CPP Fund Totals $238.8 Billion at Third Quarter Fiscal 2015
All figures in Canadian dollars unless otherwise noted.
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 02/13/15 -- The CPP Fund ended its third quarter of fiscal 2015 on December 31, 2014, with net assets of $238.8 billion, compared to $234.4 billion at the end of the previous quarter. The $4.4 billion increase in assets for the quarter consisted of $7.3 billion in net investment income after all CPPIB costs, less $2.9 billion in cash outflows. The CPP Fund routinely receives more CPP contributions than are required to pay benefits during the first part of the calendar year and then remits a portion of those funds for benefit payments in the latter part of the year. The portfolio delivered a gross investment return of 3.3% for the quarter.
For the nine month fiscal year-to-date period, the CPP Fund increased by $19.7 billion from $219.1 billion at March 31, 2014. This included $18.3 billion in net investment income after all CPPIB costs and $1.4 billion in net CPP contributions. The portfolio delivered a gross investment return of 8.4% during this period.
"The continuing climb in value across most international public equity markets contributed to the Fund's return this quarter, as did our private investments and fixed income assets," said Mark Wiseman, President & Chief Executive Officer, CPP Investment Board (CPPIB). "Our globally diversified investments continue to benefit the Fund, providing total portfolio resiliency against significant fluctuations within specific sectors or geographies, such as the rapid decline in oil prices recently."
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 returns. Long-term investment returns are a more appropriate measure of CPPIB's performance than returns in any given quarter or fiscal year.
Long-Term Sustainability
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 nominal rate of return of 7.3%, or 5.5% on a real rate of return basis, is 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 benefits paid until the end of 2022, after which a portion of the investment income from CPPIB will be needed to help pay pensions.
Asset Mix
Q3 Investment Highlights:
Private Investments
Real Estate Investments
Investment highlights following the quarter end include:
Asset Dispositions:
Corporate Highlights:
Five and 10-Year Returns(1)
(for the period ending December 31, 2014)
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 18 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, 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, 2014, the CPP Fund totalled $238.8 billion. For more information about CPPIB, please visit .
Contacts:
Linda Sims
Director, Media Relations
+1 416 868 8695
Mei Mavin
Director, Corporate Communications
+44 20 3205 3515
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Datum: 13.02.2015 - 14:00 Uhr
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