Canada Pension Plan Investment Board delivers 0.2% returns in September quarter

• For the quarter ended September, the Canada pension fund delivered 0.2% returns “continuing to outperform leading global indices during this period”, said CPP investment in a release.
• During the same period, Indian benchmark index Sensex surged nearly 17% despite negative cues from the global markets.
• CPP investments said that the fund’s quarterly results were adversely affected by broad declines in global public and private equity markets and in fixed income markets.

Canada Pension Plan Investment Board (CPP Investments) ended its September 2022 quarter with net assets of 529 billion Canadian dollars, a net income of CA$1 billion and fund inflows of CA$5 billion during the quarter.

For the quarter ended September, the fund gave 0.2% returns, “continuing to outperform leading global indices during this period”, said CPP investment in a release.

During the same period, the Indian benchmark index Sensex surged nearly 17% backed by domestic and FII inflows (positive flows in July and August) despite negative cues from the global markets.

The Canada Pension Plan, which includes the combination of the base CPP and additional CPP accounts, achieved five- and ten-year annualized net returns of 8.5% and 10.1%, respectively, it said.

Additional Canada Pension Plan (CPP) was started to provide enhanced future benefits for workers. The increased contributions and associated benefits are referred to as additional CPP, whereas the historic contributions and associated benefits are referred to as the base CPP.

‘Portfolio remains resilient’
“Our portfolio remains resilient despite inflationary pressures, increases in central bank rates and the continued impact of the war in Ukraine, which resulted in the continued decline in global financial markets during the quarter,” said John Graham, president and CEO.

“While we expect these conditions to persist throughout the fiscal year, our diversified investment portfolio – across asset classes and geographies – continues to create long-term value for CPP contributors and beneficiaries. Our active management strategy, designed to deliver results over the long te-rm, remains on track as demonstrated by our strong 10-year net return of 10.1%.”

For six months from April to September, the fund delivered negative 4% returns.

CPP investments said that the fund’s quarterly results were adversely affected by broad declines in global public and private equity markets and in fixed income markets.

“However, the decline in value was more than offset by gains in U.S. dollar-denominated private equity, real estate and credit investments, which benefited from foreign exchange gains, and by positive returns on investments in energy and infrastructure. Gains by external investment managers in fixed income, currencies and commodities also contributed positively to results,” said CPP investments.

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