Toronto-based Canada Pension Plan Investment Board, and its’ investment arm CPP Investments, increased its total assets in the second quarter of fiscal 2022, which ended on September 30, to $529 billion, compared to $523 billion at the end of Q1.
The $6 billion increase in net assets for the quarter consisted of $1 billion in net income and $5 billion in net transfers from the Canada Pension Plan (CPP).
The Fund, which includes the combination of the base CPP and additional CPP accounts, achieved 5– and 10-year annualized net returns of 8.5% and 10.1%, respectively.
For the quarter, the Fund returned 0.2%, Over the same period, the S&P/TSX index, a capitalization-weighted index designed to measure market activity of stocks listed on the Toronto Stock Exchange, fell by 2.2%.
For the six-month fiscal year-to-date period, the Fund’s net return was down 4%.
The Fund’s quarterly results were adversely affected by broad declines in global public and private equity markets and in fixed income markets; however, the decline in value was offset by gains in U.S. dollar-denominated private equity, real estate and credit investments—which benefitted from foreign exchange gains—and by positive returns on investments in energy and infrastructure.
The Fund also acquired a stake in Universal Investment , a leading third-party management company and fund administration service provider serving both institutional investors and asset managers across European fund markets.
The fund additionally completed $82 million worth co-investments alongside private equity sponsors during the quarter.
In terms of real asset investment activity, the Fund by $565 billion, to a total of $1.2 billion, and invested $975 million into European real estate. In addition, the fund invested another $125 million in funds investing in equity and sustainability focuses.