CANADA - The Canada Pension Plan's (CPP) first quarter return rate tumbled by 11.2% compared to the last fiscal year, according to new figures.
Overall, the CPP announced its assets had grown by C$3.9bn (US$3.7bn) at the end of the first quarter, mainly due to high levels of contribution inflows not needed to pay current pension benefits.
A statement from the fund stated: “While the CPP Fund benefited from strong Canadian equity markets this quarter, the strength of the Canadian dollar against most major currencies largely offset gains in foreign equities in the portfolio.”
The fund’s portfolio remained mostly unchanged from the year before which produced a 12.9% or $13.1bn return.
CPP have maintained its investment are long term concerns not to be overly analysed on a quarter by quarter basis.
In terms of its asset mix, as at 30 June 2007, 64.7% of the fund was held in equities and 24.7% was allocated to bonds and inflation-sensitive assets represented 9.8%. The remaining 0.8% was held in money market securities.
Over the four years ending 30 June 2007, the CPP earned $40.5bn (US$38.4bn) in investment income creating a rolling annualised return rate of 12.2%.
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
Savers are being warned by the Insolvency Service to guard their pension pots from investment scammers and negligent trustees as it winds up 24 companies.
Respondents say they should only be required in certain situations as the system is not broken.