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The Canada Pension Plan Investment Board (CPP Investments) concluded its fiscal year on March 31, 2024, with net assets totaling CA$632.3 billion, marking a significant increase from CA$570.0 billion at the end of fiscal 2023. This CA$62.3 billion growth in net assets was driven by CA$46.4 billion in net income and CA$15.9 billion in net transfers from the Canada Pension Plan (CPP).
The Fund, which encompasses both the base CPP and additional CPP accounts, recorded a net return of 8.0% for the fiscal year. Given the CPP's design to benefit multiple generations, long-term performance metrics provide a more accurate gauge of success. Over a 10-year period, the Fund achieved an annualized net return of 9.2%. Since its inception in 1999, CPP Investments has generated a cumulative net income of CA$432.4 billion for the Fund.
Annual results were bolstered by strong performances in public equity markets, gains in the private equity portfolio, and investments in credit, infrastructure, and energy sectors. However, these gains were partially offset by weaker performance in emerging markets compared to developed markets and lower returns from real estate assets.
Corporate Developments
CPP Investments has been recognized as one of the world’s top-performing public pension funds by Global SWF, based on annualized returns from fiscal years 2014 to 2023 (Global SWF Data Platform, May 2024). This accolade underscores the Fund's strong performance and effective management strategies.
In addition to its financial achievements, CPP Investments issued a joint statement with Canada’s leading pension plan investment managers, urging companies to adopt the new International Sustainability Standards Board (ISSB) disclosure framework. This initiative aims to enhance trust and confidence in corporate sustainability disclosures, thereby informing better investment decisions.
Mark Machin, President and CEO of CPP Investments, expressed satisfaction with the Fund's performance, stating, "Our results this fiscal year demonstrate the strength of our diversified investment strategy and the resilience of our portfolio in navigating market volatility. We are committed to delivering long-term value for our beneficiaries while ensuring sustainable growth."
The fiscal year also saw CPP Investments make significant strides in expanding its portfolio. Key investments included strategic acquisitions in the technology and healthcare sectors, as well as increased holdings in renewable energy projects. These investments are part of CPP Investments’ broader strategy to position the Fund for future growth and sustainability.
CPP Investments' robust performance in fiscal 2024, highlighted by an 8% net return and a CA$62.3 billion increase in net assets, underscores its position as a leading global pension fund. With a strong emphasis on sustainability and responsible investing, CPP Investments is well-positioned to continue delivering value for its beneficiaries across multiple generations.
