Canada Pension Plan, Ottawa, gained a net 1.55% on its investments in the quarter ended Sept. 30.
The investment return drove all but C$100 million ($76.4 million) of the C$4.3 billion increase in assets for the pension fund, whose assets are managed by the Canada Pension Plan Investment Board, Toronto. The plan's assets rose 3.2% to C$272.9 billion as of Sept. 30. The C$100 million came from net contributions.
The board returned an annualized nominal rate of return of 11.6% for the five years ended Sept. 30, and an annualized nominal 7.3% return for 10 years as of the same date.
Mark Wiseman, board president and CEO, said the board's diversified investments helped it weather “significant declines across all major global equity markets and mixed results in fixed-income markets this quarter,” according to a CPP news release.
In the quarter ended Sept. 30, allocations increased for private equity, real estate and infrastructure. Private equity rose to 20.5% of total assets, from 17.7%; real estate to 12.6% from 11.4%; and infrastructure to 7.1% from 5.6%.
Public equity fell to 30.4% from 31.8%, and fixed income dropped to 29.4% from 33.5%.
The board does not provide quarterly returns for each asset class.
During the latest quarter, the board's CPPIB Credit Investments subsidiary closed on its acquisition of General Electric Co.'s Antares Capital private equity loan unit for $12 billion. Of that, $3.85 billion came from an equity commitment by the board, with the remainder being debt assumed by Antares management.