The Canada Pension Plan Investment Board (CPPIB) has reported that it earned a return of 1.30% in its latest fiscal year as inflation and rising interest rates led to a sharp downturn in both stock and fixed-income markets worldwide.
The CPPIB said its net assets stood at $570 billion as of March 31 this year, up 6% from $539 billion a year earlier.
The board, which manages Canada’s public pension investments, said the gain for its latest fiscal year reflected returns on investments in infrastructure and certain U.S.-dollar-denominated private equities.
A weaker Canadian dollar against the U.S. currency and other major currencies around the world also helped boost the CPPIB’s investment returns.
However, the board’s investment return was partially offset by declines in both equities and fixed income as inflation and interest rates weighed on both asset classes.
As of March 31, CPPIB’s investment portfolio included 33% private equities, 24% public equities, 12% fixed come, 13% credit investments, 9% real estate, and 9% infrastructure.
The pension plan’s 10-year annualized return now stands at 10%.
