Canada Pension Plan manages positive return in latest quarter

Canada Pension Plan Investment Board returned a net 0.2% in its fiscal second quarter ended Sept. 30, the Toronto-based board announced in a news release.

In the second quarter of fiscal 2022, the fund returned a net 3.8%.

For the six-month period ended Sept. 30, the fund returned a net -4%, the release said. The portfolio delivered annualized net returns of 8.5% and 10.1%, respectively, for the five- and 10-year periods ended Sept. 30.

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CPPIB noted in the release that in the latest quarter, the fund outperformed “leading global indices during this period,” but also added that the quarterly results were “adversely affected by broad declines in global public and private equity markets and in fixed income markets.” However, CPPIB added, 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.”

In addition, gains by “external investment managers in fixed income, currencies and commodities also contributed positively to results.”

As of Sept. 30, the fund’s asset allocation was 34% private equities, 24% public equities, 14% credit investments, 10% each real estate and infrastructure, and 8% fixed income.

A spokesman for CPPIB said that benchmark returns were not provided.

Source: Pensions & Investments

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