CPP Investments lifts Canada Pension Plan assets to $780.7 billion as long-term returns and sustainability projections remain ahead of target
CPP Investments has delivered more than $75bn in base CPP investment gains above actuarial expectations over the past three years, leaving the Canada Pension Plan Fund “substantially larger than projected” and reinforcing its long‑term funding position.
CPP Investments ended the third quarter of fiscal 2026 on December 31, 2025, with net assets of $780.7bn, up from $777.5bn the previous quarter.
The $3.2bn increase came from $4.0bn in net income, partly offset by $0.8bn in net CPP outflows.
For the quarter, the Fund returned 0.5 percent net; for the first nine months of the fiscal year, it returned 7.0 percent as assets rose by $66.3bn, driven by $51.3bn in net income and $15.0bn in net transfers from the CPP.
Over the longer term, the combined base CPP and additional CPP accounts delivered a 10‑year annualized net return of 8.4 percent.
Since CPP Investments began investing the Fund in 1999, cumulative net income has reached $543.4bn.
John Graham, president and chief executive officer of CPP Investments, said the quarter was marked by “slowing growth and escalating geopolitical tensions” but that the Fund remained “resilient” and guided by a long‑horizon perspective aimed at meeting obligations to current and future CPP beneficiaries.
The latest triennial review from the Office of the Chief Actuary of Canada, published in December 2025, reaffirmed that as of December 31, 2024, both the base and additional CPP remain sustainable over the long term at legislated contribution rates.
The Chief Actuary assumes that over the 75‑year period after December 31, 2024, the base CPP account will earn an average annual return of 4.05 percent above Canadian consumer price inflation, and the additional CPP account will earn an average annual real return of 3.53 percent.
Graham described the report as “an independent expert affirmation that the Canada Pension Plan remains financially sustainable until at least the end of the current century” and said it supports the “soundness of our long-term investment approach” to help underpin retirement incomes.
CPP Investments continues to target the maximum rate of return without undue risk of loss, while considering factors that affect CPP funding and daily liquidity needs.
It stresses that long‑term results, rather than short‑term fluctuations, are the most relevant measure for the intergenerational design of the plan.
The base CPP account ended the quarter with $705.0bn in net assets, down slightly from $706.0bn.
The $1.0bn drop reflected $3.8bn in net income offset by $4.8bn in net base CPP outflows.
The base CPP posted a 0.5 percent net return for the quarter and a 10‑year annualized net return of 8.5 percent.
On a nominal basis, its five‑year net return was 7.3 percent. Net real returns after expenses and inflation were 3.4 percent over five years and 5.6 percent over 10 years.
The additional CPP account grew to $75.7bn from $71.5bn, a $4.2bn gain consisting of $0.2bn in net income and $4.0bn in net transfers from the additional CPP.
It returned 0.3 percent net for the quarter and has delivered 6.1 percent annualized net since inception.
Its five‑year nominal net return was 4.4 percent, with net real returns of 0.6 percent over five years and 2.9 percent since inception.
CPP Investments emphasises that the additional CPP has a distinct legislative funding profile, contribution rate, market risk target and investment profile compared to the base CPP.
Because of this design and its net contribution profile, the additional CPP’s performance is expected to differ and its assets are expected to grow at a much faster rate than those of the base CPP account.
Public equities were the main driver of third‑quarter returns, with continued gains in developed markets, although gains were more muted than in recent quarters as optimism eased and pricing concerns increased.
Private investments, particularly in private equities, credit and infrastructure, also contributed positively, and external managers delivered steady performance.
Foreign exchange detracted from results, as a stronger Canadian dollar reduced the value of foreign assets in Canadian‑dollar terms.
CPP Investments continues to build a globally diversified portfolio that is deliberately less concentrated than public market indices, aiming to support long‑term resilience rather than short‑term index replication.
CPP Investments remained active across public and private markets.
In Capital Markets and Factor Investing, it completed eight co‑investments alongside external managers, committing about $1,180m to macro‑themed strategies, together with equity trades in discount‑to‑net asset value opportunities, financials and consumer discretionary.
In private markets, the fund made a series of notable commitments and deals, including a US$300m commitment to Green Equity Investors Side X, L.P. for large‑cap North American buyouts and an approximately US$600m co‑control investment in Boats Group alongside General Atlantic and Permira.
It also committed about $60m to Wealthsimple at a $10bn post‑money valuation and invested US$50m in Canadian AI firm Cohere and US$50m in Anthropic, a U.S. AI‑model developer.
Real assets activity included a definitive agreement with Stonepeak to acquire an indirect non‑controlling interest in Castrol for up to US$1.05bn.
It also included the launch of the Goodman European Data Centre Development Partnership, with an initial €1.1bn commitment from each partner, and a Canadian joint venture with Dream Industrial REIT and Dream Asset Management Corp backed by $1.0bn of equity to acquire 12 last‑mile industrial assets.
CPP Investments also completed the sale of its 49.87 percent stake in Transportadora de Gas del Peru S.A. to EIG for about US$820m in net proceeds and agreed to sell Cordelio Power to Pattern Energy Group in a share‑based deal that will raise its ownership stake in Pattern Energy, together with other institutional investors, to 69.1 percent on closing.
