Canada Pension Fund Delivers 4.75% Quarterly Return

Canada's biggest pension fund generated a net investment return of 4.75% in its fiscal second quarter, fueled by gains across public markets and private-equity and credit assets.

Canada Pension Plan Investment Board said Thursday that net assets for the fiscal quarter ended Sept. 30 totaled 300.5 billion Canadian dollars ($225 billion), up from C$287.3 billion at the end of its fiscal first quarter.

The C$13.2 billion increase consisted of investment income of $13.6 billion, offset by C$400 million of pension plan cash outflows, it said.

For the first six months of fiscal 2017, the fund generated a net investment return of 6.3%.

"All investment departments contributed to the fund's overall performance," Chief Executive Mark Machin said in a release. "Longer-term returns demonstrate the prudence of our disciplined investment strategy to help sustain the fund over multiple generations," he added.

Mr. Machin took the helm of the Canadian fund in June from Mark Wiseman, who joined BlackRock Inc. Mr. Machin was previously head of the fund's international operations.

CPPIB focuses on diversifying its holdings geographically and in public and private asset classes to help guard against volatility in a bid to outperform over the long term during down markets.

Among its investments in its most recent quarter were the purchase of an additional stake in India's Kotak Mahindra Bank, a private-sector bank holding company, picking up a minority stake in the parent company of Viking Cruises in partnership with TPG Capital, and the acquisition of insurance operations connected with Lloyd's of London.

Write to Judy McKinnon at [e-mail]

(END) Dow Jones Newswires

November 10, 2016 12:15 ET (17:15 GMT)

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