The Canada Pension Plan’s reserve fund grew by $5.7 billion from earnings and contributions in the first quarter to $87 billion, the CPP Investment Board said today.

The fund earned $3 billion from investments during the three month period ended June 30.

That represents a 3.6% rate of return on the fund’s investments publicly traded stocks, private equity, real estate, infrastructure and government bonds.

The CCPIB said the fund grew by a further $2.7 billion from contributions not needed to pay current pensions.

As a result, no investment gains will be required to go to pension payments for 17 years.

Since 1999, when the CPPIB made its first investment, the reserve fund has almost doubled to $87 billion. About 60% of that increase, or almost $25 billion, came from investment gains.

At June 30, 55.2% of the reserve fund’s portfolio was invested in publicly traded stocks, 3.6% in private equity, 33.1% in federal and provincial bonds, 4.1% in cash and money market securities. Real return assets, including real estate and infrastructure investments, made up 4%.

“The strategy we announced earlier this fiscal year to further diversify the CPP reserve fund into real return assets, such as real estate and infrastructure, will continue to be our focal point for the balance of the year,” said David Denison, President and CEO, CPPIB.

“During the first quarter, we made notable progress on this objective with the purchase of a 50 per cent interest in a portfolio of 11 Canadian core office properties from the Oxford Properties Group.”

The CPP Investment Board invests the funds not needed by the government-mandated Canada Pension Plan to pay current pensions. Contributions come from employers and employees.