CPP Fund Totals $326.5 Billion at First Quarter Fiscal 2018
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 08/11/17 -- All figures in Canadian dollars unless otherwise noted.
The CPP Fund ended its first quarter of fiscal 2018 on June 30, 2017, with net assets of $326.5 billion, compared to $316.7 billion at the end of fiscal 2017. The $9.8 billion increase in assets for the quarter consisted of $5.7 billion in net income after all CPPIB costs and $4.1 billion in net Canada Pension Plan (CPP) contributions. The portfolio achieved 10-year and five-year net nominal returns of 6.9% and 12.1%, respectively, and a gross investment return of 1.9%, or 1.8% net of all costs, for the quarter.
"Our strategy has delivered strong and stable returns over the five- and 10-year periods. We continue to position the Fund for future growth while seeking stability through diversification," said Mark Machin, President & CEO, Canada Pension Plan Investment Board (CPPIB). "Each major CPPIB investment program contributed to first quarter results. Global equity markets produced a significant uplift and gains from fixed income improved. Meanwhile, the strengthening Canadian dollar against most major currencies applied downward pressure, a trend that accelerated in the first half of the current quarter."
Long-Term Sustainability
CPPIB''s 10-year annualized net nominal rate of return of 6.9%, or 5.2% on a net real rate of return basis, was above the Chief Actuary''s assumption of expected performance over this same period. The real rate of return is reported net of all CPPIB costs to be consistent with the Chief Actuary''s approach.
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 the actuarial 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.
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. In addition, the report confirmed that the Fund''s performance was well ahead of projections for the 2013-2015 period as investment income was 248%, or $70 billion, higher than anticipated.
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 designed to generate and maximize long-term returns at an appropriate risk level. Accordingly, long-term investment returns are a more appropriate measure of CPPIB''s performance than returns in any given quarter or single fiscal year.
Five and 10-Year Returns (1,2) (for the quarter ending June 30, 2017)
Asset Mix
Q1 Investment Highlights:
Public Market Investments
Investment Partnerships
Private Investments
Real Assets
Asset Dispositions:
Investment highlights following the quarter end include:
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 20 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, Sao Paulo and Sydney, CPPIB is governed and managed independently of the Canada Pension Plan and at arm''s length from governments. At June 30, 2017, the CPP Fund totalled $326.5 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, Global Corporate Communications
+1 646 564 4920
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Datum: 11.08.2017 - 06:00 Uhr
Sprache: Deutsch
News-ID 1517235
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