Canada Pension Plan Returned 3.4 Percent in Second Quarter

The Canada Pension Plan Investment Board (CPPIB) has crunched its numbers for the second quarter, which ended Sep. 30.

CPPIB investments returned 3.4 percent over the period; that’s an improvement over the 1.6 percent return experienced by plan investments in the first quarter.

The CPPIB returned 16.5 percent in fiscal year 2013-14.

More on the return figures from the Globe and Mail:

CPPIB said its assets grew by $7.6-billion in the fiscal second quarter ended Sept. 30, with assets increasing to $234.4-billion from $226.8-billion in the previous quarter.

Growth consisted of $7.5-billion in net investment income and $0.1-billion from new contributions.

The modest return is in stark contrast to much higher returns posted last year, as growth in global markets slows.

“During the quarter, our investment portfolio reflected mixed performance from the global public equity markets, balanced by solid returns from our fixed income assets and positive contributions from our private investments,” CPPIB president and chief executive officer Mark Wiseman said.

“We continue to realize the benefits of a globally diversified, resilient portfolio that is designed to deliver superior returns over the long term.”

Canada’s largest pension fund manager said on Thursday that the Chief Actuary of Canada has projected that the fund will attain a 4-per-cent rate of return after inflation on a long-term basis.

CPPIB has a five-year rate of return of 8.2 per cent and a 10-year return rate of 5.6 per cent, above the actuary’s assumptions.

The CPPIB’s allocates 33 percent of its assets to public equities, 32.5 percent to fixed income, 10.8 percent to real estate, 5.4 percent to infrastructure and 18.3 percent to private equity.