Canada Pension fund manager posts 3.1 per cent annual return for 2019-20

Canada Pension fund manager posts 3.1 per cent annual return for 2019-20
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TORONTO — The Canada Pension Plan Investment Board earned a 3.1 per cent return in its latest financial year as the crash in the stock market due to the pandemic took a bite out of results.

“Amid the significant number of concerns many Canadians have today, the sustainability of the fund is one thing they shouldn’t worry about,”  CPPIB chief executive Mark Machin said in a statement.

The independent fund manager for the national pension system said Tuesday that its net assets totalled $409.6 billion at March 31, up from $392.0 billion at the end of fiscal 2019.

Its base account had $407.3 billion in net assets as of March 31, up from $391.6 billion a year earlier, and a new account for extended CPP benefits had $2.3 billion in assets, up from $400 million at the end of March 2019.

CPPIB noted its five-year annualized net real return, which adjusts for inflation, was 6.0 per cent and its 10-year annualized real rate of return was 8.1 per cent for fiscal 2020.

Without adjusting for inflation, the five-year annualized nominal rate of return was 7.7 per cent and the 10-year annualized nominal rate of return was 9.9 per cent.

CPPIB invests excess contributions to the Canada Pension Plan from employers and employees in most parts of Canada except for Quebec, which has its own provincial plan.

This report by The Canadian Press was first published May 26, 2020.

David Paddon, The Canadian Press

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