Canada's largest pension fund grew its assets more than 18 per cent last year, approaching nearly $265 billion in assets.
The CPP Fund said Thursday it ended its 2015 fiscal year March 31 with net assets of $264.6 billion, up from $219.1 billion at the end of fiscal 2014.
The $45.5 billion increase in assets for the year included $40.6 billion in net investment income and $4.9 billion in net CPP contributions. The portfolio delivered a gross investment return of 18.3 per cent.
"The CPP Fund generated exceptional returns this year, achieving both the highest one-year return and annual investment income since our inception," said Mark Wiseman, president and CEO of the CPP Investment Board, the Toronto-based money manager which oversees the fund.
"More importantly, our 10-year return, a measure that better indicates how we seek to serve contributors and beneficiaries, reached 8.0 per cent on a net basis."
The pension fund said it benefited from growth in the stock market, bonds, private assets and real estate holdings. The fund's diversification across currencies also played a role in its returns, as the Canadian dollar fell against certain currencies, including the U.S. dollar.
"While any large increase helps foster public confidence in the sustainability of the fund, results can and will fluctuate in any given year," added Wiseman. "The Fund's horizon, size and funding allow us to accept more risk and invest differently than almost all other investors, including having a high tolerance for potential future negative shocks."
The CPP fund invests in stocks, bonds, private companies, real estate, infrastructure and other assets in Canada and around the world designed to generate and maximize long-term returns. The money manager invests the funds not needed by the CPP to pay current benefits on behalf of 18 million contributors and beneficiaries.
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It has been expanding its investments outside Canada – primarily in Australia, Britain, the United States and Asia – and is growing its presence in infrastructure, fast-growing businesses and real estate.
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CPP fund grows assets 18.3 per cent to $264.6 billion

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