CPP Investments Net Assets Total $780.7 Billion at Third Quarter Fiscal 2026
All figures in Canadian dollars unless otherwise noted Highlights:
Net assets increase by $3.2 billion 10-year net return of 8.4% 32nd Actuarial Report reaffirms long-term financial sustainability of the Canada Pension Plan
, /CNW/ – Canada Pension Plan Investment Board (CPP Investments) ended its third quarter of fiscal 2026 on December 31, 2025, with net assets of $780.7 billion, compared to $777.5 billion at the end of the previous quarter.
The $3.2 billion increase in net assets for the quarter consisted of $4.0 billion in net income, less $0.8 billion in net Canada Pension Plan (CPP) outflows. CPP Investments routinely receives more CPP contributions than required to pay benefits during the first part of the calendar year, partially offset by benefit payments exceeding contributions in the final months of the year. The Fund, composed of the base CPP and additional CPP accounts, generated a 10-year annualized net return of 8.4%. For the quarter, the Fund’s net return was 0.5%. Since CPP Investments first started investing the Fund in 1999, and including the third quarter of fiscal 2026, it has contributed $543.4 billion in cumulative net income to the Fund. For the nine-month fiscal year-to-date period, the Fund increased by $66.3 billion consisting of $51.3 billion in net income, plus $15.0 billion in net transfers from the CPP. For the period, the Fund’s net return was 7.0%. “We experienced a volatile quarter amid slowing growth and escalating geopolitical tensions,” said John Graham, President & Chief Executive Officer, CPP Investments. “The Fund remained resilient, and we stayed focused and disciplined as a patient investor. To meet obligations to current and future CPP beneficiaries we must hold to our long-horizon perspective and let fundamentals drive our conviction and decisions.” Public equities were the primary contributor to Fund returns in the third quarter, with continued gains in developed market equities. However, gains were more measured than in recent quarters as optimism softened and pricing concerns increased. Private investments, particularly in private equities, credit, and infrastructure, contributed positively to results; external managers also delivered steady performance. As a stronger Canadian dollar reduced the value of foreign investments in Canadian-dollar terms, foreign exchange movements negatively affected the Fund’s globally diversified portfolio. CPP Investments intentionally constructs a diversified, globally invested portfolio that is less concentrated than public market indices, supporting the Fund’s long-term resilience. “With that longer-term imperative in mind, the Chief Actuary’s latest report provides an independent expert affirmation that the Canada Pension Plan remains financially sustainable until at least the end of the current century,” added Mr. Graham. “The report highlights that investment performance of the base CPP over the three-year period since December 31, 2021, was more than $75 billion higher than expected, resulting in a CPP Fund that is substantially larger than projected in the previous actuarial report. This independent confirmation supports the soundness of our long-term investment approach to help support a stable retirement foundation for CPP contributors and beneficiaries for generations to come.” Performance of the Base and Additional CPP Accounts The base CPP account ended its third quarter of fiscal 2026 on December 31, 2025, with net assets of $705.0 billion, compared to $706.0 billion at the end of the previous quarter. The $1.0 billion decrease in net assets consisted of $3.8 billion in net income less $4.8 billion in net base CPP outflows. The base CPP account’s net return for the quarter was 0.5% and the 10-year annualized net return was 8.5%. The additional CPP account ended its third quarter of fiscal 2026 on December 31, 2025, with net assets of $75.7 billion, compared to $71.5 billion at the end of the previous quarter. The $4.2 billion increase in net assets consisted of $0.2 billion in net income and $4.0 billion in net transfers from the additional CPP. The additional CPP account’s net return for the quarter was 0.3% and the annualized net return since inception was 6.1%. The additional CPP was designed with a different legislative funding profile and contribution rate compared to the base CPP. Given the differences in its design, the additional CPP has had a different market risk target and investment profile since its inception in 2019. As a result of these differences, we expect the performance of the additional CPP to generally differ from that of the base CPP. Furthermore, due to the differences in its net contribution profile, the additional CPP account’s assets are also expected to grow at a much faster rate than those in the base CPP account.
