The Canadian Pension Plan Investment Board ended the second quarter of fiscal 2012 with assets slightly down on the quarter, ending 30 September 2011 at $152.3bn compared to $153.2bn at the end of the first quarter ending 30 June 2011.
Private equities amounted to 16.6 per cent of the overall assets, or $25.3bn.
The $0.9bn decrease in net assets resulted from an investment loss of $1.2bn, or a negative 0.8 per cent rate of return, partially offset by inflows of CPP contributions of $0.4bn during the quarter.
For the six month fiscal year-to-date period, the CPP Fund increased by $4.1bn from $148.2bn at 31 March 2011. This increase in net assets is comprised of $100m in investment income, representing a 0.1 per cent rate of return, and contributions of $4.2bn.
“Despite major equity market indices declining approximately 11 per cent 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 opportunities arise.”
For the five-year period, the fund generated an annualised investment rate of return of 3.1 per cent or $19.6bn of investment income. For the ten-year period, the fund generated $51.7bn of investment income reflecting an annualised rate of return of 5.9 per cent.
During the quarter, notable investments included a$244m equity investment in a joint venture with Global Logistic Properties to develop and hold modern logistics facilities in Japan.
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