The Canada Pension Plan Investment Board (CPPIB, CPP Investments) released its third quarter fiscal results for 2020 on Feb. 14, announcing that the pension plan’s assets reached $420.4-billion during the quarter, up from $409.5 billion reported in the previous quarter.
The increase consisted of $14.5-billion in net income after all of the plan’s costs, less $3.6 billion in net Canada Pension Plan (CPP) cash outflows. “CPP Investments routinely receives more CPP contributions than required to pay benefits during the first part of the calendar year, partially offset by benefit payments exceeding contributions in the final months of the year. On an annual basis, contributions to the fund continue to exceed outflows,” the CPPIB said in a statement released Feb. “Financial results and operational performance across CPP Investment’s global active programs remain strong, although the relative value of the Canadian dollar against several foreign currencies affected overall results.”
The fund achieved both five-year and 10-year annualized net nominal returns of 10.4 per cent. For the quarter, the fund returned 3.6 per cent net of all costs.
“Every three years, the Office of the Chief Actuary of Canada conducts an independent review of the sustainability of the base and additional CPP over the next 75 years,” they add. “In the most recent triennial review, the Chief Actuary of Canada reaffirmed that, as of December 31, 2018, both the base and additional CPP continue to be sustainable over the 75-year projection period at the current legislated contribution rates.”
