Canada Pension Plan Investment Board, Toronto, said investments gained 2.1% in the quarter ended Dec. 31 as stock and bond markets rallied.
The return for the three months, the board's fiscal third quarter, was C$3.2 billion (US$3.19 billion), according to a statement Friday.
The value of Canada Pension Plan's assets rose to C$152.8 billion, up 0.3% from Sept. 30.
Canada's equity benchmark S&P/TSX Composite index rose 2.9% and the MSCI World index climbed 7.1% in the three-month period.
The board's results missed the 4.2% average increase of assets for Canadian pension funds in the three months, according to a Jan. 23 report by RBC Dexia Investor Services.
The fund includes investment earnings and contributions not needed to pay current pensions.