CPP Investments achieves a milestone, securing the CPP Fund's financial future with a record high in assets
CPP Investments has announced its Fiscal Year in Review.
As of March 31, CPP Investments has grown the Canada Pension Plan (CPP) Fund to $632.3bn in net assets, surpassing $600bn several years ahead of expectations.
This past year, the CPP Fund earned $46.4bn in net income with an 8.0 percent net return. The Fund’s long-term performance shows an annualized net return of 9.2 percent over the past decade. The cumulative net income over this period stands at $336.7bn.
Over the past 25 years, the Fund has grown from an initial transfer of $12m to $632.3bn in total net assets, driven by $432.4bn in cumulative net income.
John Graham, president, and CEO, reflects on this milestone saying, “As we mark 25 years of investing for Canadians, I’m proud that we remain committed to earning your trust each and every day.”
CPP Investments adopts a diversified investment strategy to maximize returns while managing risk. The Fund's asset composition as of March 31, includes 31 percent in private equities, 28 percent in public equities, 13 percent in credit, 12 percent in government bonds, and 8 percent each in infrastructure and real estate.
The Fund invests globally, with 42 percent in the United States, 21 percent in Asia Pacific, 19 percent in Europe, 12 percent in Canada, and 6 percent in Latin America, spanning 56 countries.
Recent significant transactions include a $250m commitment in Canadian private equity through Northleaf Capital Partners, a $268m loan investment in Australia's TEG, and a $2.9bn investment for a 17.5 percent stake in Italy’s NetCo, the most extensive telecoms network in the country.
CPP Investments emphasizes sustainable investing, committing to achieving net-zero greenhouse gas emissions across the Fund and its operations by 2050.
As part of this commitment, the Fund’s investments in green and transition assets increased to $83bn in 2024, with a target of at least $130bn by 2030. CPP Investments has partnered with more than 15 companies to help them reduce their operating emissions.
CPP Investments maintains a long-term focus, ensuring the financial sustainability of the CPP Fund. The Office of the Chief Actuary, an independent federal body, provides checks and balances, projecting the Fund's sustainability for at least the next 75 years.
The most recent report in December 2022 reaffirmed this sustainability.
Looking forward, CPP Investments said it will continue to pursue the best possible investments to benefit future generations of Canadians, adhering to a strategy that does not merely consider the next quarter but focuses on the next quarter century.
