Canada Pension Plan returned a nominal net 0.6% on its investments in the third quarter.Rick Baert
Canada Pension Plan, Ottawa, returned a nominal net 0.6% on its investments in the third quarter, according to the CPP Investment Board, which manages the plan’s assets.
The return helped raise the plan’s overall assets 0.5% in the quarter, to $368.3 billion ($281 billion), the board announced Nov. 9.
Also driving the asset increase was a C$1.7 billion increase in net contributions, which partially offset C$600 million in cash outflows, according to a CPP news release.
As of Sept. 30, the plan’s investments had nominal annualized returns of 12.1% for five years and 9.1% for 10 years.
The plan returned a nominal 1.8% net of fees in the second quarter.
Declines in foreign currency exchange rates relative to the Canadian dollar tempered the plan’s returns in the quarter despite strong local currency performance, Mark Machin, the board’s president and CEO, said in the release. CPPIB does not break out individual asset class returns by quarter.
The board’s asset allocation as of Sept. 30 was 36.7% public equities, 22.1% government fixed income, 23.8% real assets, 21.8% private equity, 7.7% credit infrastructure, -7% external debt issuance and -5.1% cash and absolute-return strategies. The negative balance in cash and absolute-return strategies comes from net financing through derivatives and repurchase agreements and the current net position of absolute-return strategies.
As of June 30, CPPIB had an asset allocation of 37.7% public equity, 22.1% government fixed income, 23.3% real assets, 20.9% private equity, 6.8% credit, -4.1% cash and absolute-return strategies, and -6.77% external debt issuance.