The CPP fund grew to $120.5 billion for the quarter ended June 30, 2007, up from $116.6 billion at the end of the previous quarter.
Of the $3.9 billion growth, a 0.7% investment rate of return contributed $805 million in investment earnings, while inflows of CPP contributions not needed to pay current pension benefits added an additional $3.1 billion.
For the four-year period ended June 30, 2007—the end of the CPP Investment Board’s first quarter in fiscal 2008—the CPP fund earned $40.5 billion in investment income, representing a rolling four-year annualized investment rate of return of 12.2%.
While the CPP fund benefited from strong Canadian equity markets this quarter, the strength of the Canadian dollar against most major currencies largely offset gains in foreign equities in the portfolio.
At June 30, 2007, equities represented 64.7% of the fund, consisting of 57.5% in public equities and 7.2% in private equities; bonds represented 24.7% of the portfolio; inflation-sensitive assets represented 9.8%, consisting of 4.6% in real estate, 3.4% in inflation-linked bonds and 1.8% in infrastructure; the final 0.8% of the portfolio was held in money market securities.
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