The CPP Investment Board announced figures of the CPP Fund from Q2 of its 2012 fiscal year. Ending on September 30, 2011, the CPP Fund landed at $152.3 billion, resulting in a net asset decrease $0.9 billion.
The CPP Investment Board explains the decrease of net assets is directly related to an investment loss of $1.2 billion which,fortunately, was offset by CPP contributions of $0.4 billion throughout the quarter.
This announcement isn’t all bad news. In fact, the CPP Fund has actually increased over the last 6 months from $148.2 billion. This increase is from a 0.1 per cent rate of investment return that created $0.1 billion in investment income plus $4.2 billion in contributions.
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“Despite major equity market indices declining approximately 11% on average, the Fund's overall quarterly performance benefitted from our active management programs and private market holdings,” said David Denison, President and CEO, CPP Investment Board. “We remain an active and disciplined investor in these challenging market conditions and are prepared to act when the right opportunitiesarise.”
When analyzing the CPP Fund’s rate of return in the past five to ten years, this news looks even better. The CPP Fund saw an investment rate of return of 3.1 per cent equalling $19.6 billion in investment income. While at the 10 year mark, the Fund grew $51.7 billion with a return rate of 5.9 per cent annually.
The CPP Fund has been making headlines this year with its new investment acquisitions such as the 99 Cents Only Stores and the development project for RBC Headquarters. Although it has seen a small decrease in this quarter, let’s hope it continues on its growing trend.