Canada Pension Plan Investment Board's investment portfolio returned a net 5% for the quarter ended Sept. 30, the Toronto-based board announced in a news release Monday.
The C$456.7 billion ($348.7 billion) pension fund's portfolio returned an annualized net 9.6% and 10.5% for the five and 10 years ended Sept. 30, respectively.
The pension fund's assets increased C$22.3 billion during the second quarter of its fiscal year 2021 from C$434.4 billion as of June 30. The news release attributed the increase to C$21.6 billion in net income after all CPPIB costs and C$700 million in net contributions.
"(The board's) diversified fund performed well this quarter, generating strong returns. However, we continue to be cautious about the months ahead given the highly uncertain economic fallout of COVID-19 and its effect on markets," said Mark Machin, president and CEO, in the news release. "All of our investment departments generated positive returns this quarter. Our investment professionals continue to pursue opportunities that will bring value to the fund over the long term."
Individual asset class returns for the quarter were not disclosed.
As of Sept. 30, CPPIB's actual allocation was 31.4% public equities, 24.6% private equity, 21.5% real assets, 21.3% government bonds, 12.1% credit, -8.5% external debt issuance, and -2.4% cash and absolute-return strategies.
The negative allocation in cash and absolute-return strategies represents the net amount of financing through derivatives and repurchase agreements and the current net position from absolute-return strategies, the news release said.