The Canada Pension Plan Investment Board posted a small loss in its most recent fiscal quarter owing to currency exchange and higher interest rates.
CPP Investments said Thursday that it posted a negative return of 0.8% for the quarter ended June 30. The net loss of $5 billion was offset by net transfers from the Canada Pension Plan, increasing the fund’s net assets to $575 billion from $570 billion at the end of the previous quarter.
“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 CPP Investments president and CEO John Graham in a release.
Higher interest rates led to declines in fixed income assets, while public equities and renewable energy contributed gains, CPP Investments said. Investments in credit and real estate were flat in local dollar terms.
The fund’s 10-year annualized net return is 9.8%.