TORONTO – CPP Investments has a cautious outlook for the months ahead despite strong returns through the July-to-September period, with net assets up $22.3 billion or five per cent from the previous quarter.
The independent investment manager for the Canada Pension Plan said Monday it had $456.7 billion in assets as of Sept. 30, up from $434.4 billion at the end of June.
Most of the growth came from $21.6 billion in net income from investments. In addition, there was $700 million in net contributions from the Canada Pension Plan.
The Toronto-based fund attributed growth during the second quarter to a continued recovery of public equity markets in July and August, which affected both its publicly traded and private equity holdings. Those gains were partly offset by a retreat of public markets in September amid concerns about further COVID-19 lockdowns.
Chief executive Mark Machin said all the fund manager’s investment departments generated positive returns during the quarter but the organization remains cautious given the uncertain economic fallout of COVID-19.
“Our investment professionals continue to pursue opportunities that will bring value to the Fund over the long term,” Machin said Monday in a statement.
On a longer-term basis, after adjusting for inflation, the second quarter of fiscal 2021 had a 10-year annualized net real return of 8.8 per cent and a five-year annualized net real return of 8.0 per cent.
Canada’s chief actuary has estimated CPP Investments needs an average real rate of return of 3.95 per cent over 75 years to meet its financial obligations.
Compared with Sept. 30, 2019, the fund’s total value increased by $47.2 billion or 10.3 per cent from $409.5 billion in last year’s second quarter.
Publicly traded equities owned by CPP Investments were worth a total of $143.6 billion, representing nearly one-third of the total portfolio. Compared with CPP Investments’ second-quarter report last year, that was up about $13 billion or nine per cent.
Private equities, which aren’t traded on stock exchanges, were worth $112.2 billion, or about one-quarter of the total portfolio as of Sept. 30. That was up $13.3 billion or nearly 12 per cent year-over year.
Real assets, including real estate, infrastructure, energy and resources, and power and renewable energy, were worth a total of $98.3 billion, up $800 million or eight per cent.
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Government bonds were worth $97.4 million (up $6.7 million or nearly seven per cent) from last year’s fiscal second quarter.
This report by The Canadian Press was first published Nov. 16, 2020.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