CPP Investments Net Nominal Returns1 (For the period ended December 31, 2025)
Base CPP
Five-Year
7.3 %
10-Year
8.5 %
Additional CPP
Five-Year
4.4 %
Since Inception
6.1 %
1 After CPP Investments expenses.
Long-Term Financial Sustainability Every three years, the Office of the Chief Actuary of Canada, an independent federal body that provides checks and balances on the future costs of the CPP, evaluates the financial sustainability of the CPP over a long period. In the most recent triennial review published in December 2025, the Chief Actuary reaffirmed that, as at December 31, 2024, both the base and additional CPP continue to be sustainable over the long term at the legislated contribution rates. The Chief Actuary’s projections are based on the assumption that, over the 75-year projection period following December 31, 2024, the base CPP account will earn an average annual rate of return of 4.05% above the rate of Canadian consumer price inflation. The corresponding assumption is that the additional CPP account will earn an average annual real rate of return of 3.53%.
CPP Investments Net Real Returns1,2 (For the period ended December 31, 2025)
Base CPP
Five-Year
3.4 %
10-Year
5.6 %
Additional CPP
Five-Year
0.6 %
Since Inception
2.9 %
1 After CPP Investments expenses.
2 The real return is the return after the impact of inflation, defined as the Canadian Consumer Price Index, is taken into account.
CPP Investments continues to build a portfolio designed to achieve a maximum rate of return without undue risk of loss, while considering the factors that may affect the funding of the CPP and its ability to meet its financial obligations on any given day. 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. Operational Highlights Board announcements
Sylvia Chrominska was reappointed as a Director of the Board for a three-year term effective December 3, 2025.
Corporate developments
Received the Australian-market Kangaroo Issuer of the Year award by Sydney-based KangaNews for their annual institutions and transactions awards in 2025, voted by market participants. The KangaNews Awards consider factors such as the volume of issuance, breadth of distribution, deal performance and commitment to the Australian Dollar Bond market as an issuer. In 2025, CPP Investments was the largest Kangaroo sovereign, supranational, and agency (SSA) borrower in the Australian Dollar Market with A$4.25 billion of issuance. CPP Investments Insights Institute, in collaboration with the National Institute on Ageing, released a new study, The Canada Pension Plan’s Evolving Contribution to Retirement Income Adequacy, examining the CPP’s role in supporting retirement income outcomes. The research explores the Plan’s benefit design, funding model and investment governance, and highlights the CPP’s role as a form of public longevity insurance–providing predictable, indexed lifetime income that supports the long-term financial well-being of Canadians.
Third Quarter Transaction Highlights Capital Markets and Factor Investing
Completed eight co-investments alongside external fund managers, committing approximately C$1,180 million to macro-themed strategies in addition to equity trades in discount-to-net asset value opportunities, financials and consumer discretionary.
Credit Investments
Invested US$175 million in the term loan facilities of OEConnection, a leading provider of automotive software used by original equipment manufacturers, distributors, auto repair shops and insurance providers. Invested US$150 million in the financing for Businessolver, a leading benefits-administration software platform, based in the U.S. Invested US$200 million in Servpro. Headquartered in the U.S., Servpro is a leading franchised provider of restoration, cleaning, and reconstruction services for both residential and commercial properties. Committed US$135 million to Ohana Credit Fund III, which will focus on diversified credit strategies across the U.S. hospitality sector. Expanded our partnership with Redwood Trust by increasing our senior secured revolving corporate facility from US$250 million to US$400 million and extending the term of our US$500 million asset joint venture. Redwood is a U.S. mortgage REIT focused on credit investments and mortgage banking across single-family and multi-family housing. Invested US$75 million in the debt of Ultimus Fund Solutions, a leading independent provider of fund administration, accounting, and investor services across both registered and private fund markets in the U.S.
