The Canada Pension Plan is reporting a $10.3 billion annual gain from investments, compared with a year-earlier $1.1 billion loss., as global equity markets rebounded strongly.
The rate of return for fiscal 2004 was 17.6%, versus a loss of 1.5% in the previous fiscal year.
“Fiscal 2004 and 2003 results were each extremes that highlight the volatility one expects on a long investment journey in pursuit of investment returns that will sustain and strengthen the Canada Pension Plan,” John MacNaughton, CEO of the CPP Investment Board, said in a news release.
The total CPP portfolio, which includes investment earnings and contributions to the CPP — after benefits paid — grew to $70.5 billion in the year ending March 31, showing an increase of $14.9 billion from the previous year.
“After several years of decline, global equity markets rebounded strongly in fiscal 2004,” the board said. “As a result, income from equities and real estate far surpassed fixed income returns.”
Stocks and real estate produced income of $7.2 billion for a 31.7% rate of return, compared with a loss of $4.1 billion, or a negative 21.1% rate of return, in fiscal 2003.