The CPP Fund ended the fiscal 2007 year at $116.6 billion, an increase of $18.6 billion from $98 billion at the close of the previous year.
Of the $18.6 billion growth, a 12.9% investment rate of return for the year contributed $13.1 billion in investment earnings, while inflows of CPP contributions not needed to pay current pension benefits added an additional $5.5 billion.
“In earning 12.9%, our investment team outperformed its benchmark by adding 2.5% or approximately $2.4 billion in added value to the portfolio above the 10.4% benchmark return,” says David Denison, president and CEO of the CPP Investment Board.
The 12.9% investment rate of return in 2007 compares to the 15.5% return in fiscal 2006, 8.5% in 2005 and 17.6% in 2004.
“Our decision to diversify our investments into a wider range of asset classes including infrastructure and real estate significantly contributed to our value-added results this year,” Denison says. “We also added value through our active programs in public markets and through strong performance within our private equity and real estate holdings.”
At March 31, 2007, equities represented 64.8% of the fund. That amount consisted of 57.8% public equities and 7% private equities. Bonds represented 25%. Inflation-sensitive assets represented 10.1%, 4.9% of which consisted of real estate, 3.3% was inflation-linked bonds and 1.9% was infrastructure. The final 0.1% of the portfolio in money market securities.
To comment on this story email craig.sebastiano@rci.rogers.com.