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The Canada Pension Plan Investment Board says the main fund it manages for the national retirement system increased its assets by $39.4 billion over the financial year ended March 31, achieving a net annual return of 11.6%.

CPPIB’s chief executive officer Mark Machin says the main driver of growth over the first nine months of fiscal 2018 came from soaring public equity markets.

The CPP Fund received $36.7 billion in net income from investments, after all CPPIB costs, and $2.7 billion in net contributions from employers and employees covered by the Canada Pension Plan.

Read: CPP hikes to cost four times more than Feds project: CFIB

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.

The investment portfolio’s 10-year real rate of return, which is used as a benchmark against assumptions made by Canada’s chief actuary, was 6.2% while the five-year rate of return was 10.4%.

The chief actuary estimates the CPP Fund can meet its obligations with an average return of 3.9% over 75 years.

Also read:

Canadian pension returns up slightly

Increasing number of Canadian institutions using ETFs

Originally published on Advisor.ca
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