June 29, 1999

The Canada Pension Plan Investment Board today released its first Annual Report for the period ended March 31, 1999. The Investment Board acts on behalf of all Canada Pension Plan contributors and beneficiaries, investing funds received from the CPP.

Some of the highlights of the initial period of operations include:

•    A Board of Directors with significant financial and professional experience was appointed in October 1998 to govern the Investment Board. The Chair of the Board of Directors, Gail Cook-Bennett discharged the functions of the Chief Executive Officer during the start up period, and will continue to do so until September 1999.

•    The Board of Directors established governance procedures including a code of conduct for directors and officers, developed investment policies and procedures, appointed external fund managers and an external auditor and began a program of stakeholder communications.

•    The Investment Board received its first transfer of funds from the CPP in March 1999 and by mid-June had in excess of $500 million invested in capital markets. Total assets are expected to grow to $88 billion by 2008.

•    Investments were made in domestic and foreign stock index funds. Canadian equity investments substantially replicate the TSE 300 Composite Index; the foreign equity component is invested in Standard & Poor’s 500 and EAFE (Europe, Australia, New Zealand and Far East) Index funds.

•    In June 1999, the Board of Directors announced that John A. MacNaughton would become the first President and Chief Executive Officer of the Canada Pension Plan Investment Board, effective September 7, 1999. Mr. MacNaughton has had a distinguished 31 year career in the investment industry. He was formerly President of Nesbitt Burns Inc., one of Canada’s largest investment dealers.

The Annual Report is available in hard copy form in both English and French: in addition to being tabled in Parliament, it is being distributed to federal and provincial parliamentarians, financial and professional organizations and major public libraries. It is also available on the Investment Board Website www.cppib.ca, or on request from the offices of the Canada Pension Plan Investment Board.

The role of the Canada Pension Plan Investment Board is to increase the long term value of Canada Pension Plan assets through prudent participation in capital markets. The Investment Board, managed independently of the Canada Pension Plan, receives funds not required by the CPP to pay current pensions. The federal government administers the Canada Pension Plan, collects contributions made by Canadians, and pays pensions. In conjunction with the provincial governments, the federal government sets contribution rates and determines benefit levels. 

For further information contact:

John A. MacNaughton

President and Chief Executive Officer

(416) 868-4077        

June 29, 1999

The Canada Pension Plan Investment Board today released its first Annual Report for the period ended March 31, 1999. The Investment Board acts on behalf of all Canada Pension Plan contributors and beneficiaries, investing funds received from the CPP.

Some of the highlights of the initial period of operations include:

•    A Board of Directors with significant financial and professional experience was appointed in October 1998 to govern the Investment Board. The Chair of the Board of Directors, Gail Cook-Bennett discharged the functions of the Chief Executive Officer during the start up period, and will continue to do so until September 1999.

•    The Board of Directors established governance procedures including a code of conduct for directors and officers, developed investment policies and procedures, appointed external fund managers and an external auditor and began a program of stakeholder communications.

•    The Investment Board received its first transfer of funds from the CPP in March 1999 and by mid-June had in excess of $500 million invested in capital markets. Total assets are expected to grow to $88 billion by 2008.

•    Investments were made in domestic and foreign stock index funds. Canadian equity investments substantially replicate the TSE 300 Composite Index; the foreign equity component is invested in Standard & Poor's 500 and EAFE (Europe, Australia, New Zealand and Far East) Index funds.

•    In June 1999, the Board of Directors announced that John A. MacNaughton would become the first President and Chief Executive Officer of the Canada Pension Plan Investment Board, effective September 7, 1999. Mr. MacNaughton has had a distinguished 31 year career in the investment industry. He was formerly President of Nesbitt Burns Inc., one of Canada's largest investment dealers.

The Annual Report is available in hard copy form in both English and French: in addition to being tabled in Parliament, it is being distributed to federal and provincial parliamentarians, financial and professional organizations and major public libraries. It is also available on the Investment Board Website www.cppib.ca, or on request from the offices of the Canada Pension Plan Investment Board.

The role of the Canada Pension Plan Investment Board is to increase the long term value of Canada Pension Plan assets through prudent participation in capital markets. The Investment Board, managed independently of the Canada Pension Plan, receives funds not required by the CPP to pay current pensions. The federal government administers the Canada Pension Plan, collects contributions made by Canadians, and pays pensions. In conjunction with the provincial governments, the federal government sets contribution rates and determines benefit levels. 

For further information contact:

John A. MacNaughton

President and Chief Executive Officer

(416) 868-4077