TORONTO — The Canada Pension Plan Investment Board reported a record gain on its investments for its latest fiscal year as its net assets climbed to $497.2 billion.
The investment manager says the fund earned 20.4 per cent net of all costs, the highest return since its inception, for its 2021 fiscal year that ended March 31.
The result compared with a return of 3.1 per cent for its 2020 fiscal year which ended with net assets of $407.3 billion.
CPP Investments CEO John Graham says the fund performed exceptionally well in fiscal 2021, as it capitalized on improving global equity markets following the steep declines at the end of fiscal 2020.
“The fiscal year was bookended by extremes, with markets reaching new record highs following the significant lowsjust 12 months earlier,” Graham said in a statement.
Graham, previously CPP Investment’s global head of credit investments, replaced Mark Machin as chief executive officer in February.
Machin resigned after he disclosed in a memo to staff that he travelled to the United Arab Emirates, where he received a COVID-19 vaccination.
CPP Investments said all six of its departments showed positive performance over the 12-month period ended March 31, but some gains were offset by foreign exchange losses due to the Canadian dollar’s strength compared with the U.S. dollar.
Under reforms introduced in recent years, CPP Investments has a base account that totalled $490.9 billion as of March 31, and a supplementary account with $6.3 billion.
CPP Investments is an independent fund manager for the Canada Pension Plan, which covers employees in most parts of Canada except for Quebec, which has its own provincial plan.
This report by The Canadian Press was first published May 20, 2021.