CPPIB re-assessing post-Covid real asset risk
The impact of the pandemic has led the Canadian pension fund to consider previously under-appreciated risks of some infrastructure and energy assets.
The Covid-19 pandemic has raised the effective risk characteristics of previously stable assets such as property and infrastructure, and is leading the Canada Pension Plan Investment Board (CPPIB) to reassess the risks involved in real asset investment, according to Suyi Kim, Asia head for the fund.
Investment in airports and mid-stream oil and gas facilities has already come under scrutiny by asset owners as the global pandemic impacts demand for travel and energy, but other infrastructure assets are also feeling the strain. Global toll road collections fell by up to 85% in the early stages of the pandemic, according to S&P Ratings.