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.
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?
In spite of a 12.8% annual return, with an 8% return assumption, the Illinois Teachers Retirement System (TRS) fell another $3.5 billion in the hole. TRS pension underfunding grew to $55.73 billion as of June 30, 2013.
Via email, the Illinois Policy Institute explains the growing liability.
First, TRS only has $0.40 in the bank for every dollar it should have today to make necessary pension payouts in the future. That means the high investment returns in 2013 were earned on less than half of the assets that TRS should have
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.
MONTREAL – Pension fund manager Caisse de dépôt et placement du Québec is creating a new $250-million development fund to invest in startup natural resource companies.
The fund will make investments of between $5-million and $20-million in Quebec resource companies that are in the development stage, the Caisse said Thursday. Financing is flexible and can take the form of a debenture, convertible debenture or equity, the pension fund said.