The Canada Pension Plan Investment Board reported another intense period of performance, with net assets reaching $777.5 billion at the end of the second quarter of fiscal 2026. This represents a quarterly increase of $45.8 billion, compared to $731.7 billion in the previous quarter. The results were primarily driven by $39.8 billion in net income, supported by an additional $6 billion in net transfers from the Canada Pension Plan. The Fund also generated a 10-year annualized net return of 8.8% and recorded a quarterly net return of 5.4%.
The performance for the six-month fiscal year-to-date period resulted in a $63.1 billion increase in assets, consisting of $47.3 billion in net income and $15.8 billion in net transfers from the CPP. The net return during this timeframe was 6.5%. Since its inception in 1999 through the end of the second quarter of fiscal 2026, CPP Investments has contributed $539.4 billion in cumulative net income to the Fund.
Public equity investments were the most significant contributors to growth as global markets continued to benefit from optimism surrounding artificial intelligence, sustained corporate earnings, and expectations of monetary easing in developed economies. Private asset performance remained strong across credit, private equity, infrastructure, and energy. Foreign exchange movements, particularly a stronger U.S. dollar, further supported quarterly gains. The Fund continued to benefit from its diversified global portfolio, which is structured to be less concentrated than public market indices, thereby enhancing resilience over long periods.
Net assets in the base CPP account increased to $706 billion, up from $668 billion in the previous quarter, reflecting $37 billion in net income and $1 billion in net transfers. The account delivered a 5.5% net return for the quarter and an annualized ten-year net return of 8.9%. The additional CPP account ended the quarter with $71.5 billion in net assets, up from $63.7 billion, driven by $2.8 billion in net income and $5 billion in net transfers. The account generated a 4.2% net return for the quarter and has produced a 6.3% annualized net return since inception. The structure of the additional CPP results in different market risk targets and investment profiles compared to the base CPP, with asset growth expected to continue at a comparatively faster rate.
The Office of the Chief Actuary reaffirmed in its most recent triennial review that both the base and additional CPP remain financially sustainable over the long term at legislated contribution rates. Long-term return assumptions remain 3.69% above Canadian consumer price inflation for the base CPP and 3.27% for the additional CPP. The Fund continues to operate to maximize long-term returns while minimizing undue risk, taking into account the multi-generational nature of the CPP.
During the quarter, CPP Investments announced new Board appointments, including Gillian Denham and Stephanie Coyles, as well as the reappointment of Barry Perry for an additional three-year term. The organization was also recognized for its transparency, ranking first among Canadian peers and second globally in the 2025 Global Pension Transparency Benchmark. The CPP Investments Insights Institute launched a new series, Mapping Canadian Capital, offering detailed perspectives on Canadian investments within the portfolio.
The quarter also featured significant investment activity across public and private markets. Capital markets and factor investing teams completed eleven co-investments totaling approximately C$875 million. Credit investments included commitments to support KKR’s acquisition of a European consumer lender, financing for cold storage operator Emergent Cold Latin America, and a construction loan for a hyperscale data centre expansion in Ontario.
The private equity program recorded a high volume of activity through commitments and direct investments, including a majority investment in OneDigital valued in excess of US$7 billion, commitments to Great Hill Equity Partners IX, JMI Equity Fund XII, TPG Capital Asia funds, and multiple direct investments in technology, health care, housing finance and business services.
Real assets transactions included a US$750 million commitment to KKR Global Infrastructure Investors V, an agreement to acquire a 13% indirect stake in Sempra Infrastructure Partners for approximately US$3 billion, additional investment in Caturus and activity across data centre development, real estate joint ventures, and strategic asset sales in the U.K., India, and Peru.
Following the end of the quarter, CPP Investments continued to deploy capital through commitments to FNZ Group, Ohana Credit Fund III, ArcLight Infrastructure Partners VIII, Wealthsimple, Jeppesen, TA Associates Fund XII, and Cohere, along with agreements to increase ownership in FCC Servicios Medio Ambiente Holding and AlphaGen.
CPP Investments manages the Fund in the best interest of more than 22 million CPP contributors and beneficiaries. Operating independently from governments, the organization invests globally across public equities, private equity, real assets, infrastructure, fixed income, and alternatives. As of September 30, 2025, the Fund had a total of $777.5 billion.
KEY QUOTES
“CPP Investments delivered good results this quarter. The Fund continues to benefit from our diversified approach and from owning high-quality assets around the world. At the same time, many markets are pricing assets at robust levels. In this environment, we remain disciplined in line with our purpose to help pay pensions not only today, but for many decades to come, through many different economic cycles.”
John Graham, President & Chief Executive Officer, CPP Investments
