CANADA - Strong equity performance and asset diversification have been credited with helping the Canada Pension Plan Investment Board grow to C$116.6BN.
The Canada Pension Plan fund (CPP) ended the fiscal 2007 year on March 31 at $116.6bn, an increase of $18.6bn from $98bn at the close of the previous year.
Of the $18.6bn growth, a 12.9 % investment rate of return for the year contributed $13.1bn in investment earnings, while inflows of CPP contributions not needed to pay current pension benefits added an additional $5.5bn.
In terms of its asset mix, at 31 March 2007, 64.8% of the CPP fund was held in equities, 25% was allocated to bonds and inflation-sensitive assets represented 10.1%.
The final 0.1% of the portfolio was held in money market securities.
Commenting on the performance, David Denison, president and chief executive officer of the CPP Investment Board, explained: “Our decision to diversify our investments into a wider range of asset classes including infrastructure and real estate significantly contributed to our value-added results this year. We also added value through our active programs in public markets and through strong performance within our private equity and real estate holdings.”
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.