CANADA - The Canada Pension Plan Investment Board (CPPIB) said it gained over C$11bn (US$10.1bn) in the quarter ending June 30, but assets remain lower than they were last year, the CPPIB said in its quarterly release.
Assets totalled C$116.6bn up from C$105.5bn the previous quarter, according to the report. The increase consists of investment gains of C$7.6bn and $3.5bn in contributions. One year ago, assets totalled C$122.7bn.
President and chief executive of the CPPIB David Denison said: "We are pleased with the C$11.1 billion increase in the fund and the positive 7.1% return for the first quarter. At the same time, the negative returns of our past fiscal year and the positive results of this first quarter both need to be viewed within the context of our long-term strategy."
Since inception in April 1999, the CPPIB raked in an annualized rate of return of 4.9%.
The pension fund manager allocates 45.7% to public equities, 11.8% to private equity, 29.2% to fixed income, and 13.3% to inflation sensitive investment including real estate, inflation linked bonds and infrastructure.
The asset mix has not changed drastically over the past year; though public equities have been reduced while all other asset classes increased slightly. Public equities were reduced by 5.3 percentage points, while private equity, fixed income and inflation sensitive assets increased by 0.8 percentage points, 3.4 percentage points and 1.1 percentage points, respectively.
Denison said he does not anticipate a change in the strategic weightings of the portfolio.
He said: "With no need to use current income to pay benefits for another 11 years and with approximately C$28 billion of additional cash inflows anticipated between now and 2019, we will maintain the strategic asset weightings for the portfolio."
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