CPP Investments reports $675.1bn in net assets, achieving 3.6% quarterly return

As of September 30, CPP Investments reported net assets of $675.1bn, an increase from $646.8bn at the end of the previous quarter.

This $28.3bn growth included $23.1bn in net income and $5.2bn in net transfers from the Canada Pension Plan (CPP). For the quarter, the fund's net return was 3.6 percent, while the 10-year annualized net return remained at 9.1 percent.

For the first six months of fiscal 2025, the fund's net assets increased by $42.7bn, driven by $29.3bn in net income and $13.3bn in net CPP transfers. The fund's net return for the period was 4.6 percent. Since its inception in 1999, CPP Investments has generated $461.7bn in cumulative net income.

John Graham, president and CEO of CPP Investments, stated that despite heightened market volatility, the portfolio delivered stable returns across asset classes and geographies, reflecting its long-term design.

Base and Additional CPP Accounts

The base CPP account ended the quarter with $626.1bn in net assets, growing from $603.6bn in the previous quarter. This $22.5bn increase consisted of $21.4bn in net income and $1.1bn in net CPP transfers.

The account's net return for the quarter was 3.5 percent, with a five-year annualized return of 8.0 percent.

The additional CPP account reported net assets of $49.0bn, up from $43.2bn last quarter. This $5.8bn growth included $1.7bn in net income and $4.1bn in CPP transfers. The additional CPP's net return for the quarter was 3.7 percent, with a five-year annualized return of 5.1 percent.

Due to its distinct legislative funding profile and contribution rates, the additional CPP account is expected to grow at a faster rate than the base CPP account.

Investment Highlights

CPP Investments undertook several key investments during the quarter:

• Active equities: CPP Investments sold its 6 percent stake in Delhivery, India's largest third-party logistics provider, for $298m.
• Credit investments: Investments included US$74m for AffiniPay, US$72m for a mezzanine loan in San Francisco, and US$140m in a commercial mortgage-backed security for Bronx Terminal Market.
• Private equity: Commitments included US$50m for Kohlberg Investors X and US$75m for Radical Growth I, focusing on AI-driven ventures.
• Real assets: CPP Investments committed $532m to Iguá Saneamento in Brazil and entered a deal to acquire a 12 percent interest in AirTrunk, a data centre operator, as part of a transaction valuing the company at $22bn.

Long-Term Sustainability

CPP Investments maintains its long-term financial sustainability as reaffirmed by the Chief Actuary's 2022 triennial review. The base CPP account is projected to achieve an annual rate of return of 3.69 percent above inflation, while the additional CPP is expected to yield 3.27 percent.

CPP Investments continues to focus on building a portfolio that balances maximum returns with risk management, ensuring the CPP's ability to meet obligations for contributors and beneficiaries.

Operational Updates

CPP Investments hosted in-person public meetings across Canada to enhance transparency and accountability.

Graham was also named chair of FCLTGlobal's board, while Richard Manley joined the Greenhouse Gas Protocol's steering committee to advance sustainability standards globally.