LAPP’s financial position continues to improve and our progress is detailed each year in our audited financial statements, which are published as part of our Annual Report each July. The most recent statements available, as signed by the Auditor General of Alberta, are for the year ending December 31, 2015. You can read detailed information about last year’s investment performance in the 2015 Annual Report.
The Board tracks investment performance throughout the year and receives quarterly investment reports that, once approved by the Board, are published on this website in Funding & Investment Publications under the heading Quarterly Investment Results.
LAPP’s return on investments last year totalled 7.9%. When we add to that a 3.9% increase in net revenue from contributions, the result is an 11.8% growth in net assets, bringing the LAPP Fund to a new high of $34.4 billion.
The 2015 year started strong with the LAPP Fund earning 6.2% on investments in the 1st quarter (Q1). Then investments markets reacted negatively because of:
This resulted on investment losses in Q2 and Q3 of 1.0% and 1.8% respectively. In Q4 LAPP earned 4.5% on its investments, bring the total year-to-date return to 7.9%.
Looking back, 2015 was our fourth straight year for double-digit growth of the LAPP Fund. These gains, taken together with the estimated cost of our future pension obligations, show LAPP started 2016, 97% funded on an accounting basis.
2016 financial results will be released with the audited statements in 2017.