'Times like this call for a steady hand and a patient approach,' says John Graham
The Chief Actuary of Canada has affirmed, in its most recent review, that CPP Investments is sustainable for at least 75 years. Its steady growth has made it a cornerstone of financial security for Canadians – one that continues to be strong and resilient, says John Graham, president and chief executive officer at CPP Investments.
“We designed a long-term investment portfolio that can navigate through market cycles and economic uncertainties. It’s this prudent and measured approach that has helped grow the fund to $576 billion, achieving a 10-year annualized net rate of return of 9.6 percent as of September 30, 2023,” Graham says.
Graham highlights some of the fund’s key investments this year:
- A partnership with US private equity investor Silver Lake to acquire management software company Qualtrics for $12.4 billion
- A commitment of C$200 million to Canadian buyout and growth funds, secondary investments, and direct co-investments through a partnership with Northleaf Capital Partners
- A C$143-million partnership with European energy firm Power2X to finance projects aimed at decarbonizing industrial operations through renewable energy sources
“We continue to invest in a wide range of asset classes in many different parts of the world. Our investing professionals look for investments that will deliver outsized returns over the very long term,” Graham adds.
Sustainability and the future of the fund
CPP Investments is committed to integrating climate risk into all investment decisions and has pledged to achieve net-zero emissions by 2050. “One of the ways we’ll achieve this is by financing decarbonization efforts in high-emitting sectors,” Graham says.
Investments in projects like Wolf Midstream, a Calgary-based energy midstream company contributing to carbon emissions reduction in Alberta, is a testimony to the fund’s efforts. “Our backing of Wolf, along with our partnership with Canadian energy leaders such as Enbridge, highlight the investment and innovation opportunities in this vitally important component of the Canadian economy,” Graham continues.
Looking ahead, the chief acknowledged the uncertainties surrounding the current landscape, citing the rise of generative AI, inflation and interest rate pressures, and geopolitical influences.
“Times like this call for a steady hand and a patient approach. Canadians can be confident that we are well positioned to pursue the most attractive investment opportunities, always with the aim of safeguarding your financial future in retirement,” Graham says.
“I am constantly reminded of how lucky we are to live in this country, home to one of the most secure pension plans in the world. At CPP Investments, we’re immensely proud of the role we play in strengthening the CPP and want you to know it will be there for generations to come.”
