CANADA - The Canada Post Pension Plan has reported benchmark beating returns of 14.3% on its defined benefit (DB) scheme in 2006, bringing its total assets to C$14.35bn.
Canadian, US and international stocks and bonds made up the plan’s portfolio that outperformed its stated 13.1% benchmark return in its sixth full year of operation.
In addition, Canada Post itself contributed C$288m to the fund, instead of the expected C$270m to fund a solvency deficit that had been created over recent years.
Vice-president of the pension fund and chief investment officer, Douglas Greaves, said: “We are pleased that our 2006 results have enabled the plan to return to a fully funded solvency position.”
Greaves added: “Canada Post continues to hold the financial strength to meet all its obligations.”
Helping the fund were modest increases in long-term interest rates which led to a decrease in the calculated pension.
The Canadian Post Pension plan has 74,000 active and retired members, deferred pensioners and beneficiaries.
Canadian pension funds have hit the news in recent months with buyout deals such as The Public Sector Pension Investment Board (PSPIB) in a bid to buy out Thunder Energy.
Many others, including the Ontario Teachers Pension Plan (OTPP) have lined up to bid for Bell Canada Enterprises (BCE).
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