Quarterly results show quarter-over-quarter rise in assets
Canada Pension Plan Investments Board added $14.4 billion to its net assets in the first quarter of 2024, with total assets up to $646.8 billion from $632.3 billion in the previous quarter.
The increase in net assets came from $6.3 billion in cash and $8.1 billion in net transfers from the Canada Pension Plan, while the fund achieved a 10-year annualized net return of 9.1% with a net return of 1.0% for the quarter.
"Our diversified portfolio is performing as designed with gains across most asset classes," said John Graham, President and CEO. "We continue to prudently manage the Fund to deliver value to CPP contributors and beneficiaries over the very long term."
A mix of public equity and private asset class investments were successful for CPP Investments, with gains driven by credit and US-dollar denominated assets which benefitted from the greenback’s strength against the Loonie.
But government bonds were impacted by weakened global expectation of rate cuts amid stubborn inflation.
With AI-related investments piquing the interest of most investors, retail and institutional, CPP Investments’ credit investments included US$250 million in a loan facility to support CoreWeave, Inc. to purchase contracted Nvidia Graphics Processing Units (GPU) servers for cloud computing. The US firm provides cloud infrastructure at scale to support artificial intelligence and machine learning workstreams and is one of the largest purchasers of Nvidia GPUs.
Among private equity investments was a committed US$600 million to Thoma Bravo XVI, L.P., which will target control-oriented software buyouts in the application, infrastructure and cybersecurity sub-sectors within North America and Europe.
And in real assets, CPP Investments entered into a definitive agreement to jointly acquire ALLETE, Inc., which focuses on addressing the clean-energy transition by expanding renewables, reducing carbon, enhancing grid resiliency, and driving innovation. CPP Investments will own 40% of the business upon closing. The deal, alongside Global Infrastructure Partners, totals US$6.2 billion, including the assumption of debt.
Among actual or planned divestments, CPP Investments agreed to sell its entire stake in the firm that holds the rights to the two preeminent global motorcycling events for approximately $1.9 billion.
Executive changes
CPP Investments has made several executive changes over the first quarter of 2024 including Priti Singh who was appointed senior managing director & chief risk officer.
She is responsible for the board’s global risk management functions, including incorporating risk perspectives into all investment and operational processes, and previously served as senior managing director & global head of Capital Markets and Factor Investing.
