CPP Net Assets Increased by C$62.3bn in Fiscal 2024

Canada Pension Plan Investment Board (CPP Investments) had a net asset increase of C$62.3 billion ($45.6 billion) at its 2024 fiscal year end in March.

The board announced that the increase consisted of C$46.4 billion ($34 billion) in net income and C$15.9 billion ($11.7 billion) in net transfers from the Canada Pension Plan (CPP).

The fund also achieved a net annual return of 8% for the fiscal year and a 9.2% 10-year annualized net return.

The high returns were predominantly due to the strong performance of the public equity market and gains in its private equity portfolio, as well as investments in credit, infrastructure and energy, according to the board.

Public equities made up 28% of the portfolio, compared to private equities which represented 31%. Infrastructure and real estate each made up 8% of the portfolio, with credit (13%) and government bonds (12%) representing the rest of the asset classes in the portfolio.

The returns were offset by the overall weaker performance of emerging markets compared to developed markets and lower performance of real estate assets.

The majority of the fund’s assets are located in the US (42%) and Canada (12%), while 21% are in Asia Pacific markets, 19% in Europe and 6% in Latin America.

John Graham, president and CEO, said:  “The CPP fund’s growth this year continued the trend of reaching heights several years ahead of initial actuarial projections... 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.”

Graham also predicted that current geopolitical and economic uncertainties may affect the investment environment in the coming years.