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.”
Aviva has created a new pension skill for Amazon Alexa that allows customers to find out how much they have saved towards their retirement.
PP has compiled a list of what to watch out for over the coming months.
The proposed cold-calling ban may be ineffective if a collaborative regulatory approach between the UK and the European Union (EU) is not maintained post-Brexit, the Pensions Management Institute (PMI) has warned.
Some 56% of defined contribution (DC) asset managers do not believe they will have transaction cost information in time for pension funds' March year-end statements, according to Lane Clark & Peacock (LCP) research.