.jpg)
16 hours ago
4
Article content
(Bloomberg) — Canada Pension Plan Investment Board notched a 7.8% return in its most recent fiscal year, as gains on stocks and data center investments helped offset the impact of a softening US dollar and a weak year in private equity.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The returns, which pushed net assets to C$793.3 billion ($576.2 billion), came in a period “marked by geopolitical uncertainty, market volatility and currency movements,” Chief Executive Officer John Graham said in a statement.
Article content
Article content
Public equities gained 17.5% and were a key driver of results, particularly in the US, led by information technology and communication services. But private equity rose just 2.9%, partly because of the poor performance of some holdings in the software business, which investors see as vulnerable to AI-related disruption.
Article content
Article content
Real assets delivered a 12.2% return, boosted by data center investments and industrial real estate in the Asia-Pacific region, the fund said.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
CPPIB’s results were hurt by the decline of the greenback against the Canadian dollar and by losses on government bonds, as expectations for central bank rate cuts shifted. The weakening of the US dollar contributed to a foreign currency loss of C$12.4 billion.
Article content
During the fiscal year ended March 31, Canada’s largest pension plan shifted some real estate, infrastructure and energy investments that were previously reported as equities to the real assets group, “to better reflect the underlying characteristics of these assets,” according to the annual report. Private equity now makes up 22% of the total fund, down from 25% a year earlier.
Article content
The pension plan made billions in new data center-related investments or commitments, including a C$225 million loan for a hyperscale expansion of a data center in Cambridge, Ontario.
Article content
CPPIB also committed $1.5 billion to an account managed by Blackstone Inc. that invests globally across diversified credit, including fund commitments, spanning private corporate credit, asset-based and real estate credit, structured products and liquid credit.
Article content
English (US)