Rebounding public equities markets contributed “significantly” to a 10.1% return for the CPP Fund in the most recent fiscal year ending March 31.
Notwithstanding the boost from public equities, which represented 32.2% of the CPP Fund portfolio, executives of the CPP Investment Board (CPPIB) said Thursday that they remain committed to private market assets and expect them to outperform over the long-term.
TORONTO — The Canadian Pension Plan Investment Board earned a 1.8% return on investment in the second quarter, as it saw gains in foreign markets and made several significant investments abroad.
CPPIB says it had net assets of $192.8-billion at Sept. 30, up from $188.9-billion at the end of the previous quarter.
The gain included $3.3-billion in net investment income and $600 -illion in net CPP contributions from Canadian employees and employers.
OTTAWA • Finance ministers from across the country will tackle some long-standing issues — from the global economy to pension reform and plans for a national securities regulator — when they meet Monday in the resort setting of Meech Lake.
Chances are, though, many of the issues will be left unresolved, such is the nature of these truncated talks.
The annual gathering — now held at the Quebec resort near Ottawa — is one of the few opportunities for federal finance minister Jim Flaherty to sit down for direct talks with his provincial and territorial counterparts.
"Despite the robust investment returns since 2004, annual growth in unfunded pension liabilities has outstripped these returns," Moody's warns in its latest report on the state of public pension systems. As Bloomberg reports, the 25 biggest systems by assets averaged a 7.45% return from 2004 to 2013, but liabilities tripled over the same period leaving them facing a $2 trillion shortfall as investment returns can’t keep up with ballooning obligations.
MONTREAL • The Caisse de Dépôt et Placement du Québec will increase its investments in real estate, infrastructure and private equity by as much $12-billion over the next two years as it hunts for assets with intrinsic value not necessarily reflected in “hyper short-term focus” of public markets.
The California Public Employees' Retirement System (CalPERS) is an agency that manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families. Its pension plan assumes 7.5% annual growth.
For fiscal year ending 2012 CalPERS Reports Preliminary Performance of 1 Percent.
How Underfunded is CalPERS?
TORONTO – There could be some relief on the horizon for Canadian pensions with solvency positions improving “sharply” in the first quarter of this year due to a strong equity market performance and an uptick in long-term interest rates, according to a report released Tuesday by pension consultant Mercer LLC.
In addition, “plan sponsors have been making contributions to fund the deficits,” said Manuel Monteiro, a partner in Mercer’s financial strategy group.