CPP Fund Ends Fiscal Third Quarter at $152.8 Billion
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 02/10/12 -- The CPP Fund ended the third quarter of its fiscal year on December 31, 2011 at $152.8 billion, up $520 million from $152.3 billion at the end of the second quarter on September 30, 2011.
The $0.5 billion increase in net assets after operating expenses resulted from investment income of $3.2 billion, or a 2.1% rate of return. Seasonal cash outflows from the Fund were $2.6 billion during the quarter. The CPP Fund routinely receives more CPP contributions than are required to pay benefits during the first part of the calendar year and then returns a portion of those funds for benefit payments in the latter part of the year.
For the nine months ended December 31, 2011, the CPP Fund increased by $4.6 billion from $148.2 billion at March 31, 2011. This increase in net assets after operating expenses is comprised of $3.3 billion in investment income, representing a 2.2% rate of return, and contributions of $1.6 billion. For the 10-year period ended December 31, 2011, the Fund generated $52.7 billion of investment income reflecting an annualized investment rate of return of 5.7%.
"The CPP Fund's return this quarter was primarily attributable to the gains realized in the public equity and bond markets, and the Fund's overall year-to-date performance also benefitted from our active management programs," said David Denison, President and CEO, CPP Investment Board. "This balance across our investment programs contributes to greater resilience in the Fund's returns even in turbulent market conditions.
"One of the highlights of our investment activities during the quarter was the completion of the acquisition of Kinetic Concepts, Inc., a leading global medical technology company, by a consortium comprised of CPPIB, Apax Partners and PSP Investments for a total transaction value of approximately $6.2 billion. This represents the second largest global private equity transaction in calendar 2011 and marks the third consecutive year that CPPIB has participated in the largest or second largest private equity transaction globally."
Long-term sustainability
The Chief Actuary of Canada conducts a financial review of the Canada Pension Plan every three years. In the latest triennial review completed in November 2010, the Chief Actuary reaffirmed that the CPP remains sustainable at the current contribution rate of 9.9% throughout the 75-year period of his report. The report also indicates that CPP contributions are expected to exceed annual benefits paid until 2021, providing a nine-year period before a portion of the investment income from the CPP Fund will be needed to help pay pensions.
Investment Portfolio Update
We announced a number of investments during the quarter, including:
We also announced several significant investments following quarter end:
Note: All figures in Canadian dollars unless otherwise noted.
About CPP Investment Board
The CPP Investment Board is a professional investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, the CPP Investment Board invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At December 31, 2011, the CPP Fund totaled $152.8 billion. For more information about the CPP Investment Board, please visit .
Contacts:
CPP Investment Board
Linda Sims
Director, Media Relations
(416) 868-8695
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Datum: 10.02.2012 - 14:00 Uhr
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