In 2024, approximately six million Canadians received benefits under the Canada Pension Plan (CPP) — a tangible reminder of the vital role the CPP plays in the lives of individuals and families across this country. The Office of the Chief Actuary has affirmed that the CPP will continue to be there for generations to come, as it is projected to remain financially sustainable for at least the next 75 years. This home-grown success story is one Canadians can be proud of, particularly at a time when many other countries are struggling with the financial sustainability of their national pension systems.
With a quarter century of working for Canadians through multiple economic cycles, CPP Investments’ commitment to contributing to the financial security in retirement for 22 million Canadian contributors and beneficiaries remains steadfast. The Fund has grown in 25 of our 26 years managing the Fund, and this scaling has contributed significantly to the CPP’s critical position in Canada’s retirement system, established to serve Canadians from all walks of life. The disciplined execution of a forward-thinking strategy, by a high-performing team, drives CPP Investments to keep the CPP on a solid footing for multiple generations.
Reflecting on the past year, we once again navigated a complex global investing environment. In 2024, nearly half the world’s population participated in national elections. At the same time, ongoing global conflicts continued to heighten geopolitical tensions. The Canadian economy experienced moderating inflation, only to be disrupted by a trade dispute with our nation’s closest economic partner. Through all this volatility and uncertainty, the CPP, supported by a leading investment organization, delivered on its purpose. The Canadian pension system, including CPP Investments, continues to be the envy of the world and a source of pride for all Canadians.
Solid results in a shifting world
This year, we delivered solid returns for the Fund. In fiscal 2025, the Fund’s net income (after all costs) was $59.8 billion, and our one-year return was 9.3%. The Fund grew to $714.4 billion as of March 31, and it remains on track to reach $1 trillion by 2031. Our 10-year return remains steady at 8.3%. Since we began investing, roughly three-quarters of the Fund’s current assets — $492 billion — have come from net investment income generated through the work CPP Investments does on your behalf. That’s value created through long-term, patient investing.
Since the end of our fiscal year on March 31, economic conditions have become even more challenging. Threatened and implemented tariffs have diminished growth expectations, inflation remains a concern, and the market is pricing in a higher probability of recession. While volatility has increased across asset classes, the Fund remains well-positioned to navigate these shifts. Our diversified, actively managed portfolio — and our ability to rebalance with discipline in response to market volatility — helps ensure Fund resiliency, even as market dynamics evolve.
Canada: an investment destination of strength and value
CPP Investments has been investing in Canada for more than 25 years. With $114 billion in total investments, we have consistently maintained an overweight position in Canada because we believe in its long-term potential. While we must operate globally, we are proudly Canadian and remain confident that this country is one of the best places in the world to invest.
Our country offers what long-term investors value most: stability, transparency and opportunity. Our legal and regulatory systems are strong, our institutions trusted, and our democracy stable. Canada also has world-class governance standards and one of the most respected university sectors in the world.
Canada is a global powerhouse in natural resources and energy, and CPP Investments has several significant investments in these industries, both here at home and around the world. As one of the world’s top five energy producers, Canada is recognized as a responsible and reliable supplier, helping to meet rising global demand. Our country is also the world’s largest producer of potash, a leading global producer of uranium, and holds reserves of nearly every critical mineral used to produce batteries.
Recent trade-related interventions have galvanized policymakers and industry to re-think Canadian industrial policy, aiming to make it even stronger, more independent, and more resilient. As a nation, we must consider how to build on these natural endowments, skilled workforce, and world-class academic institutions – not just to sustain growth but to commercialize innovation, scale high-value industries, and reward entrepreneurial ambition. I’m excited about what this could mean for CPP Investments and how this could create additional domestic investment opportunities for the Fund.
A portfolio built for the long term
CPP Investments has once again been recognized as a global success story. Global SWF, a pension industry specialist, recently released its annual ranking of pension fund performance, measured on a 10-year returns basis. We ranked second among national pension funds globally. We also continue to outperform international benchmarks for governance and transparency. CPP Investments was ranked number two on the Global Pension Transparency Benchmark and our rating includes a perfect score on governance.
