Home World News Canada news CPP now worth $409B as pension plan adds $17B to its coffers despite COVID-19
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CPP now worth $409B as pension plan adds $17B to its coffers despite COVID-19

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cpp now worth 409b as pension plan adds 17b to its coffers despite covid 19
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cppib canada pension 20200214

The Canada Pension Plan earned a return of 3.1 per cent after expenses during the financial year ended March 31, the board that manages the fund’s money reported Tuesday.

Net assets for Canada’s national pension plan totalled $409.6 billion as of the end of March, up from $392 billion at the end of the previous financial year.

The $17.6-billion year-over-year increase included $12.1 billion in net income from its investments. The other $5.5 billion came from contributions of more than 20 million Canadian workers covered by the plan.

While the plan made money for the year as a whole, the fourth quarter was a challenging one because of COVID-19. The fund says fixed-income assets did well as investors fled for safety, but values of stock-based investments fell.

“Despite severe downward pressure in our final quarter, the fund’s 12.6 per cent return on a 2019 calendar-year basis combined with the relative resilience of our diversified portfolio helped cushion the impact,” CEO Mark Machin said.

“Amid the significant number of concerns many Canadians have today, the sustainability of the fund is one thing they shouldn’t worry about. The fund’s long-term returns continue to help ensure the security of Canadians’ retirement benefits.”

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