储蓄计划【转帖】CPP Investment suffers

annarosa · Sep 19th, 2009, 03:27

CPP Investment Board suffers $17.2B fiscal-year asset tumble to $105.5B

TORONTO - The Canada Pension Plan Investment Board's strategy remains
"sound and appropriate" despite a 14 per cent asset shrinkage in the
past fiscal year, says CPPIB president David Denison.

In fact, the CPP Fund stands to benefit from the global economic and
financial-market downturn, Denison said Thursday.

The board, which invests billions of dollars not immediately needed to
cover Canada Pension Plan benefits, reported that the CPP Fund shrank
by $17.2 billion to $105.5 billion in the fiscal year ended March 31.

This reflects an investment return of negative 18.6 per cent amid what
the CPPIB observed was "the worst global financial crisis since the
Great Depression."

The loss on investments totalled $23.6 billion, partly offset by $6.6
billion in contributions from employers and workers.

"While the economic crisis has created near-term declines in the value
of the portfolio, in our view it's also creating significant long-term
investment opportunities for us," Denison told a media conference
call.

He said that while each yearly result is important, the board's
investment strategy "is designed to perform over significantly longer
time frames."

However, "in the short term, we have made some tactical changes in
terms of how we conduct some of our active management programs."

Denison added that the CPPIB's long investment horizon and steady cash
flow from contributions enable it "to capitalize on the current
economic environment for the long-term benefit of the CPP Fund and its
17 million contributors and beneficiaries."

The CPPIB "is truly in a unique position," he said, as income from the
fund is not expected to be needed to help pay pensions for another 11
years.

The board said the fiscal year's 18.6 per cent negative investment
return essentially matched the internal market-based benchmark against
which it measures its performance relative to other big funds.

"Unlike many other market participants, we were not force to sell
assets to meet liquidity needs," Denison observed.

"And given our long investment horizon, we're going to continue to
hold those assets - and indeed believe they are going to recover their
value for the CPP Fund in the years ahead and thereby provide positive
performance."

In the near term, distress in the property market is offering unusual
opportunities, Denison said.

"In the real estate sectors we're seeing properties that very rarely
trade - the proverbial crown jewels within other entities' portfolios
- now being brought to the market."

The CPP Fund is "one of the few investors today with the ability to
acquire the kinds of large-scale and very attractive assets that have
become available over the past year," he said.

He added that he foresees cut-price assets "becoming increasingly
available" in the current fiscal year, especially outside Canada.

Sep 19th, 2009, 03:27	#1
annarosa Senior Member 注册日期: Oct 2008 帖子: 13,290 积分:93 精华:31	【转帖】CPP Investment suffers CPP Investment Board suffers $17.2B fiscal-year asset tumble to $105.5B TORONTO - The Canada Pension Plan Investment Board's strategy remains "sound and appropriate" despite a 14 per cent asset shrinkage in the past fiscal year, says CPPIB president David Denison. In fact, the CPP Fund stands to benefit from the global economic and financial-market downturn, Denison said Thursday. The board, which invests billions of dollars not immediately needed to cover Canada Pension Plan benefits, reported that the CPP Fund shrank by $17.2 billion to $105.5 billion in the fiscal year ended March 31. This reflects an investment return of negative 18.6 per cent amid what the CPPIB observed was "the worst global financial crisis since the Great Depression." The loss on investments totalled $23.6 billion, partly offset by $6.6 billion in contributions from employers and workers. "While the economic crisis has created near-term declines in the value of the portfolio, in our view it's also creating significant long-term investment opportunities for us," Denison told a media conference call. He said that while each yearly result is important, the board's investment strategy "is designed to perform over significantly longer time frames." However, "in the short term, we have made some tactical changes in terms of how we conduct some of our active management programs." Denison added that the CPPIB's long investment horizon and steady cash flow from contributions enable it "to capitalize on the current economic environment for the long-term benefit of the CPP Fund and its 17 million contributors and beneficiaries." The CPPIB "is truly in a unique position," he said, as income from the fund is not expected to be needed to help pay pensions for another 11 years. The board said the fiscal year's 18.6 per cent negative investment return essentially matched the internal market-based benchmark against which it measures its performance relative to other big funds. "Unlike many other market participants, we were not force to sell assets to meet liquidity needs," Denison observed. "And given our long investment horizon, we're going to continue to hold those assets - and indeed believe they are going to recover their value for the CPP Fund in the years ahead and thereby provide positive performance." In the near term, distress in the property market is offering unusual opportunities, Denison said. "In the real estate sectors we're seeing properties that very rarely trade - the proverbial crown jewels within other entities' portfolios - now being brought to the market." The CPP Fund is "one of the few investors today with the ability to acquire the kinds of large-scale and very attractive assets that have become available over the past year," he said. He added that he foresees cut-price assets "becoming increasingly available" in the current fiscal year, especially outside Canada.