Canada Pension Has 3.5% Quarterly Return on Equities Gains
(Bloomberg) -- Canada Pension Plan Investment Board, the country’s largest pension fund, returned 3.5% in the quarter ended June 30, boosted by gains in public and private equities.
The fund’s growth to C$519.6 billion ($415 billion) was also attributed to advances in real assets and credit investments, CPPIB said in a statement on Friday, though a stronger Canadian dollar offset some gains. CPPIB holds C$282.5 billion in public and private equities.
“CPP Investments delivered solid results to open the fiscal year, vaulting the Fund well beyond the half-trillion mark in assets,” Chief Executive Officer John Graham said in the statement. “Diversification from active management continues to drive long-term performance as strong 10-year returns help bolster the sustainability of the fund.”
- Ten-year and five-year annualized nominal returns were 11.1% and 11.4%, respectively, net of costs
- CPPIB holds C$107 billion in real assets and C$73.3 billion in credit
- Graham said in May that the pension fund is bullish on U.S. consumer credit and sees good opportunities in emerging markets, despite the devastating toll the Covid-19 pandemic has taken on leading countries such as Brazil and India
- U.S. households are flush with savings and central banks will continue to prime the economy with easy money for a while, which is positive for returns in consumer-oriented investments, he said
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