The Canada Pension Plan Investment Board’s assets returned 0.2 per cent during the second quarter of fiscal 2023, according to its latest quarterly report.
By Sept. 30, 2022, the investment organization’s net assets reached $529 billion, up from $523 billion at the end of June. About $5 billion was generated by net transfers, while the remainder was the result of investment returns.
During the first half of the year, the value of the CPPIB’s assets dropped by about four per cent — or $22 billion. Despite the modest gains made during the quarter, the investment organization’s assets are worth less than they were at the beginning of 2022.
In a press release, John Graham, president and chief investment officer of the CPPIB, said the fund’s quarterly result was stunted by broad declines in global equity and fixed income markets. “Our portfolio remains resilient despite inflationary pressures, increases in central bank rates and the continued impact of the war in Ukraine, which resulted in the continued decline in global financial markets during the quarter.”
However, the decline in value was offset by the strength of the U.S. dollar. Private equity, real estate and credit investments denominated in the currency benefited from foreign exchange gains. The CPPIB also saw positive returns on investments in energy and infrastructure. External investment managers also made net gains in fixed income, currencies and commodities.