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Canada Pension Plan Underperforms With 8% Return

The Canada Pension Plan Investment Board (CPPIB) earned an 8% return for its latest fiscal year ended March 31, trailing the performance of the broader market.

The pension plan’s return of 8% was less than the 10% gain in Canada’s benchmark Toronto Stock Exchange over the same period, according to market data.

The Canada Pension Plan’s return during its latest fiscal year also trailed a nearly 30% return in the benchmark S&P 500 stock index in the neighbouring U.S.

The Canada Pension Plan Investment Board acknowledged that it fell short of its benchmark reference portfolios, which posted a return of 20% for the year, lifted by U.S. technology stocks.

Despite its underperformance, the Canada Pension Plan Investment Board said its return was due to gains in its private equity portfolio, as well as investments in infrastructure and energy.

However, the annual return was dampened by weakness in emerging markets and lower performance of its real estate assets, noted the investment board.

The Canada Pension Plan, which funds the country’s public pension system, had net assets of $632.3 billion on March 31 of this year, up 10% from $570 billion a year earlier.