In its annual report released July 23rd. 2009, the Canadian Public Sector Pension Investment Board, which invests the proceeds of contributions for the pension plans of the Canadian Public Service, the Canadian Forces, the RCMP and the Reserve Force Pension Plan, said its consolidated net assets dropped in fiscal 2009 to $33.8 billion from $38.9 billion.The loss of $9.5 billion was offset by about $4.4 billion more in contributions during the year, resulting in a net loss $5.1 billion.
This is the second year the board’s portfolio has taken a hit. Returns dropped 0.3 per cent for fiscal 2008.Board chief executive officer Gordon J. Fyfe acknowledged that performance lagged behind other large Canadian pension plans in 2009, but said the four-year average remains at the median.Board chairman Paul Cantor said the inflow of funds is expected to exceed pension obligations for the next 21 years.“Unlike many funds, we have no pressing short-term obligations to pensioners that will force us to sell assets today at a distressed prices,” he said.
Mark Boutet, vice-president of communications for the board, said managers changed their strategy in 2004 to go into private-market assets like real estate and infrastructure. These are long-term investments, he said.
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