CPPIB gets ‘significant uplift’ from global equity markets in latest quarter
Posted August 11, 2017 6:11 am.
Last Updated August 11, 2017 6:29 am.
This article is more than 5 years old.
TORONTO – The Canada Pension Plan Investment Board, the country’s biggest public pension plan, says it got “a significant uplift” from global equity markets during the April to June quarter, resulting in a 1.8 per cent rate of return after costs.
The CPPIB says that put the pension fund’s long-term rates of return well above the minimums required to be sustainable for decades.
Publicly traded equities made up 38.9 per cent of the fund’s total assets, or $126.9 billion, as of June 30.
The fund also invests in private equity, government bonds, credit investments, real estate, infrastructure and other assets.
The Toronto-based fund manager ended the quarter with $326.5 billion in net assets, up $9.8 billion from March 31 when CPPIB’s 2017 financial year ended.
The CPPIB says its 10-year rate of return after accounting for expenses and inflation was 5.2 per cent.
The Chief Actuary of Canada estimates the fund can be sustainable for 75 years with an average rate of return of 3.9 per cent.
