The CPP(Canada Pension Plan)fund grew by $7.5 billion to $110.8 billion during the quarter ended December 31, 2006.
“The strong performance of Canadian and foreign equity markets was the largest factor behind the positive investment returns this quarter for the CPP fund,” says the CPP Investment Board’s president and CEO, David Denison. “We are pleased that further diversification of the CPP fund into a broader range of asset classes and geographies has also contributed to these strong returns.”
On Tuesday, the CPPIB announced it would co-launch a private equity fund in Turkey with the Ontario Teachers’ Pension Plan. And last October, it was part of a consortium that purchased AWG PLC, of the U.K.’s largest water companies.
For the quarter, the CPP fund experienced an investment rate of return of 8.7%, or an increase of $8.9 billion, while the fund paid out $1.4 billion for CPP benefits as it typically does in the latter part of the calendar year. The result is a $7.5 billion overall increase in the CPP fund since the end of September.
During the nine months ending December 31, 2006, the CPP fund experienced a year-to-date investment rate of return of 10.1%, or $10.3 billion, while the fund added $2.5 billion from CPP contributions not needed to pay current pension benefits.
The result is a $12.8 billion overall increase in the CPP fund from the start of April of last year to the end of December.
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