CPP fund’s return tops 9% despite market headwinds

CPP Investment's net assets rose to $714.4 billion at the end of fiscal 2024. Photo by Jeenah Moon/Bloomberg

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The Canada Pension Plan Investment Board posted an annual return of 9.3 per cent for the period to March 31, pushing net assets to $714.4 billion from $632.3 billion at the end of fiscal 2024.

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The increase consisted of $59.8 billion in net income and $22.3 billion in net transfers from the Canada Pension Plan (CPP). 

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The fund’s 10-year net return is 8.3 per cent, with cumulative net income of $492.1 billion since inception in 1999.

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John Graham, chief executive of CPPIB, said the fund’s strong performance during the fiscal year included contributions from all investment departments, which together produced one of the highest levels of annual net income in the pension investment organization’s history — despite market headwinds in the final quarter

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“Our portfolio — diversified across sectors, themes, asset types and geographic markets — is built for the long term,” he said. “And while we’re not immune to short-term market shifts, our strategy is designed to remain resilient despite periodic fluctuations.”

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On a calendar-year basis, the period for which most other pension plans report, the CPP fund produced a 14.2 net return, reflecting global equity market growth during that period.

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Public equities represent about 29 per cent of the fund’s assets, an amount matched by private equity. The balance is government bonds, credit, infrastructure and real estate.

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Twelve per cent of the CPP fund’s holdings are in Canada. The biggest allocation by geography — 47 per cent — is in the United States.

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Europe and Asia Pacific account for 19 per cent and 17 per cent respectively, while five per cent is invested in Latin America.

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The previous federal government was pushing large pension funds to boost the amount they invest in Canada and increase disclosure about how they allocate their funds.

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In his election platform, Prime Minister Mark Carney said he’s planning to use government funds to “catalyze” increased private investment in sectors including housing, defence production, trade and transportation infrastructure, digital innovation and patents, critical minerals and energy.

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