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Pension Funds

Canada Pension Plan posts 0.7% return in third quarter

Canada Pension Plan, Ottawa, returned a net 0.7% on it investments in the third quarter, bringing its overall assets to C$328.2 billion ($263.5 billion).

The plan's returns were down from the net 1.8% reported in the second quarter, according to a news release from the Canada Pension Plan Investment Board, Toronto, which oversees the plan's assets.

Overall assets were up 0.5% from the second quarter with a net C$1.7 billion increase in assets — C$2.3 billion in net income partially offset by C$600 million in cash outflows.

As of Sept. 30, CPP's net nominal annualized returns were 11.8% for five years and 6.9% for 10 years.

Global equity returns in the third quarter were tempered by negative fixed-income returns and a stronger Canadian dollar impacting foreign currency returns, Mark Machin, board 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 39.8% public equities, 25.8% fixed income, 18.6% private equity, 12.5% real estate, and the rest in infrastructure, credit and absolute return.

As of June 30, CPP's allocation was 38.9% public equities, 26.7% fixed income, 18.3% private equity, 12.6% real estate, and the remainder in infrastructure, credit and absolute-return strategies.