February 12, 2004

FISCAL 2004 THIRD-QUARTER RESULTS: CPP RESERVE FUND GROWS TO $66.3 BILLION 

The CPP Investment Board announced today that for the three months ending December 31, 2003, assets available to the Canada Pension Plan earned $3.1 billion, producing a rate of return of 5 percent. 

During the nine months ending December 31, 2003, assets available to the Canada Pension Plan earned $8 billion, producing a rate of return of 13.9 percent. 

At December 31, 2003, the assets of the Canada Pension Plan consisted of $30.9 billion in equities and real estate managed by the CPP Investment Board in Toronto, and $35.4 billion in fixed-income securities administered by the Department of Finance in Ottawa.

The CPP Investment Board portfolio, representing approximately 47 percent of the total CPP portfolio, consisted of 92 percent public equities, 5 percent private equities, 1 percent cash and 2 percent real estate and infrastructure. For the three months ending December 31, 2003, these assets earned $2.8 billion for a return of 10 percent. For the nine months ending December 31, 2003, these assets earned $5.8 billion for a return of 26 percent. 

The fixed-income securities, representing approximately 53 percent of the total CPP portfolio, consisted of $29.8 billion in federal and provincial government bonds and $5.6 billion in an interest bearing cash deposit. For the three months ending December 31, 2003, these assets earned $326 million for a return of 1.2 percent. For the nine months ending December 31, 2003, fixed-income securities earned $2.2 billion for a return of 6.1 percent.

The total CPP portfolio, which includes investment earnings and contributions to the CPP net of benefits paid, grew to $66.3 billion, an increase of $1.8 billion from the previous quarter.

“The Canada Pension Plan’s strong investment performance this fiscal year to date is the result of diversification by the CPP Investment Board into publicly-traded equities and strong equity markets,” said John MacNaughton, President and CEO, CPP Investment Board. “While stock markets are always unpredictable, we can say with confidence that our diversification strategy continues to strengthen the Canada Pension Plan.”

Based on actuarial projections, CPP contributions are expected to exceed benefits until 2021, providing a 17-year period before a portion of the investment income is needed to help pay CPP benefits.

The CPP Investment Board is a Crown corporation created by an Act of Parliament in December 1997. It invests in capital markets the funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are currently invested in equities and real estate to balance the cash and bonds owned by the Canada Pension Plan. By increasing the long-term value of funds, the CPP Investment Board will help the Canada Pension Plan to keep its pension promise to Canadians. Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. Its fiscal year is from April 1 to March 31. For more information about the CPP Investment Board, visit www.cppib.ca.

A teleconference has been scheduled for November 6, 2003 at 11 a.m. EST to discuss these results. Journalists who wish to participate please contact Jennifer Ross at 416-868-4682 or jross@cppib.ca. The teleconference will also be webcast live at www.cppib.ca.

For further information contact:
Ian Dale
Vice President
Communications and Stakeholder Relations
416-868-4086
idale@cppib.ca

Or

John Cappelletti
Manager
Communications and Stakeholder Relations
416-868-0308
jcappelletti@cppib.ca        

February 12, 2004

FISCAL 2004 THIRD-QUARTER RESULTS: CPP RESERVE FUND GROWS TO $66.3 BILLION 

The CPP Investment Board announced today that for the three months ending December 31, 2003, assets available to the Canada Pension Plan earned $3.1 billion, producing a rate of return of 5 percent. 

During the nine months ending December 31, 2003, assets available to the Canada Pension Plan earned $8 billion, producing a rate of return of 13.9 percent. 

At December 31, 2003, the assets of the Canada Pension Plan consisted of $30.9 billion in equities and real estate managed by the CPP Investment Board in Toronto, and $35.4 billion in fixed-income securities administered by the Department of Finance in Ottawa.

The CPP Investment Board portfolio, representing approximately 47 percent of the total CPP portfolio, consisted of 92 percent public equities, 5 percent private equities, 1 percent cash and 2 percent real estate and infrastructure. For the three months ending December 31, 2003, these assets earned $2.8 billion for a return of 10 percent. For the nine months ending December 31, 2003, these assets earned $5.8 billion for a return of 26 percent. 

The fixed-income securities, representing approximately 53 percent of the total CPP portfolio, consisted of $29.8 billion in federal and provincial government bonds and $5.6 billion in an interest bearing cash deposit. For the three months ending December 31, 2003, these assets earned $326 million for a return of 1.2 percent. For the nine months ending December 31, 2003, fixed-income securities earned $2.2 billion for a return of 6.1 percent.

The total CPP portfolio, which includes investment earnings and contributions to the CPP net of benefits paid, grew to $66.3 billion, an increase of $1.8 billion from the previous quarter.

"The Canada Pension Plan's strong investment performance this fiscal year to date is the result of diversification by the CPP Investment Board into publicly-traded equities and strong equity markets," said John MacNaughton, President and CEO, CPP Investment Board. "While stock markets are always unpredictable, we can say with confidence that our diversification strategy continues to strengthen the Canada Pension Plan."

Based on actuarial projections, CPP contributions are expected to exceed benefits until 2021, providing a 17-year period before a portion of the investment income is needed to help pay CPP benefits.

The CPP Investment Board is a Crown corporation created by an Act of Parliament in December 1997. It invests in capital markets the funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are currently invested in equities and real estate to balance the cash and bonds owned by the Canada Pension Plan. By increasing the long-term value of funds, the CPP Investment Board will help the Canada Pension Plan to keep its pension promise to Canadians. Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. Its fiscal year is from April 1 to March 31. For more information about the CPP Investment Board, visit www.cppib.ca.

A teleconference has been scheduled for November 6, 2003 at 11 a.m. EST to discuss these results. Journalists who wish to participate please contact Jennifer Ross at 416-868-4682 or jross@cppib.ca. The teleconference will also be webcast live at www.cppib.ca.

For further information contact:
Ian Dale
Vice President
Communications and Stakeholder Relations
416-868-4086
idale@cppib.ca

Or

John Cappelletti
Manager
Communications and Stakeholder Relations
416-868-0308
jcappelletti@cppib.ca