The Canada Pension Plan Investment Board is reporting net assets of $523 billion for the first quarter of fiscal 2023, down from $539 billion at the end of the previous quarter.
The $16 billion decrease consisted of a net loss of $23 billion and $7 billion in net transfers from the Canada Pension Plan, according to a press release.
The CPP fund returned negative 4.2 per cent for the quarter, driven by losses in public equity strategies due to the broad decline in global equity markets, along with modest losses in private equity, credit and real estate, noted the release. And while the fund also experienced losses in fixed income due to higher interest rates, these losses were offset by foreign exchange gains of $3.1 billion as the Canadian dollar weakened against the U.S. dollar.
“Financial markets experienced the most challenging first six months of the year in the last half century and the fund’s first fiscal quarter was not immune to such widespread decline,” said John Graham, president and chief executive officer of the CPPIB, in the release.
“However, our active management strategy — diversified across asset classes and geographies — moderated the impact on the fund, preserving investment value. The uncertain business and investment conditions we noted in the previous quarter continue and we expect to see this turbulence persist throughout the fiscal year.”