CPP Investments | Frank Ieraci and Jimmy Connor
•March 6, 2026
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Why It Matters
CPP Investments’ risk‑targeted, active‑management model shapes the retirement security of millions and influences capital flows in Canada’s key sectors, making its strategic choices pivotal for both domestic economic stability and global investment trends.
Key Takeaways
- •CPP Investments manages $780B, 45% public equities, 25% private equity.
- •Active equities team seeks alpha via bottom‑up fundamental research.
- •Asset allocation driven by risk‑targeting, not static geographic weights.
- •Geopolitical uncertainty considered only if it impacts company fundamentals.
- •Canadian assets represent ~12% of portfolio, focusing on value opportunities.
Summary
In a candid interview, Frank Ieraci, global head of active equities at CPP Investments, outlined how the crown‑owned pension fund, with roughly $780 billion in assets, translates contributions from 22 million Canadians into long‑term retirement income. He explained the fund’s portfolio composition—about 45 % public equities, 25 % private equity, 15 % fixed income and the remainder in real assets—and highlighted that roughly 12 % of the total is allocated to Canadian investments across all classes. Ieraci described the active equities team’s mandate: deliver alpha in global public markets through proprietary, bottom‑up fundamental research and a market‑neutral portfolio. Rather than adhering to static geographic benchmarks like the MSCI World, CPP targets a predefined risk envelope, allowing flexible asset‑class and regional allocations that seek the best risk‑adjusted returns over a 3‑5‑year horizon. The CIO sets capital allocations, and the equities team identifies mispricings where they possess differentiated insights. When pressed on geopolitical turbulence—from Ukraine to Middle‑East tensions—Ieraci emphasized that uncertainty is filtered through a company‑specific lens: only risks that materially affect a firm’s fundamentals merit investment. He noted the fund holds no physical gold and currently avoids gold miners due to elevated valuations, while maintaining a strategic, value‑driven presence in Canada’s energy and mining sectors, reflecting a roughly $115 billion domestic exposure. The discussion underscores CPP Investments’ disciplined, risk‑targeted approach, which balances global diversification with a strong domestic bias, aiming to safeguard pensioners’ returns amid macro‑economic volatility. For investors and policymakers, the fund’s methodology signals how one of the world’s largest sovereign pension managers navigates long‑term obligations while adapting to shifting market dynamics.
Original Description
Frank Ieraci is a Senior Managing Director and Global Head of Active Equities at CPP Investments.
CPP Investments is one of the largest pension funds in the world managing over $780 billion in assets and provides a retirement foundation for more than 22 million Canadians.
00:00 Intro
00:31 Overview CPP Investments
02:47 Asset Allocation
07:52 Managing Country Risk
10:06 Canada's Economy
11:40 Resource Sector
12:55 Gold & Gold Equities
15:36 Energy Sector
17:38 AI Investments
20:47 AI Bubble
22:14 EV Investments
25:58 Norges
29:01 ETFs
29:59 Investment Timeline
31:19 Wrap Up
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If you register for this webinar/interview you agree to the following: This webinar is provided for information purposes only. All opinions expressed by the individuals in this webinar/interview are solely the individuals’ opinions and neither reflect the opinions, nor are made on behalf of, Bloor Street Capital Inc. Presenters will not be providing legal or financial advice to any webinar participants or any person watching a recorded version of the webinar. The investing ideas and strategies discussed on this webinar/interview are not recommendations to buy or sell any security and are not intended to provide any investment advise of any kind, but are made available solely for educational and informational purposes. Investments or strategies mentioned in this webinar/interview may not be suitable for your particular investment objectives, financial situation, or needs. You should be aware of the real risk of loss in following any investment strategy discussed in this webinar/interview. All webinar participants or viewers of a recorded version of this webinar should obtain independent legal and financial advice. All webinar participants accept and grant permission to Bloor Street Capital Inc. and its representatives in connection with such recording. The information contained in this webinar/interview is current as of February, 2026 the date of this webinar/interview, unless otherwise indicated, and is provided for information purposes only.
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