CPP investment fund grows to $192.8 billion, with 1.8 per cent return in Q3

TORONTO – The Canadian Pension Plan Investment Board earned a 1.8 per cent return on investment in the second quarter, as it saw gains in foreign markets and made several significant investments abroad.

CPPIB says it had net assets of $192.8 billion at Sept. 30, up from $188.9 billion at the end of the previous quarter.

The gain included $3.3 billion in net investment income and $600 million in net CPP contributions from Canadian employees and employers.

Some of the investments made during this quarter included US$6 billion for a 50 per cent stake in luxury U.S. retailer Neiman Marcus Group LTD Inc.; $170 million for a 24 per cent interest in Calgary-based oil and gas producer TORC Oil and Gas Ltd. and $480 million for a 27.6 per cent interest in Brazilian real estate company Aliansce Shopping Centers S.A.

“Domestic and foreign equity markets, and gains in each of our active investment programs, contributed to the increase in the CPP Fund during the quarter. Overall, investment returns were consistent with the expected performance of a balanced portfolio,” Mark Wiseman, president and CEO of the CPP Investment Board said in a statement.

Wiseman said the fund manager will continue to “diversify the portfolio and during the reporting period we made significant investments in eight different countries.”

The CPP Investment Board, one of the world’s largest pension funds, invests money not needed by the Canada Pension Plan to pay benefits for current retired contributors.