CPP Fund exceeds $183 billion

The CPP Fund ended its fiscal year on March 31, 2013 with net assets of $183.3 billion, compared to $161.6 billion at the end of fiscal 2012.

This marked a $21.7 billion increase for the year, which consisted of $16.2 billion in net investment income after operating costs and $5.5 billion in net CPP contributions.

The portfolio delivered a gross investment return of 10.1% for fiscal 2013.

“All of CPPIB’s diverse investment programs played a part in delivering the fund’s substantial increase in assets,” says Mark Wiseman, president & CEO of the CPP Investment Board.

Read: CPP and life expectancy

He adds, “We’re leveraging this growth to build the foundation for a leading global investment organization that will position CPPIB to create enduring value for all contributors and beneficiaries.”

In the ten-year period up to and including fiscal 2013, the board contributed $75.1 billion in cumulative net investment income to the fund after operating costs.

“While the strength of public equity markets was the leading factor in the solid annual return this year, CPPIB’s active investment programs also contributed,” states Wiseman.

Read: How much retirement income do you really need?

During fiscal 2013, CPPIB completed 36 transactions of over $200 million in 11 countries around the world. Highlights for the year include:

• A debt agreement with Formula One Group to finance US$400 million of a US$1.0 billion private high-yield loan through CPPIB Credit Investments Inc;

• The acquisition of Suddenlink Communications, alongside BC Partners and Suddenlink management for US$6.6 billion. Suddenlink is a cable broadband company in the U.S;

• The US$1.1 billion acquisition of Tomkins Air Distribution division, a leading manufacturer of air ventilation system components. Tomkins is an industrial holding company co-owned by CPPIB and Onex Corporation;

• Two direct private equity secondaries investments, where we have provided liquidity to limited partners in an existing private equity fund. a US$654 million commitment to the Behrman Capital PEP L.P. Fund; and

• The acquisition of a 49.99% interest in Grupo Costanera, with an equity investment of $1.14 billion. Grupo Costanera is the largest urban toll road operator in Chile, with five major urban highways in a 188-kilometre network.

Read: Hot topics: CPP and OAS new rules