The Canada Pension Plan Investment Board (CPP Investments) has published its third quarter fiscal 2023 results for the period ended December 31, 2022. The results show five and 10-year annualized net returns of 8.1 per cent and 10 per cent respectively in the combined base Canada Pension Plan (CPP) and additional CPP accounts.
CPP Investments says the funds ended the year, its third quarter, with net assets of $536-billion, up from $529-billion reported at the end of the previous quarter. The increase, broken down, was $10-billion in net income, less $3-billion in CPP payment 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,” they state.
They add that the most recent review published by the chief actuary shows the plan remains sustainable for the long term at current contribution rates.
For the nine months ended December 31, 2022, net returns were down 2.2 per cent. The fund’s net returns for the quarter were 1.9 per cent. The fund’s managers say gains were due to a rebound in public equity markets while private asset values remained flat. “Our active management strategy enabled us to outperform markets over the first nine months of the year,” said CPP Investments’ president and CEO, John Graham. “We expect market pressures to persist in 2023,”