Canada Pension Plan’s investment manager reported solid performance
CPP Investments added $62.3 billion to its net assets according to its annual results for the year ended March 31, 2024.
The investment firm for the Canada Pension Plan saw total net assets rise to $632.3 billion, from $570 billion in FY23, with a net return of 8% for the fiscal year and a 10-year annualized net return of 9.2%. The rise in net assets consisted of $46.4 billion in net income and $15.9 billion in net transfers from the CPP.
“The CPP Fund’s growth this year continued the trend of reaching heights several years ahead of initial actuarial projections,” said John Graham, President & CEO. “Solid performance by all of the investment departments and key corporate functions helps demonstrate how our strategy is on track.”
The results reflect stronger performance in public equity, private equity, credit, infrastructure, and energy, offset by weakness in emerging markets and real estate assets.
The fund’s diverse portfolio as of March 31, 2024, included 31% allocated to private equities, 28% to public equities, 13% to credit, 12% to government bonds, 8% to infrastructure, and 8% to real estate. The lion’s share (42%) is allocated to United States assets, with 21% to Asia Pacific, 19% to Europe, 12% to Canada, and 6% to LatAm.
Looking at five-year annualized net returns by asset class:
- Public equities 8.4%
- Private equities 13.9%
- Government bonds -0.3%
- Credit 3.8%
- Real estate 0.7%
- Infrastructure 5.9%
“Since the creation of CPP Investments 25 years ago, we have made a number of strategic decisions that have generated significant value above initial projections, with investment returns comprising more than two-thirds of total Fund assets to date,” added Graham. “As we head into our next quarter century, we are mindful of continuing geopolitical and economic uncertainties that may affect the investment environment, however, we have strong conviction that our people and our strategy will allow us to continue to deliver on our mandate for generations to come.”
