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Canada Pension Plan surpasses C$300 billion in assets on 4.75% quarterly return

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Canada Pension Plan, Ottawa, topped C$300 billion in assets in the third quarter, aided by a 4.75% net return.

The plan had C$300.5 billion ($229.1 billion) in assets as of Sept. 30, up 4.6% from three months earlier, according to a news release from the Canada Pension Plan Investment Board, Toronto, which manages the plan’s assets.

Net investment income for the quarter was C$13.6 billion, offset by C$400 million in cash outflows.

CPP returned a net 1.45% in the previous quarter.

For the five years ended Sept. 30, the pension fund's investments had a nominal return of 12% and for 10 years, 7.3%. Both returns are annualized.

CPP slightly increased its allocations to public and private equity, as well as infrastructure, in the third quarter. Its asset allocation as of Sept. 30 was 34.5% public equities, 24.2% fixed income, 21% private equity, 12.8% real estate and 7.5% infrastructure. In the quarter ended June 30, 33.2% was in public equities, 25.9% in fixed income, 20.8% in private equity, 12.9% in real estate and 7.2% in infrastructure.

Mark Machin, investment board president and CEO, said in the release that “solid gains” in public and private markets spurred the third-quarter returns. He did not elaborate. The board does not release quarterly returns by asset class.