Private Equity
Committed US$300 million to Green Equity Investors Side X, L.P., managed by Leonard Green & Partners, which will focus primarily on large-cap buyouts in North America. Invested US$100 million in Service Logic, a commercial HVAC services provider across North America, alongside Bain Capital. Committed approximately US$600 million for a co-control interest in Boats Group, a global provider of online marketplaces for boats and yachts, alongside General Atlantic and existing investor Permira. Committed an additional US$87 million to FNZ Group, a global technology provider to the wealth management industry, as part of a broader financing round to support the ongoing growth and development of the business. Invested in Klick Health, a leading provider of commercialization and marketing services for global pharma and biotech companies headquartered in Canada, alongside Linden Capital Partners. Committed to invest approximately C$60 million in Wealthsimple through a primary and secondary offering at a post-money valuation of C$10 billion. Wealthsimple is one of Canada’s fastest growing money management platforms. Committed US$35 million for a 3.7% stake in Johns Lyng Group alongside Pacific Equity Partners. Based in Australia, Johns Lyng Group is a leading integrated building services provider, specializing in insurance building restoration and repair. Invested approximately C$160 million to acquire exposure to a globally diversified portfolio of mid-market private equity funds and companies through a managed fund transaction with Northleaf Capital Partners, a Canadian-headquartered private markets investment firm. Invested US$50 million in Cohere through the second close of its funding round. Cohere is a Canadian technology company focused on artificial intelligence, specializing in large language models and AI products. Invested US$150 million for an approximate 4% stake in Jeppesen, alongside Thoma Bravo. Based in the U.S., Jeppesen is a leading provider of navigation, flight planning and crew management software solutions to the aviation industry. Acquired a US$135 million limited partner interest in TA Associates Fund XII via a secondary transaction. TA Associates is a global growth private equity firm investing in technology, health care, financial services, consumer and business services. Committed €143 million, inclusive of €68 million of re-investment, to CVC Capital Partners Locron, a single-asset continuation fund. Invested into Kailera Therapeutics through a Series B financing alongside Bain Capital Private Equity. Based in the U.S., Kailera is a clinical-stage biopharmaceutical company focused on advancing a differentiated, late-stage portfolio of next-generation therapies for the treatment of obesity. Invested US$50 million in Anthropic through a Series F financing alongside ICONIQ. Based in the U.S., Anthropic is a leading AI-model developer. Invested US$70 million in AppZen through a Series D financing alongside Riverwood Capital Partners. Based in the U.S., AppZen is a leading AI-platform for finance teams, enabling expense and accounts payable processes across Fortune 500 corporations and global companies. Exited our approximate 9% stake in Viasat, a U.S.-based global communications company. Net proceeds from the sale were approximately C$224 million. We originally acquired a stake in the company in 2024 through the sale of Inmarsat. Sold our approximate 1% stake in ServiceTitan, a cloud-based software platform built to power trades businesses based in the U.S., following the company’s IPO. Net proceeds from the sale were C$106 million. We originally invested in the company in 2023.
