CPP posts 0.5% return in latest quarter
Published Friday, August 10, 2012 11:26AM EDT
TORONTO -- The CPP Investment board said Friday that the CPP Fund earned a return of 0.5 per cent in its latest quarter.
The board said the fund held roughly $165.8 billion in net assets at June 30, up from $161.6 billion at March 31, boosted by $800 million in investment income and $3.5 billion in net CPP contributions.
"While all major equity indices were down during the quarter, the positive contributions from our diversified active programs delivered stability overall," CPPPIB president and chief executive Mark Wiseman said in a statement.
"While quarterly results are relevant, CPPIB's focus on the long horizon remains steadfast."
The board invests the money not needed by the Canada Pension Plan to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries.
At June 30, the fund included $84 billion in public and private equity investments, $54.3 billion in fixed income and $27.2 billion in real estate and infrastructure investments.
On Thursday, the board announced an investment in a US$890-million partnership to develop industrial real estate in the United States, its first direct investment in the sector.
Global property developer and manager Goodman Group will invest $490 million a 55 per cent stake in the joint venture, called the Goodman North America Partnership, while CPPIB is investing $400 million for a 45 per cent interest.
The agreement builds on deals between the board and Goodman have already made in Australia, Hong Kong and China.