CPP Fund posts 11.6% return
Canada Pension Plan Investment Board achieved an 11.6 per cent rate of return in fiscal 2018, keeping it on track to provide long-term financial support for the country’s largest retirement fund, according to figures released Thursday.
The CPP Fund increased its assets by $39.4 billion over the financial year ended March 31, slightly more than the $37.8 billion increase in fiscal 2017 and much better than the $14.3 billion increase in 2016.
At the end of March, the CPP Fund had net assets of $356.1 billion, up from $316.7 billion at the end of fiscal 2017 and $278.9 billion at the end of fiscal 2016, which included nine months in calendar 2015.
Investment gains have offset shrinking employer and employee contributions, which fell to $2.7 billion in fiscal 2018 from $4.3 billion in fiscal 2017 and $5.2 billion in fiscal 2016.
Canada’s chief actuary estimates the CPP Fund can meet its obligations with an average return of 3.9 per cent over 75 years.
The investment portfolio’s 10year real rate of return, which is comparable to the chief actuary’s benchmark estimate, was 6.2 per cent in fiscal 2018 while the five-year rate of return was 10.4 per cent.
CPPIB chief executive officer Mark Machin declined to predict Thursday how investment returns will turn out this year.