The CPP Investment Board announced today that for the three months ending December 31, 2005, assets in the CPP reserve fund earned $2.2 billion, producing a rate of return of 2.4% for the quarter.
The CPP reserve fund now stands at $92.5 billion.
During the nine months ending December 31, 2005, assets in the CPP reserve fund earned $9.2 billion producing a fiscal year-to-date rate of return of 10.9%.
At Decl 31, 2005, the CPP reserve fund consisted of 56.6% ($52.4 billion) of publicly traded stocks, 29.7% ($27.4 billion) of government bonds, 8.4% ($7.7 billion) of real return assets, 4.3% ($4 billion) of private equity and 1% ($960 million) in cash and money market securities.
“We are continuing to diversify the portfolio by investing in real estate, private equity and real return bonds,” said David Denison, president and CEO, in a release.
“One of our notable recent transactions is a $660 million investment in two major shopping centres that will complement the Canadian office properties in the real estate portfolio. Overall, our real estate holdings now total $4 billion.”
Based on actuarial projections, CPP contributions are expected to exceed benefits paid until 2022, providing a 16-year period before a portion of the investment income from the CPP reserve fund is needed to help pay CPP benefits.