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Pension Funds

Canada Pension Plan returns 11.6% for fiscal year

Canada Pension Plan, Ottawa, returned a net 11.6% for the 12 months ended March 31, the plan's fiscal year, helping to increase its overall assets to C$356.1 billion ($276.2 billion), according to the annual report of the CPP Investment Board, Toronto, which manages the plan's assets.

CPP outperformed its 9.8% custom benchmark return for fiscal 2018 but was down compared to its net 11.8% investment return in the 12 months ended March 31, 2017.

Assets increased 12.4% from the previous fiscal year, with C$36.7 billion in net investment return complemented by C$2.7 billion in net contributions.

The plan had a five-year nominal rate of return of 12.1% and a 10-year nominal return of 8%. Both returns are annualized. No benchmark returns were provided.

Emerging markets private equity was the top performer for the fiscal year, at 19.5%, followed by emerging markets public equity at 18.6%; foreign private equity, 16%; infrastructure, 15.2%; international public equity, 11%; and real estate, 9.4%.

Credit returned 6.9%; non-marketable government bonds, 2.7%; Canadian public equity, 2.2%; Canadian private equity, 1.8%; and marketable government bonds, 1.6%.

CPP's asset allocation as of March 31 was 38.8% public equity — made up of 29% foreign, 7.4% emerging markets and 2.4% Canadian; 21.6% government bonds — made up of 15% non-marketable and 6.6% were marketable; 20.3% private equity — made up of 17.3% foreign, 2.7% emerging markets and 0.3% Canadian; 12.9% real estate; 8% infrastructure; 6.3% credit; and the remainder in cash, absolute return, external debt issuance and other investments.

CPPIB's annual report is available on the pension fund's website.