The Canada Pension Plan (CPP) fund ended the third quarter of its 2014 fiscal year on Dec. 31, 2013, with net assets of $201.5 billion, compared with $192.8 billion at the end of the previous quarter.
The $8.7-billion increase in assets for the quarter comprised $11.1 billion in net investment income, after operating costs, less $2.4 billion of cash outflows. The portfolio delivered a gross investment return of 5.9% for the quarter.
For the nine-month fiscal year-to-date period, the CPP fund increased by $18.2 billion from $183.3 billion at March 31, 2013. This includes $16.3 billion in net investment income after operating costs and $1.9 billion in net CPP contributions. The portfolio delivered a gross investment return of 8.9% for this period.
“The exceptional performance of public equities contributed to the fund’s third quarter results,” says Mark Wiseman, president and CEO of the Canada Pension Plan Investment Board. “Major equity indices attained all-time highs, and all of our investment programs delivered significant gains, propelling the fund past $200 billion for the first time.”
In the recent triennial review released in December 2013, the chief actuary of Canada reaffirmed that the CPP remains sustainable at the current contribution rate of 9.9% throughout the 75-year period of his report.
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