Canada Pension Plan, Ottawa, returned a gross 1.6% for the quarter ended June 30.
The return for the plan’s fiscal first quarter was below the 3% return of Canadian defined benefit plans in the RBC Investor & Treasury Services universe for the three months ended June 30.
Canada Pension Plan Investment Board, Toronto, which manages the plan’s assets, said Thursday that investment returns added C$3.4 billion (US$3.1 billion) to plan assets, helping increase total assets 3.5% to C$226.8 billion as of June 30. An additional C$4.3 billion came from contributions.
The plan’s investments returned an annualized 8.5% over the five years ended June 30 and an annualized 5.4% for 10 years.
Mark Wiseman, board president and CEO, said in a news release that all of the plan’s asset classes had positive returns in the quarter. The board does not provide quarterly returns for each asset class.
Separately, the board on Thursday said it’s committing an additional US$500 million to a joint venture with real estate investment manager Goodman Group that invests in U.S. warehouses.
The added commitment will raise CPPIB’s overall allocation to the Goodman North American Partnership joint venture to US$900 million, or 45% of the joint venture.
The joint venture targets warehouses in California, New Jersey and Pennsylvania.
CPPIB had 11.6% of assets invested in real estate as of March 31, according to the board’s website.