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Investment income boosts Canada Pension Plan assets in 2011

10 Feb 2012

The Canada Pension Plan ended the third quarter of 2011 with assets of $152.8bn, up $520m from $152.3bn at the end of the second quarter on 30 September 2011.

The increase in net assets after operating expenses resulted from investment income of $3.2bn, or a 2.1 per cent rate of return. Seasonal cash outflows from the fund were $2.6bn during the quarter, it said.

For the nine months ended 31 December 2011, the fund increased by $4.6bn from $148.2bn as of 31 March 2011. For the ten-year period, the fund generated $52.7bn of investment income reflecting an annualised investment rate of return of 5.7 per cent.

“The CPP Fund’s return this quarter was primarily attributable to the gains realized in the public equity and bond markets, and the Fund’s overall year-to-date performance also benefitted from our active management programmes,” said David Denison, president and CEO, CPP Investment Board.

“This balance across our investment programmes contributes to greater resilience in the Fund’s returns even in turbulent market conditions.”

Notable investments included the completion of the acquisition of Kinetic Concepts, a medical technology company, by a consortium comprised of CPPIB, Apax Partners and PSP Investments for $6.2bn.

Denison said, “This represents the second largest global private equity transaction in calendar 2011 and marks the third consecutive year that CPPIB has participated in the largest or second largest private equity transaction globally.”

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