Real Assets
Entered into a definitive agreement to acquire an indirect non-controlling interest in Castrol for an investment of up to US$1.05 billion, alongside Stonepeak. Headquartered in the U.K., Castrol is one of the largest lubricants providers globally and serves consumer automotive customers, as well as commercial and industrial end markets. Entered into an agreement to establish the Goodman European Data Centre Development Partnership with Goodman Group. The partners have initially each committed €1.1 billion to develop a portfolio of data centre projects in Frankfurt, Amsterdam and Paris. Formed a joint venture with Dream Industrial REIT and Dream Asset Management Corp to acquire last-mile industrial properties in major markets across Canada. We have allocated C$1.0 billion of equity capital (90%) to the joint venture. The partners have agreed to acquire a portfolio of 12 Canadian industrial assets totaling 3.6 million square feet across Ontario, Quebec and Alberta, for a purchase price of C$805 million. Acquired six industrial and logistics parks in India, valued at INR 30 billion (C$471 million) through the IndoSpace Core joint venture, committing INR 14 billion (C$217 million) to fund the acquisition. We own 93% of the joint venture, which was established in 2017 with IndoSpace. Committed US$300 million to ArcLight Infrastructure Partners VIII, which will focus on firm power, renewable energy and midstream assets, primarily in North America. Entered into a definitive agreement to acquire an additional 25% interest in FCC Servicios Medio Ambiente Holding, S.A.U., the environmental services division of FCC Group, for €1.0 billion, which will result in a 49.99% ownership stake upon closing. Entered into a definitive agreement with ArcLight Capital Partners to invest US$1.0 billion for a strategic minority position in AlphaGen, one of the largest independent power portfolios in the U.S. Sold a portion of our ownership stake in Kraken in connection with the strategic separation from Octopus Energy Group and external capital raise, resulting in net proceeds of US$150 million. We continue to own a significant ongoing ownership position in both Octopus Energy Group and Kraken. We originally invested in Octopus Energy Group in December 2021. Completed the sale of our 49.87% stake in Transportadora de Gas del Peru S.A., which operates Peru’s main natural gas and natural gas liquids pipelines under a long-term concession, to EIG. Net proceeds from the sale were approximately US$820 million. Our original investment was made in 2013.
Transaction Highlights Following the Quarter
Invested US$200 million into a first lien term loan for Global Cellulose Fibers, a leading global producer of bleached softwood fluff pulp, based in the U.S. Entered into a joint venture with IRA Capital and a global institutional investor to invest in U.S. medical outpatient buildings with an expected acquisition capacity of approximately US$850 million. We will hold a 47.5% stake in the joint venture and have allocated US$143 million of equity capital. Committed to initially invest up to JPY 25.4 billion (C$222 million) to a Japan hospitality strategy managed by Singapore-based real estate investment manager SC Capital Partners Group. Committed US$110 million indirectly in the take-private of Dentalcorp, Canada’s largest network of dental practices, alongside GTCR. Committed to invest an additional C$750 million through our established Canadian mid-market program managed by Northleaf Capital Partners, supporting the growth and scaling of domestic private companies. Entered into a definitive agreement to sell Cordelio Power, an independent power producer in North America, to Pattern Energy Group, a leader in clean energy and transmission infrastructure. This share-based transaction will increase our existing ownership stake in Pattern Energy, together with other institutional investors, to 69.1% upon closing.
About CPP Investments Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2025, the Fund totalled C$780.7 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments. Disclaimer Certain statements included in this press release constitute “forward-looking information” within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbors. All such forward-looking statements are made and disclosed in reliance upon the safe harbor provisions of applicable United States securities laws. Forward-looking information and statements include all information and statements regarding CPP Investments’ intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as “trend,” “potential,” “opportunity,” “believe,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions. The forward-looking information and statements are not historical facts but reflect CPP Investments’ current expectations regarding future results or events. The forward-looking information and statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including available investment income, intended acquisitions, regulatory and other approvals and general investment conditions. Although CPP Investments believes that the assumptions inherent in the forward-looking information and statements are reasonable, such statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. CPP Investments does not undertake to publicly update such statements to reflect new information, future events, and changes in circumstances or for any other reason. The information contained on CPP Investments’ website, LinkedIn, Facebook, Instagram and X are not a part of this press release. CPP INVESTMENTS, INVESTISSEMENTS RPC, Canada Pension Plan Investment Board, L’OFFICE D’INVESTISSEMENT DU RPC, CPPIB and other names, phrases, logos, icons, graphics, images, designs or other content used throughout the press release may be trade names, registered trademarks, unregistered trademarks, or other intellectual property of Canada Pension Plan Investment Board, and are used by Canada Pension Plan Investment Board and/or its affiliates under license. All rights reserved. SOURCE Canada Pension Plan Investment Board