The Canada Pension Plan fund’s net assets increased to $326.5 billion at the end of the first quarter of fiscal 2018, compared to $316.7 billion at the end of fiscal 2017.
The $9.8-billion rise in assets for the quarter ended June 30, 2017, consisted of $5.7 billion in net income after all Canada Pension Plan Investment Board costs and $4.1 billion in net CPP contributions. The fund’s portfolio also returned 1.8 per cent, net of all costs, for the quarter.
Read: CPP fund increases by $13.2B with ‘solid gains’ during the quarter
“Each major CPPIB investment program contributed to first-quarter results,” said Mark Machin, president and chief executive officer of the Canada Pension Plan Investment Board, in a news release. “Global equity markets produced a significant uplift and gains from fixed income improved.
“Meanwhile, the strengthening Canadian dollar against most major currencies applied downward pressure, a trend that accelerated in the first half of the current quarter.”
Some investment highlights from the quarter include:
- The acquisition, alongside Baring Private Equity Asia, of all outstanding shares of international private school operator Nord Anglia Education Inc. for US$4.3 billion.
Read: CPPIB invests in private schools
- The commitment of US$1 billion to partner with Encino Energy to form Encino Acquisition Partners, which will focus on oil and gas opportunities in the United States.
Read: CPPIB commits equity to U.S. oil and gas acquisition company
- The investment of US$141 million in debt financing support to Golden Gate Capital’s acquisition of Express Oil Change and Tire Engineers, a U.S. automotive service provider with more than 300 locations across 15 states.
- An agreement to acquire 100 per cent of Parkway Inc., a Houston-based real estate investment trust, for US$1.2 billion.
Read: CPPIB to buy Houston office portfolio for $1.6B
- The formation of a joint venture with IndoSpace, which will focus on acquiring and developing modern logistics facilities in India.
Read: CPPIB invests US$500M in Indian industrial real estate
- The acquisition of the 30 Bay St. site in Toronto, alongside Oxford Properties Group. The CPPIB and Oxford will each own a 50 per cent stake.
- The formation of a strategic investment platform with the Phoenix Mills Ltd. to develop, own and operate retail-led mixed-use developments across India.