CPP Fund Totals $268.6 Billion at First Quarter Fiscal 2016
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 08/14/15 -- All figures in Canadian dollars unless otherwise noted.
The CPP Fund ended its first quarter of fiscal 2016 on June 30, 2015, with net assets of $268.6 billion, compared to $264.6 billion at the end of fiscal 2015. The $4.0 billion increase in assets for the quarter consisted of a net investment loss of $0.2 billion after all CPPIB costs and $4.2 billion in net CPP contributions. The portfolio's gross investment return was flat for the quarter (0.01%), or -0.1% on a net basis.
"The CPP Fund held steady through the first quarter of fiscal 2016 despite broad declines in major global equity and fixed income markets. Amid these difficult market conditions, our private investment programs generated meaningful income exemplifying the benefits of building a resilient, broadly diversified portfolio," said Mark Wiseman, President & Chief Executive Officer, CPP Investment Board (CPPIB). "This was a busy quarter with more than 25 investments across multiple programs and international markets. We continue to assess and seize opportunities that fit our disciplined approach to produce long-term risk-adjusted returns."
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 risk-adjusted returns. Long-term investment returns are a more appropriate measure of CPPIB's performance than returns in any given quarter or single 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 7.6%, or 5.8% on a 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 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
(1) Excludes non-investment assets (such as premises and equipment) and non-investment liabilities, totalling $0.1 billion for Q1 F2016. As a result, total assets will differ from the net assets figure of $268.6 billion.
Q1 Investment Highlights:
Private Investments
Public Market Investments
Real Estate Investments
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 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, Luxembourg, 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 June 30, 2015, the CPP Fund totalled $268.6 billion. For more information about CPPIB, please visit .
Contacts:
Canada Pension Plan Investment Board
Mei Mavin
Director, Global Corporate Communications
+44 20 3205 3515
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Datum: 14.08.2015 - 11:00 Uhr
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News-ID 413756
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