Canada Pension Plan, Ottawa, saw a 3.3% nominal investment return in the quarter ended Dec. 31, helping increase assets to C$238.8 billion (US$191.9 billion).
Assets were up 1.9% for the latest three-month period, CPP’s fiscal third quarter, with C$7.3 billion in net investment income offsetting C$2.9 billion in cash outflows, the CPP Investment Board, Toronto, which manages the plan’s assets, reported Friday.
The return was above the 2.7% return of Canadian defined benefit plans in the RBC Investor & Treasury Services universe.
For the nine months ended Dec. 31, CPP’s nominal investment return was 8.4%, and assets rose 9%. The CPPIB reported C$18.3 billion in net investment income for the nine months, with C$1.4 billion in net contributions.
Linda Sims, CPPIB spokeswoman, said while benefits are paid out throughout the year, contributions from workers are generally made earlier in the year and capped at C$52,000.
The board does not provide quarterly returns for each asset class.
The pension fund had an annualized nominal rate of return of 10.5% for five years and 7.3% for 10 years, both as of Dec. 31.
Its asset allocation as of Dec. 31 was 30.9% public equity, 34% fixed income, 18.6% private equity, 11% real estate and 5.5% infrastructure. As of Sept. 30, its allocation was 33% public equity, 32.5% fixed income, 18.3% private equity, 10.8% real estate and 5.4% infrastructure.
