The Canada Pension Plan Investment Board (CPPIB) reported strong performance and growth of net assets for the CPP fund for the third quarter ended Dec. 31.
Due largely to “strong returns in both public and private equity assets,” the CPPIB said in a release that the fund’s net assets were $475.7 billion, compared with $456.7 billion at the end of the previous quarter.
The fund also achieved 10-year and five-year annualized net nominal returns of 10.8% and 9.7%, respectively, and 5.1% for the quarter (net of all CPP Investments costs). For fiscal 2021 year-to-date, net nominal returns are 16.4%.
“A number of factors lifted the fund’s overall strong performance during the quarter with soaring equity markets as the leading contributor,” said Mark Machin, president and CEO, CPP Investments.
He noted that pandemic-related challenges have resulted in greater collaboration within the organization, and added that “the long-term results are the most important for the fund and we are pleased to be sustaining double-digit 10-year returns.”
One factor that propelled markets late in 2020 was “a series of vaccine breakthroughs during the quarter, as well as the prospect of a recovery in the global economy,” the release said. However, it added, the weakening greenback against the Canadian dollar did offset some of the fund’s gains.
In a breakdown, the release showed that top holdings of the fund include public equities (31.3%, or $148.9 billion), private equities (25.1%, or $119.6 billion) and government bonds (21.5%, or $102.2 billion).