Thursday, May 21, 2009

It's no wonder CPP suffered a 19 per cent loss!

With their absurd support for things like Flaherty's income trust tax, it's no wonder CPP suffers 19 per cent loss

What kind of highly politicized money manager, apart from David Denison of the CPPIB, would vocally support the income trust tax on November 1, 2006, only to lose over $300 million as a direct result? Given that man an undeserved bonus......cheerleader department.....not money manager department:

CPP suffers 19 per cent loss


May 21, 2009 12:21 PM

James Daw
Business reporter

The Canada Pension Plan suffered losses of almost 19 per cent in its last fiscal year as world stock and bond markets were hammered by the global economic meltdown.

The loss in the fiscal year ended March 31 was considerably less than the 25 per cent massacre suffered by the manager of Quebec Pension Plan during calendar 2008.

To date, CPP has lost more than 3.5 years of contributions to its reserve fund.

Reporting its first substantial loss since its creation, the CPP Investment Board announced this morning it has lost $23.6 billion or 18.62 per cent.

The loss was, however, greater than reported by some of Ontario's major public sector plans.

Yet David Denison, president of the investment board, said, "We remain well-positioned to generate the returns necessary to deliver on our mandate of helping to pay pensions for decades and generations to come."

Most contributions workers and employers make to the CPP go immediately to pay retirement and disability pensions. Only $6.6 billion was directed in the latest fiscal year to a reserve fund.

Investment losses wiped out those contributions, along with contributions from the previous 2.5 years, cutting the size of the reserve from $122.7 billion to $105.5 billion by the end of March.

Ottawa and the provinces had agreed more than a decade ago to increase contribution rates to increase the reserve fund before the mass of the Baby Boom generation starts retiring.

1 comment:

Dr Mike said...

This whole thing was a case of "tit" for "tat" , "Jim" for "David" , "David" for "Jim".

I scratch your back , you scratch mine.

The problem is that the whole thing is now tits-up.

Yahoo , can`t wait , I smell another bail-out.

Dr Mike