The Canada Pension Plan (CPP) Fund has reached a major financial milestone, with its net assets rising to approximately $700 billion at the close of its latest quarter.

The Canada Pension Plan Investment Board (CPPIB) reported a $24.5- billion increase in net assets, marking significant growth driven by strong investment returns.

CPPIB’s total net assets now stand at $699.6 billion, compared to $675.1 billion at the end of the previous quarter. The increase comprises $26 billion in net income, offset by $1.5 billion in net outflows from the Canada Pension Plan.

The fund recorded a 3.8% net return for the quarter, contributing to a 10-year annualized return of 9.2%.

“Our investment teams were very active with more than 40 transactions signed or closed in the last three months of the calendar year,” said John Graham, president and CEO of CPPIB.

The fund has surpassed initial projections by the Office of the Chief Actuary of Canada, reaching the $700-billion mark five years ahead of schedule. CPPIB attributes this success to strategic shifts in its investment approach over time.

CPPIB completed a series of real estate transactions during the quarter, including the formation of a new joint-venture with Kennedy Wilson in the U.K. for single-family rental housing, with an initial commitment of £500 million. Additionally, the organization signed an agreement with Equinix and GIC to raise more than US$15 billion in capital for digital-infrastructure investments, with CPPIB committing up to US$2.4 billion.

Other notable real estate moves included the sale of CPPIB’s 50% stake in the 2 Queen Street East office tower in Toronto, generating net proceeds of C$107 million, and the sale of a 45% stake in the Goodman North American Partnership for expected net proceeds of US$2.2 billion.

Looking forward, CPPIB remains focused on long-term financial sustainability and global investment opportunities.

“Even with considerable uncertainty on a global scale as 2025 begins, with the combination of a strong, experienced team and a resilient portfolio, we continue to seek out the best opportunities to deliver steady, long-term investment returns for the fund,” said Graham.

Photo: Goodman Group