CPP Fund Totals $300.5 Billion at Second Quarter Fiscal 2017
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 11/10/16 -- All figures in Canadian dollars unless otherwise noted.
The CPP Fund ended its second quarter of fiscal 2017 on September 30, 2016 with net assets of $300.5 billion, compared with $287.3 billion at the end of the previous quarter. The $13.2 billion increase in assets for the quarter consisted of $13.6 billion in net investment income after all CPPIB costs, less $0.4 billion in Canada Pension Plan (CPP) cash outflows. The CPP Fund routinely receives more CPP contributions than required to pay benefits during the first part of the calendar year, partially offset by payments exceeding contributions in the final months. The portfolio delivered a gross investment return of 4.83% for the quarter, or 4.75% net of all costs.
For the six-month fiscal year-to-date period, the CPP Fund increased by $21.6 billion from $278.9 billion at March 31, 2016. This included $17.7 billion in net investment income after all CPPIB costs and $3.9 billion in net CPP contributions. The portfolio delivered a gross investment return of 6.4% for this period, or 6.3% net of all costs.
"All investment departments contributed to the Fund''s overall performance this quarter with solid gains across public and private markets," said Mark Machin, President & Chief Executive Officer, Canada Pension Plan Investment Board (CPPIB). "Longer-term returns demonstrate the prudence of our disciplined investment strategy to help sustain the Fund over multiple generations."
Long-Term Sustainability
The CPP''s multi-generational funding and liabilities give rise to an exceptionally long investment horizon. To meet long-term investment objectives, CPPIB continues to build a portfolio and to invest 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 September 2016, the Chief Actuary of Canada reaffirmed that, as at December 31, 2015, the CPP remains sustainable at the current contribution rate of 9.9% throughout the forward-looking 75-year period covered by his report. The Chief Actuary''s projections are based on the assumption that the Fund''s prospective real rate of return, which takes into account the impact of inflation, will average 3.9% over 75 years. CPPIB''s 10-year annualized net nominal rate of return of 7.3%, or 5.6% on a net 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 2021, after which a small portion of the investment income from CPPIB will be needed to help pay pensions.
"Over the period of his latest report, the Chief Actuary confirmed that the Fund''s performance is well ahead of projections as investment income was 248% higher than anticipated. The Fund''s investment returns have made a favourable impact and contributed to the lowering of the minimum contribution rate required to help keep the CPP sustainable over the long term," added Mr. Machin.
Q2 Investment Highlights:
Public Market Investments
Investment Partnerships
Private Investments
Real Assets
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 September 30, 2016, the CPP Fund totalled $300.5 billion. For more information about CPPIB, please visit or follow us on or .
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Datum: 10.11.2016 - 09:30 Uhr
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