May 15, 2000
The Canada Pension Plan Investment Board received $443 million in new cash from the Canada Pension Plan in the fourth quarter of fiscal 2000. These funds were invested as soon as they were received. As a result we had $2.4 billion in invested assets at March 31, 2000 compared with $1.7 billion at December 31, 1999.
The share of the Canada Pension Plan assets managed by the CPP Investment Board is presently small, but will grow steadily in the coming years. Today the Canada Pension Plan has total assets of approximately $38.5 billion. In addition to the $2.4 billion under management at the CPP Investment Board, $30.3 billion (at cost) is invested in provincial and federal government bonds with the remainder held in a short-term operating reserve. Both the bond portfolio and the operating reserve are administered by the Federal Government. In determining our asset mix, we have taken into consideration the amounts that are already invested in government bonds and as a result, 100% of new investments by the CPP Investment Board are allocated to equities.
Approximately 80 percent of the Canada Pension Plan assets under our management are invested in the shares of major Canadian companies and the remainder in foreign equities. The Canadian investments substantially replicate the Toronto Stock Exchange 300 Composite Index. The foreign investments substantially replicate the Standard and Poor’s 500 Index of leading U.S. companies and the EAFE (Europe, Australasia and Far East) Index of about 1,000 overseas companies. These indexes are a cost-efficient way to invest in domestic and foreign markets and to diversify investment risk among different global economies.
During the quarter, the Board of Directors approved the business plan presented by management for the fiscal year ending March 31, 2001.
A key element of the plan is the recruitment of four Vice Presidents, one each to be responsible for Research and Risk Management, Public Market Investments, Private Market Investments and Communications and Stakeholder Relations. The recruitment process commenced in April.
The current fiscal year end for the CPP Investment Board is March 31, 2000. An annual report is being prepared and will be available for public distribution on June 29, 2000. More information regarding the strategic initiatives of the CPP Investment Board, along with annual financial statements and investment performance results will be available in the report.
As required by legislation, the CPP Investment Board must hold a public meeting once every two years in each participating province to discuss the most recent annual report and to give interested persons an opportunity to comment on it. The intention is to commence this process in the autumn of 2000.
The CPP Investment Board was created by an Act of Parliament in December 1997. It receives funds not needed by the Canada Pension Plan to pay current pensions and invests them in capital markets. By increasing the long-term value of these funds, the CPP Investment Board will help the Canada Pension Plan to keep its pension promise to Canadians. The CPP Investment Board is a corporation governed and managed separately from the Canada Pension Plan.
The Canada Pension Plan itself is the joint responsibility of the federal and provincial governments which set contribution rates and benefit levels. The plan is administered by the federal government, which collects contributions and pays pensions. For further information contact:
Canada Pension Plan Investment Board
181 University Avenue
Suite 1800
Toronto, Ontario M5H 3M7
Telephone : 416-868-4075
Facsimile : 416-868-4083
Website : www.cppib.ca
May 15, 2000
The Canada Pension Plan Investment Board received $443 million in new cash from the Canada Pension Plan in the fourth quarter of fiscal 2000. These funds were invested as soon as they were received. As a result we had $2.4 billion in invested assets at March 31, 2000 compared with $1.7 billion at December 31, 1999.
The share of the Canada Pension Plan assets managed by the CPP Investment Board is presently small, but will grow steadily in the coming years. Today the Canada Pension Plan has total assets of approximately $38.5 billion. In addition to the $2.4 billion under management at the CPP Investment Board, $30.3 billion (at cost) is invested in provincial and federal government bonds with the remainder held in a short-term operating reserve. Both the bond portfolio and the operating reserve are administered by the Federal Government. In determining our asset mix, we have taken into consideration the amounts that are already invested in government bonds and as a result, 100% of new investments by the CPP Investment Board are allocated to equities.
Approximately 80 percent of the Canada Pension Plan assets under our management are invested in the shares of major Canadian companies and the remainder in foreign equities. The Canadian investments substantially replicate the Toronto Stock Exchange 300 Composite Index. The foreign investments substantially replicate the Standard and Poor's 500 Index of leading U.S. companies and the EAFE (Europe, Australasia and Far East) Index of about 1,000 overseas companies. These indexes are a cost-efficient way to invest in domestic and foreign markets and to diversify investment risk among different global economies.
During the quarter, the Board of Directors approved the business plan presented by management for the fiscal year ending March 31, 2001.
A key element of the plan is the recruitment of four Vice Presidents, one each to be responsible for Research and Risk Management, Public Market Investments, Private Market Investments and Communications and Stakeholder Relations. The recruitment process commenced in April.
The current fiscal year end for the CPP Investment Board is March 31, 2000. An annual report is being prepared and will be available for public distribution on June 29, 2000. More information regarding the strategic initiatives of the CPP Investment Board, along with annual financial statements and investment performance results will be available in the report.
As required by legislation, the CPP Investment Board must hold a public meeting once every two years in each participating province to discuss the most recent annual report and to give interested persons an opportunity to comment on it. The intention is to commence this process in the autumn of 2000.
The CPP Investment Board was created by an Act of Parliament in December 1997. It receives funds not needed by the Canada Pension Plan to pay current pensions and invests them in capital markets. By increasing the long-term value of these funds, the CPP Investment Board will help the Canada Pension Plan to keep its pension promise to Canadians. The CPP Investment Board is a corporation governed and managed separately from the Canada Pension Plan.
The Canada Pension Plan itself is the joint responsibility of the federal and provincial governments which set contribution rates and benefit levels. The plan is administered by the federal government, which collects contributions and pays pensions. For further information contact:
Canada Pension Plan Investment Board
181 University Avenue
Suite 1800
Toronto, Ontario M5H 3M7
Telephone : 416-868-4075
Facsimile : 416-868-4083
Website : www.cppib.ca
