CPP Investments ekes out small return in second-quarter
The Canada Pension Plan fund’s net assets increased by $1 billion in the second quarter after investments eked out a 0.1 per cent return.
The increase in net assets for the period ending Sept. 30 — bringing assets in the fund to $576 billion — came from $488 million in net income and $700 million in net transfers from the Canada Pension Plan (CPP).
The results in the latest quarter were helped by positive performance in credit and private equities and gains across U.S. dollar-denominated assets, which benefited from a strengthening U.S. dollar relative to the Canadian dollar. However, returns were offset by losses in fixed income due to continued high interest rates and weak performance in public equities as global markets declined.
“Our diversified portfolio remains resilient, and while we expect these challenging investing conditions to persist for the near term, we are confident that our active management strategy will continue to deliver positive long-term results for CPP contributors and beneficiaries,” said John Graham, chief executive of CPP Investments, the professional organization that invests money not needed to pay current CPP benefits.
The fund’s assets increased by $6 billion in the first half of the current fiscal year. However, the fund posted a net loss of $4 billion during the six-month period and net assets grew as a result of the $10 billion in net CPP contributions. The fund’s net return was negative 0.7 per cent for the first half of the year.
The fund, which includes the combination of the base CPP and additional CPP accounts added since 2019, has posted a 10-year annualized net return of 9.6 per cent. Over a 10-year period including the second quarter of fiscal 2024, CPP Investments has
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