TORONTO, ON (11-12-08): The CPP Fund ended the second quarter of fiscal 2009 on September 30, 2008 with assets of $117.4 billion, reflecting investment returns of negative 7.5 per cent for the first six months of the fiscal year and negative 8.5 per cent for the second quarter. The Fund declined $5.3 billion in value for the fiscal year to date and $10.3 billion since the previous quarter.

The Fund's four-year annualized investment rate of return through September 30 was 6.6 per cent, which has resulted in $22.0 billion of investment income for the Fund over the four-year period. The CPP Investment Board reflects its long investment horizon by regularly reporting rolling four-year performance. "The CPP Fund is invested for the long term, has a broadly diversified portfolio and steady cash inflows, and is structured to withstand stock market cycles in order to help secure CPP pensions for decades and generations," said David Denison, President and CEO, CPP Investment Board. "While the Fund was adversely impacted by broad declines in public equity markets, it had virtually no losses due to credit or counterparty exposures in this period."

"Although the turmoil in financial markets has been unsettling for everyone, unlike many short-term investors who have had to sell assets at distressed prices, the CPP Investment Board is very well-positioned to acquire attractive assets at advantageous prices that will generate significant long-term value for the Fund," said Mr. Denison. "While market conditions have worsened since the end of the quarter, we remain confident in our ability to generate superior long-term risk-adjusted returns to help sustain the CPP for the benefit of 17 million Canadians. Given our mandate, the CPP Investment Board invests not for the quarter, but for the quarter century and beyond."

Long-term Sustainability

Consistent with the successful CPP reforms of 10 years ago, the CPP Fund was created to help partially pre-fund future pensions. CPP contributions are expected to exceed annual benefits paid through to the end of 2019, providing an 11-year period before a portion of the investment income is needed to help pay CPP benefits.