Canada Pension Plan Investment Board ended its third quarter of fiscal 2022 on December 31, 2021, with net assets of $550.4 billion, up from $541.5 billion at the end of the previous quarter.
The $8.9-billion increase in net assets for the quarter consisted of $13 billion in net income less $4.1 billion in net Canada Pension Plan (CPP) outflows. CPP Investments routinely receives more CPP contributions than required to pay benefits during the first part of the calendar year, partially offset by benefit payments exceeding contributions in the final months of the year.
The Fund achieved five-year and 10-year annualized net returns of 11.7% and 11.6%, respectively. For the quarter, the Fund returned 2.4%.
Fund gets solid growth
"The Fund experienced solid growth this quarter largely due to healthy gains from real assets and equity-based investments. Our double-digit Fund performance over the long term continues as we brace for uncertain markets from a position of strength," said John Graham, president and Chief Executive Officer. "Our broadly diversified portfolio with investments in infrastructure and real estate is reasonably positioned to weather inflationary pressures."
Every three years, the Office of the Chief Actuary of Canada conducts an independent review on the sustainability of the CPP over the next 75 years. In the most recent triennial review published in December 2019, it was reaffirmed that as of December 31, 2018, both the base and additional CPP continue to be sustainable over the 75-year projection period at the legislated contribution rates.
CPP Investments continues to build a portfolio designed to achieve a maximum rate of return without undue risk of loss, taking into account the factors that may affect the funding of the CPP and the CPP's ability to meet its financial obligations.