World News: 13:00 GMT Friday 10th August 2018. [L’Office d’investissement du RPC via Globe Newswire via SPi World News]
TORONTO, Aug. 10, 2018 (GLOBE NEWSWIRE) -- The CPP Fund ended its first quarter of fiscal 2019 on June 30, 2018, with net assets of $366.6 billion, compared to $356.1 billion at the end of fiscal 2018. The $10.5 billion increase in assets for the quarter consisted of $6.6 billion in net income after all CPPIB costs and $3.9 billion in net Canada Pension Plan (CPP) contributions.
The Investment Portfolio achieved 10-year and five-year annualized net nominal returns of 8.0% and 12.3%, respectively, and 1.8% for the quarter. These returns are net of all CPPIB costs.
“While performance was solid across our investment departments, our private assets did particularly well. Global equity markets maintained positive performance this quarter, contributing to Fund growth,” says Mark Machin, President & Chief Executive Officer, Canada Pension Plan Investment Board (CPPIB). “While we focus on strong average returns stretching well beyond five and 10 years, solid performance today cushions the Fund for an inevitable future market downturn. We are confident that our investment strategy will continue to serve the Fund through multiple economic cycles.”
CPPIB continues to build a portfolio designed to achieve a maximum rate of return at an appropriate risk level, having regard to our exceptionally long investment horizon. Accordingly, long-term results are a more appropriate measure of CPPIB’s investment performance than returns in any given quarter or single fiscal year.
Every three years, the Office of the Chief Actuary of Canada conducts an independent review of the sustainability of the CPP over the next 75 years. 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, is expected to average 3.9% over the 75-year period.
The Chief Actuary’s report confirmed that the Fund’s performance was ahead of projections for the 2013-2015 period as investment income was 248%, or $70 billion, higher than anticipated.
Globe Newswire: 13:00 GMT Friday 10th August 2018
SPi News is published by Sector Publishing Intelligence Ltd.
© Sector Publishing Intelligence Ltd 2018. [Admin Only]
Sector Publishing Intelligence Ltd.
Agriculture House, Acland Road, DORCHESTER, Dorset DT1 1EF United Kingdom
Registered in England and Wales number 0751938.