CPP Fund Totals $298.1 Billion at Third Quarter Fiscal 2017
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 02/10/17 -- All figures in Canadian dollars unless otherwise noted.
The CPP Fund ended its third quarter of fiscal 2017 on December 31, 2016 with net assets of $298.1 billion, compared with $300.5 billion at the end of the previous quarter. The $2.4 billion decrease in assets for the quarter consisted of $1.7 billion in net investment income after all CPPIB costs, less $4.1 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 Fund continues to benefit from net contributions on an annual basis after all outflows. The portfolio delivered a gross investment return of 0.64% for the quarter, or 0.56% net of all costs.
For the nine-month fiscal year-to-date period, the CPP Fund increased by $19.2 billion from $278.9 billion at March 31, 2016. This included $19.4 billion in net investment income after all CPPIB costs, less $0.2 billion in net CPP cash outflows. The portfolio delivered a gross investment return of 7.1% for this period, or 6.9% net of all costs.
"The Fund''s modest return this quarter reflects the largest quarterly decline in North American fixed income markets since CPPIB''s inception coupled with the Canadian dollar strengthening against most major currencies except for the U.S. dollar, partially offsetting gains in our public equity portfolio," said Mark Machin, President & Chief Executive Officer, Canada Pension Plan Investment Board (CPPIB). "Income was generated across investment programs and our teams continue to invest in assets in line with our long-term objectives to deliver solid results."
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 6.5%, or 4.8% on a net real rate of return basis, was comfortably above the Chief Actuary''s assumption over this same 10-year 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.
Asset Mix
(1 ) Excludes non-investment assets (such as premises and equipment) and non-investment liabilities, totalling $(0.1) billion for Q3 F2017. As a result, total assets will differ from the net assets figure of $298.1 billion.
Q3 Investment Highlights:
Private Investments
Real Assets
Investment highlights following the quarter end include:
Asset Dispositions:
Corporate Highlights:
Five and 10-Year Returns (1, 2)
(for the quarter ending December 31, 2016)
(1) After all CPPIB costs.
(2) Rates of return are calculated on a time-weighted basis.
( 3) Dollar figures are cumulative.
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 December 31, 2016, the CPP Fund totalled $298.1 billion. For more information about CPPIB, please visit or follow us on or .
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Datum: 10.02.2017 - 07:00 Uhr
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