The investment portfolio for the Canada Pension Plan Investment Board, Toronto, delivered a net return of 7.1% for the nine-month period ended Dec. 31, the fund said in a news release Friday.
The quarter ended Dec. 31 represented the third quarter of the pension fund's fiscal year. The fund returned a net 3.6% in the quarter.
The pension fund's assets increased C$10.9 billion ($8.3 billion) to C$420.4 billion over the quarter ended Dec. 31. Over the nine-month period ended Dec. 31, the pension fund increased by C$28.4 billion in assets.
The quarterly increase consisted of C$14.5 billion in net income after all CPPIB costs, less C$3.6 billion in net CPP cash outflows. The nine-month increase consisted of C$27.9 billion in net income after all CPPIB costs, plus C$500 million in net CPP cash inflows, the news release said.
As of Dec. 31, CPPIB had an asset allocation of 31.1% fixed income, 30.7% public equity, 24.9% private equity, 22.8% real assets, -1.8% cash and absolute-return strategies, and -7.7% external debt issuance.
The negative balance 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.
CPPIB achieved annualized net nominal returns of 10.4% for both the five-year and 10-year periods ended Dec. 31.