CPPIB sees 5.6% return for first fiscal quarter

The Canada Pension Plan Investment Board posted a 5.6 per cent net return for its first 2021 fiscal quarter, which ended June 30, 2020.

The quarter saw the CPPIB’s net assets grow to $434.4 billion from the $409.6 billion it held at the end of its 2020 fiscal year, which ended March 31, 2020. The increase came from $1.9 billion in CPP contributions and $22.9 billion in net investment income. By comparison, the CPPIB had a difficult finish to its 2020 fiscal year, which saw a return of just 3.1 per cent, dragged down by the coronavirus-related market turbulence. Notably, looking at the 2019 calendar year before the pandemic, the fund saw a 12.6 per cent return.

Read: CPPIB posts 3.1% gains for fiscal 2020 after difficult final quarter

“While global financial markets experienced a strong rebound from March, significant uncertainty in health, social and economic conditions persists,” said Mark Machin, president and chief executive officer of the CPPIB, in a press release. “Amid this environment, CPP Investments delivered solid performance, while our investment teams were active in creating long-term value across our diversified programs.”

In particular, the release noted public equity markets bounced back into strong performance during the quarter, which bolstered returns. These were somewhat offset by the strengthening of the Canadian dollar against many major currencies. Also of note, inflows from CPP contributions were lower than usual, reflecting the coronavirus pandemic’s impact on employment across the country.

Read: U.S. shopping centres substantial headwind for Caisse in first half of 2020