The Canada Pension Plan fund returned 2.5 per cent after all costs during the second quarter of fiscal 2018.
It ended the second quarter with net assets of $328.2 billion, up from $326.5 billion at the end of the first quarter. The $1.7 billion net increase in assets for the quarter consisted of $2.3 billion in net income after all Canada Pension Plan Investment Board costs, less $600 million in net CPP cash outflows.
The fund has increased by $11.5 billion for the fiscal year-to-date period ending Sept. 30, 2017. The rise consists of $8.1 billion in net income after CPPIB costs and $3.4 billion in net CPP cash inflows.
Read: CPP fund grows by $9.8B with ‘significant uplift’ from global equity
“Equities advanced internationally during the quarter moderated by negative Canadian fixed income and foreign currency returns,” said Mark Machin, president and chief executive officer at the Canada Pension Plan Investment Board.
“The fund delivered a modest return with contributions from all of our major investment programs as our teams pursued a number of select transactions setting the stage for added future growth. Our broadly diversified investment portfolio continues to generate strong long-term performance results for the Canada Pension Plan and its contributors and beneficiaries.”
Read: CPPIB reports 12% annual return
Investment highlights for the second quarter included:
- The acquisition of U.S. power generator Calpine Corp. with an investment of US$750 million;
- The investment of 900 million euros to acquire a 20 per cent minority interest in Gas Natural Fenosa, Spain’s largest gas distribution network; and
- The acquisition of a 45 per cent interest in Corrib natural gas field off the coast of Ireland.
Read: CPPIB to acquire Shell’s stake in Irish natural gas field
CPPIB’s dispositions of assets included:
- The sale of its 50 per cent ownership in Constitution Square, an office property in Ottawa; and
- The sale of all farmland assets owned by Agriculture Company of America.