February 14, 2001

The Canada Pension Plan Investment Board received approximately $1.0 billion from the Canada Pension Plan in the third quarter of our current fiscal year. These funds were invested as soon as they were received. The market value of invested assets at December 31, 2000 was $6.4 billion compared with $5.9 billion at September 30, 2000.

As of December 31, 2000 the Canada Pension Plan had total assets of approximately $41.6 billion. In addition to the funds under management at the CPP Investment Board, the assets include a portfolio of $29.8 billion (at cost) in provincial and federal government bonds as well as 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, and invested primarily through index strategies.

During January 2001 the CPP Investment Board implemented the increase in permissible foreign content in its portfolio to 30%, bringing the proportion of equities in Canadian markets to approximately 70%.

Given the decline in equity markets in Canada and around the world, the CPP Investment Board experienced a loss during the quarter. It totalled approximately $453 million, offsetting earlier gains and resulting in a loss of approximately $64 million for our fiscal year to date.

The CPP Investment Board is a long-term investor in the early stages of diversifying the mix of the total assets of the Canada Pension Plan. Despite the occurrence of quarterly and even annual losses from time to time, we are confident that over the long term this diversification of the portfolio through active and passive investing in different asset classes in both public and private markets will serve to enhance returns and mitigate risk.

As required by legislation, the CPP Investment Board held its first series of public meetings in each of the nine participating provinces’ capitals between January 15 and 29, 2001 to report on our Fiscal Year 2000 and respond to questions and comments from interested Canadians.

The reach of these public meetings was augmented by a series of additional meetings with groups of stakeholders as well as through media activities in each province.

 To allow the widest possible audience to have access to the content of the public meetings, a report will be posted on the CPP Investment Board’s Web site in the coming weeks. Copies of the speeches delivered by the Chairperson and the President and Chief Executive Officer are already available. Furthermore, a video on our program of meetings is being produced and will be made available to individuals and groups who wish to see and hear our message to Canadians.

We are pleased to announce the appointment of Patricia Dumas as our first Vice President – Communications and Stakeholder Relations. She joined the CPP Investment Board on January 2, 2001. Ms. Dumas brings over 25 years of experience in communications, investor relations and government relations for both the private and public sectors.

The CPP Investment Board is a Crown corporation created by an Act of Parliament in December 1997. It invests in capital markets funds not needed by the Canada Pension Plan to make current pension payments. Presently, cash flows are invested only in equities to balance the $29.8 billion bond portfolio held by the Canada Pension Plan. By increasing the long-term value of assets under management, expected to exceed $100 billion within the decade, the CPP Investment Board will help the Canada Pension Plan keep its pension promise to Canadians. The CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm?s length from governments.

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 and other benefits.            

For further information contact:
Patricia Dumas
VP Communications and Stakeholder Relations
Canada Pension Plan Investment Board
181 University Avenue, Suite 1800
Toronto, Ontario M5H 3M7
Telephone : 416-868-4086
Facsimile : 416-868-4083
E-mail: pdumas@cppib.ca
Web site : www.cppib.ca

February 14, 2001

The Canada Pension Plan Investment Board received approximately $1.0 billion from the Canada Pension Plan in the third quarter of our current fiscal year. These funds were invested as soon as they were received. The market value of invested assets at December 31, 2000 was $6.4 billion compared with $5.9 billion at September 30, 2000.

As of December 31, 2000 the Canada Pension Plan had total assets of approximately $41.6 billion. In addition to the funds under management at the CPP Investment Board, the assets include a portfolio of $29.8 billion (at cost) in provincial and federal government bonds as well as 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, and invested primarily through index strategies.

During January 2001 the CPP Investment Board implemented the increase in permissible foreign content in its portfolio to 30%, bringing the proportion of equities in Canadian markets to approximately 70%.

Given the decline in equity markets in Canada and around the world, the CPP Investment Board experienced a loss during the quarter. It totalled approximately $453 million, offsetting earlier gains and resulting in a loss of approximately $64 million for our fiscal year to date.

The CPP Investment Board is a long-term investor in the early stages of diversifying the mix of the total assets of the Canada Pension Plan. Despite the occurrence of quarterly and even annual losses from time to time, we are confident that over the long term this diversification of the portfolio through active and passive investing in different asset classes in both public and private markets will serve to enhance returns and mitigate risk.

As required by legislation, the CPP Investment Board held its first series of public meetings in each of the nine participating provinces' capitals between January 15 and 29, 2001 to report on our Fiscal Year 2000 and respond to questions and comments from interested Canadians.

The reach of these public meetings was augmented by a series of additional meetings with groups of stakeholders as well as through media activities in each province.

 To allow the widest possible audience to have access to the content of the public meetings, a report will be posted on the CPP Investment Board's Web site in the coming weeks. Copies of the speeches delivered by the Chairperson and the President and Chief Executive Officer are already available. Furthermore, a video on our program of meetings is being produced and will be made available to individuals and groups who wish to see and hear our message to Canadians.

We are pleased to announce the appointment of Patricia Dumas as our first Vice President - Communications and Stakeholder Relations. She joined the CPP Investment Board on January 2, 2001. Ms. Dumas brings over 25 years of experience in communications, investor relations and government relations for both the private and public sectors.

The CPP Investment Board is a Crown corporation created by an Act of Parliament in December 1997. It invests in capital markets funds not needed by the Canada Pension Plan to make current pension payments. Presently, cash flows are invested only in equities to balance the $29.8 billion bond portfolio held by the Canada Pension Plan. By increasing the long-term value of assets under management, expected to exceed $100 billion within the decade, the CPP Investment Board will help the Canada Pension Plan keep its pension promise to Canadians. The CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm?s length from governments.

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 and other benefits.            

For further information contact:
Patricia Dumas
VP Communications and Stakeholder Relations
Canada Pension Plan Investment Board
181 University Avenue, Suite 1800
Toronto, Ontario M5H 3M7
Telephone : 416-868-4086
Facsimile : 416-868-4083
E-mail: pdumas@cppib.ca
Web site : www.cppib.ca