The Canada Pension Plan Fund grew to $121.3 billion at the end of the July-September quarter, gaining $800 million over the prior quarter.
The increase came from inflows of contributions not needed to pay current pension benefits, while investments posted a loss of $56 million on “the recent volatility in financial markets generally and the negative impact of the strengthening Canadian dollar on foreign investment returns,” the CPP Investment Board said in a news release.
The CPPIB said the CPP fund has grown $4.7 billion for the first six months of the fiscal year.
For the four-year period ended Sept. 30, the fund earned $38.6 billion in investment income, representing a rolling four-year annualized investment rate of return of 11.5%.
At Sept. 30, equities represented 64.6% or $78.4 billion consisting of 56.5% public equities valued at $68.5 billion and 8.1% private equities valued at $9.9 billion.
Fixed income, including bonds and money market securities, made up 24.9% of the portfolio or $30.2 billion.
Canada’s chief actuary estimates that CPP contributions will exceed annual benefits paid through 2019. The fund is expected to grow to about $250 billion by 2016.
The CPP Investment Board invests the funds not needed by the Canada Pension Plan to pay benefits on behalf of 16 million Canadian contributors and beneficiaries.
CPP fund grows to $121.3 billion in Q3
Market volatility, rising loonie deliver a $56 million loss on investments
- By: IE Staff
- November 9, 2007 October 31, 2019
- 13:50