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%.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.