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Pension Funds

Canada Pension returns 1.8% for quarter

Canada Pension Plan, Ottawa, returned a nominal 1.8% net of fees in the quarter ended June 30, helping increase its total assets to C$366.6 billion ($277.7 billion), up 2.9% from three months earlier, according to the Canada Pension Plan Investment Board, Toronto, which manages the plan's assets.

The plan's investments returned an annualized nominal 12.3% for five years and 8% for 10 years, both as of June 30 and net of fees, the board said in a news release Friday. The board does not provide benchmarks for quarterly reports.

For the latest quarter, the first of CPP's fiscal year, C$6.6 billion was added through net investment returns while C$3.9 billion came from net contributions.

Mark Machin, board president and CEO, said in the release that private assets and global public equity helped drive returns in the latest quarter. CPPIB does not break out individual asset class returns by quarter.

As of June 30, CPPIB had an asset allocation of 37.7% public equity, 22.1% government fixed income, 23.3% real assets, 20.9% private equity, 6.8% credit, -4.1% cash and absolute-return strategies, and -6.77% external debt issuance. The negative balance in cash and absolute-return strategies comes from net financing through derivatives and repurchase agreements and the current net position of absolute-return strategies.