CPP Investments quarterly loss, Digi Mart USA News: The Canada Pension Plan Fund recorded a net loss of $4.7 billion in the quarter ended September 30, closing the second quarter of fiscal 2027 with net assets of $866.2 billion, up from $863.6 billion at the end of the previous quarter.
Net transfers of $7.3 billion from the Canada Pension Plan outweighed the loss, producing a $2.6 billion increase for the quarter. The Fund returned negative 0.5 percent for the quarter and 8.8 percent on a 10-year annualized net basis.
Over the six-month fiscal year-to-date period, the Fund grew by $72.9 billion, on $55.6 billion in net income and $17.3 billion in net transfers, for a net return of 7.0 percent.
John Graham, president and CEO of CPP Investments, said in the results statement: “Higher bond yields weighed on fixed-income returns this quarter, while diversification across the portfolio helped offset some of that pressure.”
Public equities, private equity and real assets contributed gains, which CPP Investments attributed to resilient corporate earnings, momentum in AI-related sectors, strength in energy markets and sustained demand for infrastructure assets. Fixed-income losses more than offset those gains as higher government bond yields across developed markets weighed on bond prices amid persistent inflation concerns and expectations for rates to remain higher for longer.
The base CPP account ended the quarter with net assets of $771.7 billion, down from $773.4 billion, on $3.6 billion in net losses and $1.9 billion in net transfers. The additional CPP account rose to $94.5 billion from $90.2 billion, on $1.1 billion in net losses and $5.4 billion in net transfers.
CPP Investments said the additional CPP has carried a different market risk target and investment profile since its inception in 2019 and is expected to perform differently from the base CPP, with assets growing at a much faster rate because of its net contribution profile.
In its most recent triennial review, published in May 2026 as a revised report, the Office of the Chief Actuary of Canada reaffirmed that both the base and additional CPP remain sustainable over the long term at the legislated contribution rates as at December 31, 2024. The projections assume the base CPP account will earn an average annual real return of 4.05 percent over the 75-year period following that date, and the additional CPP account 3.53 percent.
The OCA is an independent federal body that evaluates the future costs of the CPP.
CPP Investments created Active Public Markets, a department combining its Active Equities and Capital Markets and Factor Investing teams, which will invest across public market asset classes using internal teams and external partners managed as a single integrated portfolio. Heather Tobin will lead it as senior managing director and global head.
Frank Ieraci, senior managing director and global head of Active Equities, is stepping back after nearly 20 years and will remain a senior advisor through to the end of the year.
Jon Webster, senior managing director and chief operating officer, is leaving after nearly five years; he joined in 2022 and was appointed COO in 2023.
During the quarter, CPP Investments launched the $50 billion Maple Fund with Brookfield Asset Management, structured on a 50/50 basis with up to $25 billion in equity capital from each organization over an initial five-year period.
