(Toronto) The Canada Pension Plan Investment Board earned a net return of 1.3% in its last fiscal year.
CPP Investments reports that it ended the fiscal year on March 31 with net assets of $570 billion, compared to $539 billion at the end of fiscal 2022, due to investment gains of $8 billion combined with $23 billion of Canada Pension Plan (CPP) net transfers.
In a press release, CPP Investments explains that inflation and rising interest rates have weighed on stock markets and fixed-income securities.
The Board explains that in fiscal year 2023, it received higher than normal net cash flows from the Plan due to high employment rates, an increase in the maximum annual earnings limit benefits, an increase in additional CPP contributions and a lump sum payment in the fourth quarter due to forecast adjustments made by the CPP.
Its last year’s gain also reflects some U.S. dollar-denominated private equity and credit assets, which benefited from exchange rates.
CPPIB adds that external investment managers used quantitative, equity and fixed income trading strategies which also contributed positively to results.
Last December, the Office of the Chief Actuary of Canada confirmed that as of December 31, 2021, the base CPP and the additional CPP remain sustainable over the long term at legislated contribution rates.