Canada Pension Plan Investment Board (CPPIB) delivered a 0.8-per-cent loss during the first quarter of its fiscal year, which started April 1, driven by negative returns on both public and private investments.
Because it is only the first quarter, CPPIB does not provide detailed reporting on each of its divisions. In a release, the fund attributed the small loss to the declining values of fixed income assets – bond prices tend to fall when rates rise – and foreign exchange losses from a stronger Canadian dollar relative to the U.S. dollar.
Despite the small loss, CPPIB’s total assets grew over the quarter to $575-billion, up from $570-billion at the end of the fiscal year, because Canadians are currently contributing more to the fund than the amount being drawn from its reserves – though that is expected to reverse as more Baby Boomers retire. The Canadian Pension Plan is the primary national retirement program for working Canadians, and CPPIB has managed the plan’s money since 1999.
Although U.S. equity markets have delivered large returns so far this year, gains from other stock markets around the world this year are much more muted. Private assets have also struggled after years of scorching returns, and there are concerns this sector will see write downs if interest rates remain high.
Private assets include real estate, infrastructure and private credit, and commercial real estate in particular is facing intense scrutiny. The world’s most sophisticated private real estate investors, including Canadian pension plans, say scores of properties they own are worth hundreds of millions of dollars each and have held most of their value. However, investors have been dumping shares of publicly-traded real estate investment trusts (REITs), particularly those that own skyscrapers, because they don’t think such lofty values still make sense
Over the past decade CPPIB has reported an annualized net return of 9.8 per cent, though its recent performance is more subdued. In its last fiscal year the fund reported a 1.3-per-cent return, with gains from private investments helping to offset weak performance from public stocks and bonds.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
