CPP Investments Net Assets Total $731.7 Billion at First Quarter Fiscal 2026
All figures in Canadian dollars unless otherwise noted
Highlights:
Net assets increase by $17.3 billion
10-year net return of 8.4%
Added $500 billion in cumulative net income since inception
TORONTO, Aug. 14, 2025 /CNW/ - Canada Pension Plan Investment Board (CPP Investments) ended its first quarter of fiscal 2026 on June 30, 2025, with net assets of $731.7 billion, compared to $714.4 billion at the end of the previous quarter.
The $17.3 billion increase in net assets for the quarter consisted of $7.5 billion in net income and $9.8 billion in net transfers from the Canada Pension Plan (CPP). CPP Investments routinely receives more CPP contributions than required to pay benefits during the first part of the calendar year, partially offset by benefit payments exceeding contributions in the final months of the year.
The Fund, composed of the base CPP and additional CPP accounts, generated a 10-year annualized net return of 8.4%. For the quarter, the Fund's net return was 1.0%. Since CPP Investments first started investing the Fund in 1999, and including the first quarter of fiscal 2026, it has contributed $499.6 billion in cumulative net income.
"Shifting trade dynamics and broader geopolitical uncertainty fueled renewed volatility in global markets during the first quarter of our fiscal year," said John Graham, President & CEO. "Through these events, the Fund remained resilient, supported by our diversified investment strategy, including broad geographic exposure that helps offset shifts in the employment, wage and demographic trends that determine CPP contributions. We remain focused on creating long-term value for the benefit of CPP contributors and beneficiaries."
The Fund delivered positive results in the first quarter, despite considerable market volatility. While markets declined early in the period, public equities rebounded by quarter end, contributing to overall Fund performance. Energy assets and strong results from our external manager programs also contributed positively to returns. These gains were largely offset by the weakening of the U.S. dollar relative to the Canadian dollar amid tariff-related uncertainty. While foreign exchange fluctuations may impact returns in the short term, maintaining a well-diversified global currency composition helps to mitigate overall return volatility over longer time horizons.
Performance of the Base and Additional CPP Accounts
The base CPP account ended its first quarter of fiscal 2026 on June 30, 2025, with net assets of $668.0 billion, compared to $655.8 billion at the end of the previous quarter. The $12.2 billion increase in net assets consisted of $7.3 billion in net income and $4.9 billion in net transfers from the base CPP. The base CPP account's net return for the quarter was 1.1% and the 10-year annualized net return was 8.5%.
The additional CPP account ended its first quarter of fiscal 2026 on June 30, 2025, with net assets of $63.7 billion, compared to $58.6 billion at the end of the previous quarter. The $5.1 billion increase in assets consisted of $0.2 billion in net income and $4.9 billion in net transfers from the additional CPP. The additional CPP account's net return for the quarter was 0.2% and the annualized net return since inception was 5.9%.
The additional CPP was designed with a different legislative funding profile and contribution rate compared to the base CPP. Given the differences in its design, the additional CPP has had a different market risk target and investment profile since its inception in 2019. As a result of these differences, we expect the performance of the additional CPP to generally differ from that of the base CPP.
Furthermore, due to the differences in its net contribution profile, the additional CPP account's assets are also expected to grow at a much faster rate than those in the base CPP account.
CPP Investments Net Nominal Returns1
(For the period ended June 30, 2025)
Base CPP
Five-Year
8.1 %
10-Year
8.5 %
Additional CPP
Five-Year
4.7 %
Since Inception
5.9 %
1 After CPP Investments expenses.
Long-Term Financial Sustainability
Every three years, the Office of the Chief Actuary of Canada, an independent federal body that provides checks and balances on the future costs of the CPP, evaluates the financial sustainability of the CPP over a long period. In the most recent triennial review published in December 2022, the Chief Actuary reaffirmed that, as at December 31, 2021, both the base and additional CPP continue to be sustainable over the long term at the legislated contribution rates.
The Chief Actuary's projections are based on the assumption that, over the 75 years following 2021, the base CPP account will earn an average annual rate of return of 3.69% above the rate of Canadian consumer price inflation. The ...
