The Canada Pension Plan Investment Board (CPP Investments) ended its fiscal year on March 31 with net assets of $570 billion, compared to $539 billion at the end of fiscal 2022.
The Canada Pension Plan Investment Board (CPP Investments) ended its fiscal year on March 31 with net assets of $570 billion, compared to $539 billion at the end of fiscal 2022.
The $31 billion increase in net assets consisted of $8 billion in net income and $23 billion in net transfers from the Canada Pension Plan (CPP). CPP Investments received greater than usual net CPP cash flows in fiscal 2023 due to higher employment rates, an increased limit to the year's maximum pensionable earnings, an increase to additional CPP contribution inflows, and a lump-sum inflow in the fourth quarter due to forecasting adjustments made by the CPP.
The fund, which includes the combination of the base CPP and additional CPP accounts, achieved a net return of 1.3% for the fiscal year. Since the CPP is designed to serve multiple generations of beneficiaries, evaluating the performance of CPP Investments over extended periods is more suitable than in single years. The fund returned a 10-year annualized net return of 10%. Since its inception in 1999, CPP Investments has contributed $386 billion in cumulative net income to the fund.
John Graham, its president and CEO, says, “The positive fiscal-year results reflect returns on investments in infrastructure and certain U.S. dollar-denominated private equity and credit assets, which benefited from foreign exchange. External investment managers employing quantitative, equity, and fixed income trading strategies also contributed positively to results. Our performance was partially offset by significant declines in both equities and fixed income across major markets as high inflation and rising interest rates weighed heavily on both asset classes.”
