Net assets of the Canada Pension Plan (CPP) fund surpassed $400 billion in the quarter ended June 30, 2019.
The Canada Pension Plan Investment Board (CPPIB) announced in a release on Wednesday that the CPP fund had reached $400.6 billion at the end of the first quarter of fiscal 2020, up from $392 billion in Q4 2019.
The $8.6-billion increase included $4.1 billion in net income after CPPIB costs, and $4.5 billion in net CPP contributions. The fund returned 1.1% net of all costs during the quarter.
CPPIB said the fund achieved 10-year and five-year annualized net nominal returns of 10.5%.
“CPPIB’s investment programs performed well in the first quarter, achieving solid net income in local-dollar terms,” CPPIB president and CEO Mark Machin said in the release.
“At the same time, the strengthening of the Canadian dollar against all major currencies in June dampened our returns overall, as the market responded to lower interest rate expectations in the U.S. and Europe.”
CPPIB said the Total Portfolio Management department was the fund’s top contributor, thanks in part to gains in fixed-income investments. The Private Equities and Active Equities departments also delivered positive results.
Highlights from the quarter included the CPPIB’s participation in a consortium to purchase Merlin Entertainments plc, the owner of Legoland, for 455 pence per share, and investing $200 million for an ownership stake in specialty food company Premium Brands Holdings Corp.