtual corporation.

State Street Trust Company Canada will provide custody, performance measurement and investment accounting services. Askari, a State Street business unit, will provide a system that supports internal portfolio risk management.

"The CPP Investment Board is a virtual corporation with a small team of experienced professionals setting our operating and investment strategies and then retaining external organizations to help us to implement those strategies," explained John MacNaughton, CPP Investment Board president and chief executive officer. "We want to benefit by accessing and leveraging the best services available in the competitive marketplace rather than building a bureaucracy and expensive internal systems to do everything in-house ourselves. That way we can contain costs and focus on strategic investment decisions that can add significant long-term value."

He added that State Street and Askari have proven track records in serving the needs of large pension funds. "Their services give us the flexibility we need as our assets under management grow from $14 billion today to more than $130 billion within 10 years." 

The CPP Investment Board is a crown corporation created by an Act of Parliament in December 1997. It invests funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are currently invested only in equities to balance the bond portfolio owned by the Canada Pension Plan. By increasing the long-term value of funds, the CPP Investment Board will help the Plan to keep its pension promise to Canadians. 

Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments.         

For further information contact:

John MacNaughton
 President and Chief Executive Officer 
CPP Investment Board
 416 868-4077