According to the fund, the Office of the Chief Actuary confirmed both the base and additional CPP remain financially sustainable over the next 75 years at current contribution rates
Canada Pension Plan Investment Board (CPP Investments), investment manager of the Canada Pension Plan (CPP), has released financial results for its 2026 fiscal year, reporting a $17.3 billion increase in net assets during the first quarter, bringing total assets under management to $731.7 billion as of June 30, 2025.
CPPIB said the quarterly growth was driven by $7.5 billion in net income and $9.8 billion in net transfers from the Canada Pension Plan. The net asset figure marks a notable increase from $714.4 billion in the prior quarter and underscores CPP Investments' capacity to maintain steady performance amid a volatile global market backdrop.
Additionally, the Canadian pension fund generated a 1.0 per cent net return in the quarter and continues to deliver strong long-term results, with a 10-year annualized net return of 8.4 per cent. Since its inception in 1999, the organization has added just under $500 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 and CEO of CPP Investments, in a release on Thursday.
“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," he added.
Despite a choppy market environment early in the quarter, public equities rebounded by the end of June. CPPIB also saw solid performance from its external manager programs and energy holdings. These gains were partially offset by currency headwinds, as the U.S. dollar weakened against the Canadian dollar amid tariff-related concerns. Management emphasized that currency diversification remains key to reducing long-term volatility.
The base CPP account closed the quarter with $668.0 billion in net assets, up from $655.8 billion, fueled by $7.3 billion in investment income and $4.9 billion in net transfers. It posted a quarterly net return of 1.1 per cent and its 10-year annualized return stands at 8.5 per cent.
Meanwhile, the additional CPP account reached $63.7 billion, rising from $58.6 billion. However, performance was modest with just $0.2 billion in net income and a 0.2 per cent return for the quarter. Since its 2019 inception, the additional CPP has returned an annualized 5.9 per cent.
CPP Investments noted the additional CPP was designed with a different contribution structure and risk profile, and as a result, its asset base is expected to grow at a faster pace, albeit with differing short-term returns.
Long-term outlook remains sound
Every three years, the Office of the Chief Actuary of Canada, an independent federal entity responsible for assessing the long-term viability of public pension plans, conducts a comprehensive review of the CPP’s financial sustainability.
The most recent triennial report from the Office of the Chief Actuary, released in December 2022, confirmed both the base and additional CPP remain financially sustainable over the next 75 years at current contribution rates.
That review assumed a 3.69 per cent real return for the base CPP and 3.27 per cent for the additional CPP over the long term. CPP Investments reiterated its focus on maximizing returns without undue risk, aligning with its multi-generational investment mandate.
“The CPP is designed to serve today's contributors and beneficiaries while looking ahead to future decades and across multiple generations. Accordingly, long-term results are a more appropriate measure of CPP Investments' performance and plan sustainability,” the fund said in a release.
