CPP Fund Totals $287.3 Billion at First Quarter Fiscal 2017
Fund Achieves New High
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 08/11/16 -- All figures in Canadian dollars unless otherwise noted.
The CPP Fund ended its first quarter of fiscal 2017 on June 30, 2016 with net assets of $287.3 billion, compared with $278.9 billion at the end of fiscal 2016. The $8.4 billion increase in assets for the quarter consisted of $4.1 billion in net investment income after all CPPIB costs and $4.3 billion in net CPP contributions. The portfolio delivered a gross investment return of 1.53% for the quarter, or 1.45% net of all costs.
"Global investors experienced ongoing volatility this quarter, generating mixed results across major equity markets. Amid these challenges, the Fund''s increase was primarily driven by positive fixed income performance, public equity gains in Canada and the U.S., and the performance of our private asset portfolio," said Mark Machin, President & Chief Executive Officer, CPP Investment Board (CPPIB). "In the quarter, we acted on a number of investment opportunities across a range of asset classes and markets that further diversified the portfolio to prudently create long-term value for the Fund."
Long-Term Sustainability
The Canada Pension Plan''s multi-generational funding and liabilities give rise to an exceptionally long investment horizon. To meet long-term investment objectives, CPPIB is building a portfolio and investing in assets designed to generate and maximize long-term, risk-adjusted returns. Accordingly, long-term investment returns are a more appropriate measure of CPPIB''s performance than returns in any given quarter or single fiscal year.
In the most recent triennial review released in December 2013, the Chief Actuary of Canada reaffirmed that, as at December 31, 2012, the CPP remains sustainable at the current contribution rate of 9.9% throughout the 75-year period of his report. The Chief Actuary''s projections are based on the assumption that the Fund will attain a prospective 4.0% real rate of return, which takes into account the impact of inflation. CPPIB''s 10-year annualized net nominal rate of return of 7.3%, or 5.5% on a real rate of return basis, was comfortably above the Chief Actuary''s assumption over this same period. These figures are reported net of all CPPIB costs to be consistent with the Chief Actuary''s approach.
The Chief Actuary''s report also indicates that CPP contributions are expected to exceed annual benefit payments until 2023, after which a portion of the investment income from CPPIB will be needed to help pay pensions.
Q1 Investment Highlights:
Private Investments
Real Estate Investments
Investment highlights following the quarter end include:
Asset Dispositions:
Corporate Highlights:
About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 19 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City and Sao Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm''s length from governments. At June 30, 2016, the CPP Fund totalled $287.3 billion. For more information about CPPIB, please visit or follow us on or .
Contacts:
Dan Madge
Senior Manager, Media Relations
+1 416 868 8629
Mei Mavin
Director, Corporate Communications
+44 20 3205 3515
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Datum: 11.08.2016 - 05:00 Uhr
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News-ID 1452039
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