Rebounding stock markets helped the CPP Investment Board return to the black in the second quarter.

The board said today that for the three months ended June 30 it earned $3.1 billion, for a rate of return of 5.5%. That compares with a loss in the previous quarter of $1.2 billion, or a negative return of 2.3%.

“The positive returns on Canada Pension Plan assets during the first quarter were driven by both declining interest rates and the strong rebound in global equity markets,” John MacNaughton, president and CEO of the CPP Investment Board, said in a statement. “While our first quarter results are encouraging, Canadians should note that what matters isn’t how we perform over any three month period, but how we perform over the next two decades.”

The consolidated CPP portfolio, which includes contributions to the CPP net of benefits paid, grew to $61.6 billion, an increase of $6 billion in the three-month period. At June 30 the assets of the Canada Pension Plan consisted of $38 billion in fixed income securities administered by the Department of Finance in Ottawa and $23.6 billion in equities and real estate managed by the board.

The fixed-income securities, representing about 62% of the consolidated CPP portfolio, consisted of $30.8 billion in federal and provincial government bonds and $7.2 billion in an interest bearing cash deposit. These assets earned $1.4 billion for a return of 4%.

The CPP Investment Board portfolio, representing about 38% of the consolidated CPP portfolio, consisted of 91% public equities, 6% private equities and 3% real estate and cash. These assets earned $1.7 billion for a return of 8.6%.

The CPP Investment Board invests a portion of the CPP assets while taking into account the total CPP portfolio.

The CPP Investment Board is a Crown corporation created in December 1997. It invests in capital markets the funds not needed by the Canada Pension Plan to pay current pensions. Based in Toronto, the board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments.