Canada Pension Plan records 7.8% return

Strong performance in stocks, energy and infrastructure investments yielded the most.

Canada Pension Plan Investment Board recorded a 7.8% return in its most recent fiscal year, fuelled by stocks gains and data centre investments.

According to the fund's latest results, the returns facilitated a $78.9 billion increase in net assets in fiscal 2026, hitting C$793.3 billion ($576.2 billion). The increase consisted of $56.9 billion in net income and $22 billion in net transfers from the Canada Pension Plan (CPP).

"Fiscal 2026 was a strong year for CPP Investments," said CEO John Graham, "[despite] geopolitical uncertainty, market volatility and currency movements."

Graham attributed the solid performance to strength in public equities, particularly in the US, led by information technology and communication services, as well as investments in real energy and infrastructure assets, and steady gains in credit.

However, he pointed out that these gains were hampered by foreign exchange movements, driven by the depreciation of the US dollar against major currencies including the Canadian dollar, and by losses in government bonds as market expectations for major central bank interest policies shifted.

Graham also said the fund was holding stead despite new inflation fears.

“Longer-term inflation expectations have not become unanchored, and they still are in the target range,” he said. “We’re seeing inflation due to this energy shock in the market, but we haven’t changed a lot of our long-term perspective on asset allocation at this time, so we haven’t made any dramatic changes … but it’s something we’re watching.”

CPP Investments’ benchmark portfolio generated 13.2% returns in fiscal 2026, above the fund's performance. However, the fund attributed this difference to concentration in public equitieis and particularly exposure to large-cap tech and communication services companies tied to AI.

At the end of the fiscal year, 36% of the fund’s assets were allocated to public equities. Real assets including infrastructure and real estate accounted for 20% of the fund, while 22% was allocated to private equity. Government bonds, at 13%, and credit, at 9%, made up the balance.

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