On April 1, 2006, we introduced a performance measurement framework called the CPP Reference Portfolio. This is a notional portfolio comprised of 40 per cent global equities, 25 per cent Canadian equities, 25 per cent fixed income and 10 per cent inflation-sensitive assets. The CPP Reference Portfolio is designed to reflect the liabilities specific to the CPP. Furthermore, it reflects the systematic risk assumptions incorporated in the 1997 CPP reforms and the CPP’s 9.9 per cent contribution rate.

The CPP Reference Portfolio provides the board of directors, management and CPP stakeholders with an understandable, low-cost and demanding investment benchmark to evaluate the impact that CPP Investment Board investment and organizational decision making has on the performance of the CPP fund. It is benchmarked against broad market indices maintained by organizations such as S&P/Citigroup and Scotia Capital.