The CPP Fund generated the highest one-year return in its most recent fiscal year since it was created in 1999 — and racked up the largest chunk of annual investment income.
The investment portfolio of Canada’s biggest pension fund generated a net investment return of 18.3 per cent, according to results for fiscal 2015 released Thursday.
Assets climbed by $45.5 billion to $264.6 billion. The growth included $40.6 billion in net investment income after all costs of the Canada Pension Plan Investment Board. The balance came from CPP contributions.
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?
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
In the worst possible form of kicking the can down the road, at the worst possible time as well (given the lofty overvalued condition of the stock market), To Pay New York Pension Fund, Cities Borrow From It First.