CANADA - The Canada Pension Plan Investment Board today announced the pension plan's assets grew CAN$3.9bn (e2.4bn) in the three months ending December 31, 2004, producing a rate of return of 5.2%.
Releasing its fiscal 2005 third quarter results, the Board said the CPP reserve fund grew to CAN$77.2bn with equities and real return assets - representing about 56.7% of the fund - earning CAN$3bn or a return of 7.4%. The assets included 52.4% publicly traded stocks, 3.2% private equities, 1% real estate and 0.1% infrastructure.
As at December 31, 2004, the CAN$77.2bn reserve fund consisted of CAN$43.8bn in publicly traded equities, private equities real estate and infrastructure and CAN$33.4bn in nominal fixed-income securities.
For the quarter, nominal fixed income, consisting of federal and provincial government bonds and cash and money market securities, earned CAN$890m and a 2.6% return.
During the nine months ending December 31, assets available to the CPP reserve fund earned a fiscal year-to-date rate of return of 6.2%.
“The chief actuary of Canada said in his recent report the CPP, as currently constituted, is sound for the next 75 years,” said David Denison, president and CEO of the CPP Investment Board.
“Canada stands out among G8 countries for having a stable national pension plan, which is the result of CPP reforms made in 1997.”
The fund grew from CAN$75.2bn in the previous quarter. Based on actuarial projections, CPP contributions are expected to exceed benefits until 2022, providing a 17-year period before a portion of the investment income is needed to help pay CPP benefits.
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