Canada Pension Plan Delivers 8.9% Return For Fiscal 2018

Good news for working Canadians.

The Canada Pension Plan Investment Board has reported an 8.9% net return for its most recent financial year.

The Toronto-based investment manager of the Canada Pension Plan (CPP) said its CPP Fund had $392.0 billion of net assets as of March 31, the end of the federal government’s 2018 fiscal year. The fiscal fourth quarter also showed a recovery from a weak return of only 1.1% in the third quarter that was affected by a general downturn in global stock markets last December.

The Canada Pension Plan Investment Board’s five-year real rate of return, which adjusts for inflation, was 8.9% as of March 31 while the 10-year real rate of return was 9.2%. Those returns are ahead of what the Chief Actuary of Canada has determined to be necessary to sustain the Canada Pension Plan to at least 2090.

"CPPIB continues to deliver strong absolute and relative returns, and our robust 10-year performance demonstrates our long-term contribution to the sustainability of the CPP," said Mark Machin, CPPIB President and Chief Executive Officer in a written statement about the results. "We have gradually built a diversified, global investment platform and focused on executing our multi-year strategy — these are key drivers of our financial performance and our future success."