CPP Investments’ return in fiscal 2026 fell short of the 13.2 per cent generated by its benchmark portfolio. (Credit: Jeenah Moon/Bloomberg)
The Canada Pension Plan Investment Board posted a net return of 7.8 per cent in the fiscal year ended March 2026, with the fund growing to $793.3 billion.
The $78.9 billion increase in net assets in fiscal 2026 consisted of $56.9 billion in net income and $22 billion in net transfers from the Canada Pension Plan (CPP).
Public equities, particularly in the United States, drove the investment performance, while energy and infrastructure investments and steady gains in credit also contributed meaningfully, said John Graham, chief executive of CPP Investments.
These gains were partially offset by foreign exchange movements, driven by the depreciation of the U.S. dollar against major currencies including the Canadian dollar, and by losses in government bonds as market expectations for major central bank interest policies shifted, he said.
Conflict in the Middle East that began near the end of the CPP Investments’ fiscal year rocked global equities markets and stoked global inflation. In the 2025 calendar year, CPP Investments’ net return was 7.7 per cent.
CPP Investments’ return in fiscal 2026 fell short of the 13.2 per cent generated by its benchmark portfolio, which the pension management organization said is heavily influenced by a concentration in public equities and particularly exposure to large-cap technology and communication services companies tied to artificial intelligence.
However, the fund’s 10-year return outperformed the aggregated benchmark portfolios, generating 0.7 per cent “value add” per year, net of costs.
At the end of the fiscal year in March 2026, 48 per cent of the fund’s assets were in the United States, up from 47 per cent a year ago, and a steady 12 per cent of the portfolio was invested in Canada.
Graham said the fund’s strong performance in a year of geopolitical uncertainty, market volatility and currency movements demonstrated the strength of the fund’s diversified portfolio and global reach, with a 10-year annualized net return is 8.8 per cent.
“What matters most for a pension fund serving generations of Canadians is long-term performance, and over the past decade our investment programs have contributed positively to the Fund’s returns,” Graham said.
“Through disciplined decision-making and global diversification, we have earned $549 billion in cumulative net income since we started investing more than 25 years ago, helping us protect and grow the fund while building resilience through changing market conditions.”
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