Canada Pension Plan Investment Board (CPP Investments) ended its first quarter of fiscal 2024 on June 30, 2023, with net assets of $575 billion, compared to $570 billion at the end of the previous quarter.
A net loss of $5 billion was offset by $9 billion in net transfers from the Canada Pension Plan (CPP) to increase net assets by $5 billion for the quarter ended June 30, 2023, said the Board.
It said the Fund, which includes the combination of the base CPP and additional CPP accounts, achieved a 10-year annualized net return of 9.8%. For the quarter, the Fund’s net return was negative 0.8%. In the 10-year period up to and including the first quarter of fiscal 2024, CPP Investments has contributed $314 billion in cumulative net income to the Fund.
“The quarter’s results reflect gains across most asset classes, which were offset by the impact of foreign exchange losses due to a stronger Canadian dollar relative to the U.S. dollar,” said John Graham, President & CEO. “While we anticipate periods of uncertainty to persist, we expect our portfolio will continue to be resilient and create value for CPP contributors and beneficiaries for generations to come.”
It said the base CPP account ended its first quarter of fiscal 2024 on June 30, 2023, with net assets of $547 billion, compared to $546 billion at the end of the previous quarter. The $1 billion increase in assets consisted of a net loss of $4 billion and $5 billion in net transfers from the CPP. The base CPP account’s net return was negative 0.8% for the quarter, and a five-year annualized net return of 7.4%.
“The additional CPP account ended its first quarter of fiscal 2024 on June 30, 2023, with net assets of $28 billion, compared to $24 billion at the end of the previous quarter. The $4 billion increase in assets consisted of a net loss of $242 million and $4 billion in net transfers from the CPP. The additional CPP account’s net return was negative 0.9% for the quarter, and an annualized net return of 5.0% since inception in 2019,” said the Board
“The additional CPP was designed with a different legislative funding target and contribution rate compared to the base CPP. Given the differences in their design, the additional CPP has had a different market risk target and investment profile since its inception in 2019. As a result of these differences, we expect the performance of the additional CPP to generally differ from that of the base CPP.”
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