Investments
Automatic professional low-fee investing.
Smarter investing for a better retirement.
The ICPP’s low-fee, cooperative investment approach is designed to optimize returns for all of our members.
Our investment philosophy for the ICPP is very simple: there is an optimal approach for all members which yields better-expected returns and lower expenses. Contributions made to the ICPP are invested professionally with appropriately designed strategies for the plan’s various Benefit Targets. Individual Members do not have to bear the burden of investing well. Instead, collective investment management supports better payouts for all members. Our core investment philosophy is built upon the following ideas and strategies:
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Canadian investments support Canadian retirements
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Equities provide the best long-term returns
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Fixed-income investments provide short-term risk control
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Diversification promotes long-term investment success
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Rules-based approaches provide the best outcomes
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Professional managers provide prudent judgment
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Low trading volume controls investment expense
Low Fee Retirement Investment Services
Addenda Capital is the investment manager for the ICPP. Addenda is a privately-owned investment management firm that manages pension, insurance and other assets. Addenda was founded in 1996 and has over $35 billion in assets under management.
Addenda provides low-fee retirement investment services through the ICPP Accumulation Fund, ICPP Payout Fund, and ICPP Annuity Preparation Fund.
The Accumulation Fund assets are invested in large capitalized equities traded on North American stock exchanges to provide long-term rates of return benchmarked against the ICPP Total Index.
The Payout Fund assets are invested in both equities and fixed income securities and designed to support lifetime payouts to pensioners of the ICPP.
The ICPP Annuity Preparation Fund invests in fixed income securities in such a way as to immunize a Member’s expected purchase of an insured annuity on an approximate basis.
Plan Performance
Total Returns (CAD$) as at June 30, 2024
3 Months
YTD
1 Year
3 Years
5 Years
ICPP Accumulation Fund
(0.4)
9.1
15.7
8.9
12.0
Passive Benchmark
2.5
12.7
20.3
9.9
12.8
ICPP Payout Fund
0.3
4.4
9.7
3.7
6.0
Passive Benchmark
1.7
6.0
11.8
4.0
6.4
ICPP Annuity Preparation Fund
0.5
(2.3)
1.6
(3.9)
(1.6)
Passive Benchmark
0.4
(2.4)
1.5
(4.0)
(1.5)
| 3 Months | YTD | 1 Year | 3 Years | 5 Years | |
|---|---|---|---|---|---|
| ICPP Accumulation Fund | (0.4) | 9.1 | 15.7 | 8.9 | 12.0 |
| Passive Benchmark | 2.5 | 12.7 | 20.3 | 9.9 | 12.8 |
| ICPP Payout Fund | 0.3 | 4.4 | 9.7 | 3.7 | 6.0 |
| Passive Benchmark | 1.7 | 6.0 | 11.8 | 4.0 | 6.4 |
| ICPP Annuity Preparation Fund | 0.5 | (2.3) | 1.6 | (3.9) | (1.6) |
| Passive Benchmark | 0.4 | (2.4) | 1.5 | (4.0) | (1.5) |
*The indicated rates of return are historical annual compounded total returns, including changes in unit value and reinvestment of all distributions. Investments in the Funds are not guaranteed, their values change frequently and past performance may not be repeated. Investment losses do and may occur, and investors could lose some or all of their investment in the Funds.
The information herein does not consider the investment objectives, financial situation or particular needs of any prospective investor. Prospective investors should consult their appropriate advisors prior to investing.
Information presented herein is obtained from sources we believe reliable, but we assume no responsibility for information provided to us from third parties. All information and opinions indicated herein are subject to change without notice. Inception date Accumulation Fund: February 2017. Inception Date Payout Fund: January 2019. Inception Date Annuity Preparation Fund: February 2019
ICPP ACCUMULATION FUND: “500-TSX” refers to a blended benchmark equal to 50% S&P /TSX Composite Total Return Index and 50% S&P 500 Total Return Index in Canadian dollars. This benchmark is used to provide reference to widely known and followed benchmarks for the ICPP Accumulation Fund.
Rates of return for the Fund are calculated on back-tested data for periods prior to the inception date and are equal to the ICPP Total Index for periods prior to January 1, 2016 for the Accumulation Fund. Back-tested performance data is based on a model and is hypothetical performance data, it does not depict actual performance returns for Funds and it has been calculated with the benefit of hindsight.
ICPP PAYOUT FUND: Benchmark returns are equal to 50% FTSE Canada Universe Bond Index, 25% S&P/TSX Composite Total Return Index and 25% S&P 500 Total Return Index in Canadian dollars determined on a monthly basis. This benchmark is used to provide reference to widely known and followed benchmarks.
Rates of return for the Fund are calculated on back-tested data for periods prior to January 1, 2017. Back-tested performance data is based on a model and is hypothetical performance data, it does not depict actual performance returns for ICPP Accumulation Fund and it has been calculated with the benefit of hindsight.
ICPP ANNUITY PREPARATION FUND: Benchmark returns are equal to two thirds of the FTSE Canada Long Term Bond Index and one third of the FTSE Canada Universe Bond Index in Canadian dollars. This benchmark is used to provide reference to widely known and followed benchmarks.
Rates of return for the Fund are calculated on back-tested data for periods prior to the inception date. Back-tested performance data is based on a model and is hypothetical performance data, it does not depict actual performance returns for ICPP Annuity Preparation Fund and it has been calculated with the benefit of hindsight.