Comparing CPPIB and PSPIB FY 2010 Results
Given that PSP Investments reported its FY 2010 results, I think it would be useful to compare their results to those of CPPIB who reported back in May.
First, let me apologize, as I just noticed I never covered CPPIB’s FY 2010 results, only some quarterly results. Let’s go back to the May 20th press release:
The CPP Fund ended its fiscal year on March 31, 2010 with net assets of $127.6 billion, an increase of $22.1 billion from the prior year end. The increase in assets essentially put the Fund back to its previous highest level reported on June 30, 2008, prior to the onset of the financial crisis. The Fund rose due to increases of $16.2 billion in investment income and $6.1 billion in CPP contributions, minus operating expenses. The portfolio returned 14.9 per cent for fiscal 2010 compared with a prior year decline of 18.6 per cent.“The CPP Fund delivered one of its highest-ever annual returns, driven largely by strong public equity markets,” said David Denison, President and CEO, CPP Investment Board.
One of CPPIB’s goals for fiscal 2010 was to capitalize on investment opportunities arising in the aftermath of the financial crisis. During the year we were able to put our comparative advantages as an investor to good use, acquiring assets in private equity, real estate, infrastructure and private debt. Our long time horizon, distinct investment approach, available capital and specialized investment expertise allowed us to make significant investments last year that were beyond the reach of many investors.
“We have the benefit of being able to look beyond short-term market cycles, and to deal with volatility better than the majority of market participants,” Mr. Denison said. “Unlike many other investors, we did not suffer from capital or liquidity constraints last year. In fact, our experienced investment teams completed a number of significant transactions during the year.”
These included the acquisition of Macquarie Communications Infrastructure Group, as well as our partnerships with other investors to acquire IMS Health and Skype, investments which are expected to generate strong returns over the long term.
Five and 10-year Returns
For the five-year period ending March 31, 2010, the CPP Fund generated an annualized rate of return of 4.0 per cent, or $18.5 billion of cumulative investment income. For the 10-year period, the Fund had an annualized rate of return of 5.5 per cent, or $39
Related Articles:
- PSP Investments Up 21.5% in FY 2010
- Onex, CPPIB Unite in Bid to Buy U.K. Firm
- PSPIB in a $1.5B-Plus Secondary-Market Sale?
- Macro Hedge Funds 2010
- Hedge Fund Returns March 2010
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