TORONTO, ONTARIO — (Marketwire) — 08/10/12 — The CPP Fund ended the first quarter of its 2013 fiscal year on June 30, 2012 with net assets of $165.8 billion, compared to $161.6 billion at the end of the previous quarter on March 31, 2012. The $4.2 billion increase in net assets after operating expenses resulted from $0.8 billion in investment income and $3.5 billion in net CPP contributions. The portfolio returned 0.5% for this quarter.
“Our performance results for the fiscal first quarter reflect the Fund-s resilience against continuing uncertainty, poorly performing equity markets and other global economic headwinds,” said Mark Wiseman, President and CEO, CPP Investment Board (CPPIB). “Our investment portfolio, broadly diversified across asset classes and geography, contributed to the Fund-s performance despite a turbulent market environment. While all major equity indices were down during the quarter, the positive contributions from our diversified active programs delivered stability overall. While quarterly results are relevant, CPPIB-s focus on the long horizon remains steadfast.”
During the quarter, CPPIB completed several significant transactions. Highlights include:
CPPIB also announced several significant investments following quarter end:
“We continue to assess opportunities today with a long horizon view, especially where we can realize value by leveraging our unique set of comparative advantages,” said Mr. Wiseman. “In doing so, we seek attractive global investment opportunities that emerge in varied market conditions. We are patient and will act, or not, on investment opportunities according to our ability to create value in the long run.”
Long-term sustainability
In the latest triennial review released in November 2010, the Chief Actuary of Canada reaffirmed that 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 an annualized 4.0% real rate of return. The 10-year annualized nominal rate of return of the Fund is 6.3%.
The Chief Actuary-s report also indicates that CPP contributions are expected to exceed annual benefits paid until 2021, providing a 9-year period before a portion of the investment income from the CPPIB will be needed to help pay pensions.
Asset Mix
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, 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 June 30, 2012, the CPP Fund totaled $165.8 billion. For more information about the CPP Investment Board, please visit .
Contacts:
CPP Investment Board
Linda Sims
Director, Media Relations
(416) 868-8695