CPP Fund gains $8.9 billion in latest quarter

CPP Fund valued at $136.8 billion as of September 30, 2010

Toronto (November 10, 2010) – The CPP Fund ended the second quarter of fiscal 2011 on September 30, 2010 at $138.6 billion compared to $129.7 billion at the end of the first quarter on June 30, 2010.

The $8.9 billion increase in assets after operating expenses this quarter was the result of investment income of $8.4 billion representing an investment return of 6.6%, as well as an inflow of contributions which totaled $0.5 billion. This quarter’s results were primarily attributable to the strong performance in the global equity markets which was reflected in CPPIB’s listed equity holdings.

For the six month fiscal year-to-date period, the CPP Fund has increased by $11 billion from $127.6 billion at March 31, 2010. This increase in assets after operating expenses is comprised of $6.7 billion in investment income representing a 5.2% rate of return combined with contributions of $4.3 billion.

“All major equity market indices realized gains this quarter, in particular U.S. markets, which posted their best September results in 70 years,” said David Denison, President and CEO, CPP Investment Board.

For the five-year period ended September 30, 2010, the CPP Fund generated an annualized investment rate of return of 3.4% or $18.3 billion of investment income. For the 10-year period ended September 30, 2010, the Fund generated $44 billion of investment income reflecting an annualized rate of return of 5.5%.

Long-term sustainability

The CPP Fund is sustainable throughout the 75-year period of the Chief Actuary of Canada’s report. The report indicates that CPP contributions are expected to exceed annual benefits paid until 2021, providing an 11-year period before a portion of the investment income from the CPPIB will be needed to help pay pensions.

NUPGE

The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE


 

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