Canada Pension Plan earns 1.9% in quarter
The Canadian Press
Posted: Nov 9, 2012 10:57 AM ET
Last Updated: Nov 9, 2012 10:55 AM ET
The Canada Pension Plan Fund had net assets of $170.1 billion as of Sept. 30. (CPPIB)
The CPP Investment Board says its investment portfolio produced a return of 1.9 per cent in the second quarter.
The board, which invests funds on behalf of the Canada Pension Plan, reported Friday that the CPP Fund had net assets of $170.1 billion as of Sept. 30, up from $165.8 billion at the end of the previous quarter.
The $4.3-billion increase in net assets after operating expenses resulted from $3.1 billion in investment income and $1.3 billion in net CPP contributions.
"The positive returns this quarter reflected gains across most global equity markets as well as income generated by our active investment strategies," said CPPIB president and CEO Mark Wiseman.
"The strong pace of investment activities during the past six months continues to demonstrate our ability to leverage our exceptionally long investment horizon and internal capabilities to complete sizable and complex investments while maintaining a disciplined, patient approach."
10-year return rate 6.7%
Meanwhile, the CPPIB noted in reporting the quarterly results that the latest triennial review released this month by the chief actuary of Canada reaffirmed that the CPP remains sustainable at the current contribution rate of 9.9 per cent throughout the 75-year period of the report.
The chief actuary's projections are based on the assumption that the fund will attain an annualized four per cent real rate of return. The 10-year annualized nominal rate of return of the fund is 6.7 per cent, the board said.
The chief actuary's 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 CPPIB will be needed to help pay pensions.
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.
It's diversified portfolio includes public and private equities, real estate, infrastructure and fixed income instruments.
Share Tools
Top News Headlines
- Oklahoma tornado recovery work begins after deadly storm
- Rescue teams searched through the night looking for survivors after a deadly tornado that flattened homes and two schools in an Oklahoma City suburb, and officials have now reduced the death toll from 51 to 24. WATCH LIVE: U.S. President Obama is scheduled to speak at 10 a.m. ET about the massive tornado. more »
- Harper 'upset' by conduct in Senate expense scandal
- Prime Minister Stephen Harper gave a televised address to his Conservative caucus this morning to comment on the Senate expenses controversy that prompted the weekend resignation of his chief of staff, Nigel Wright. more »
- Horwath will support Ontario Liberal budget
- Ontario voters may get some indication today from NDP Leader Andrea Horwath on whether the province is headed for a spring election. more »
- Keith Boag: Have you heard about the murderous abortion doctor?
- The gruesome trial and murder conviction of Philadelphia abortion provider Dr. Kermit Gosnell is unlikely to change American abortion law, Keith Boag writes. But it has U.S. journalists questioning their priorities and how they cover such a sensitive issue. more »
- Fearful Oklahoma families search for children
- The parents and guardians stood in the muddy grass outside a suburban Oklahoma City church, listening intently as someone with a bullhorn called out the names of children who were being dropped off — survivors of Monday's deadly tornado. more »
Must Watch
Latest Business Headlines
- Microsoft's Xbox revamp: Is the sun setting on game consoles?
- With the rise of mobile and social games, the revival of PC gaming and a general proliferation of options for both developers and players, some are wondering whether game consoles matter anymore, writes Peter Nowak. more »
- Canadian on EI shut out amid foreign worker influx
- A jobless Canadian IT professional who is collecting employment insurance is upset because he now suspects several recent jobs he applied for went to temporary foreign workers. more »
- What kind of home can $380,588 buy?
- The national average price for a home rose to $380,588 in April 2013, an increase of 1.3 per cent from the previous year. But what can a house hunter expect to find for that price? more »
- Russell 2000 small-company index surpasses 1,000
- The Russell 2000, an index of small-company stocks, rose above 1,000 for the first time. The index is outpacing the Dow Jones industrial average and the Standard & Poor's 500 index this year. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 12733.93 | 120.88 |
| DOW | 15359.39 | 24.11 |
| NASDAQ | 3492.51 | -3.92 |
| SP 500 | 1666.55 | 0.26 |
| TSX-VENTURE | 934.25 | -0.43 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
- Oklahoma tornado recovery work begins after deadly storm
- 51 dead after tornado levels Oklahoma suburbs
- Edmonton driver, 62, charged in boy's patio death
- Will alleged Rob Ford video overshadow Toronto casino debate?
- Unknown remains found on Dellen Millard's farm
- Netflix and the rise of binge TV watching
- Harper to address Tory caucus amid Senate scandal
- Keith Boag: Have you heard about the murderous abortion doctor?
- Microsoft's Xbox revamp: Is the sun setting on game consoles?