CPP Investments has contributed to the success of the CPP by constructing a diversified portfolio designed to perform through all market cycles including the type of short-term economic volatility we are now experiencing. Our fiscal year performance demonstrated this design in action. Our 2024 calendar year performance – 14.2% after all costs – ranks well against global pension and institutional investors over this period. And investments in credit and public equities generated double-digit returns this fiscal year. Currencies also contributed positively to performance, underscoring the benefits of multiple sources of investment return.
We also note that over the fiscal year ending March 31, 2025, the global public equity indexes against which we compare the performance of our investment strategies performed particularly well. That is why our relative performance this fiscal year was negative 1.6% compared to our benchmark portfolios. One of the sources of the relative underperformance was a deliberate underweight against U.S.-based risk assets, specifically public equity markets. We continue to believe building a diversified portfolio, and avoiding overconcentration in any one geography or sector, is the prudent long-term approach for managing the Fund. While short-term results relative to the benchmark are important accountability tools, our focus remains on generating stable, long-term risk-adjusted returns.
Diversification that delivers in a fragmented world
Geopolitical developments moved the markets throughout the year, and we expect these conditions to persist. Through it all, we remain focused on understanding and managing the impacts on the portfolio. Our long-standing risk management frameworks are designed to address political and regulatory risks and opportunities across jurisdictions. In times of heightened volatility, the value of disciplined diversification becomes even more evident.
We announced over 100 transactions, both in Canada and abroad, with values in excess of $100 million. But what’s more important than volume is quality: good investment decisions that will stand the test of time. Investments made today are designed to deliver value for the Fund well into the future.
Below are some of this year’s investment highlights:
We committed US$75 million to Radical Growth I, managed by Radical Ventures, a Canadian-headquartered AI-focused venture and growth manager with offices in Toronto, San Francisco, and London, as well as an additional US$75 million to Radical Fund IV subsequent to the fiscal year end, bringing our total commitment to approximately US$280 million.
We also invested US$180 million in the take-private transaction of Nuvei, alongside Advent. Nuvei is a global payments provider based in Montreal, Canada.
In addition, we realized a partial interest in Viking Holdings through the company’s initial public offering as well as subsequent follow-on offerings, generating net proceeds of $2 billion. Viking Holdings is a global cruise and travel company in which we have been invested for just over eight years.
Leadership and organizational strength
One year ago, as part of our strategy evolution, we updated our leadership structure so that investment departments report to our Chief Investment Officer, enabling more dynamic portfolio management. We are already seeing the benefits — stronger collaboration, clearer lines of accountability, and continued strong results. I am proud to work alongside an accomplished senior management team (SMT), and this year, all SMT promotions came from within.
- Caitlin Gubbels is now Senior Managing Director & Global Head of Private Equity, having joined CPP Investments 14 years ago.
- Priti Singh was appointed Senior Managing Director & Chief Risk Officer after 16 years with us.
- Heather Tobin became Senior Managing Director & Global Head of Capital Markets and Factor Investing after 15 years with the organization.
These transitions reflect the pipeline of talent we have built, and our ability to evolve as the world grows more complex.
A strategy built for long-term performance
Our corporate strategy rests partly on a simple idea: extraordinary performance comes from a truly synchronized organization. We can only deliver world-class results for Canadians by integrating all our capabilities and competing as one Fund, not a collection of asset classes.
We continue to focus on increasing the efficiency and effectiveness of the entire enterprise. We currently manage approximately $140 billion more than we did just two years ago with roughly the same number of employees; this is a great example of increased productivity. We are continuously improving cross-organizational connectivity, making it easier for data, knowledge, and insights to freely flow across the enterprise. This leads to informed, improved decision making – and ultimately, better investment outcomes. We have leaned into collaboration, relative value and have prioritized investments that transcend asset class boundaries, such as data centres.
As long-term investors, sustainability is embedded in how we pursue opportunities and manage risk across the portfolio. In the case of climate change, we’re investing for a whole economy transition, knowing that while global efforts are clear, the pace of progress will be uneven. Our teams integrate insights throughout the investment lifecycle, from due diligence to asset management to active stewardship and disposition. We are already seeing results, including a reduction in our portfolio’s carbon intensity year over year, reflecting actions we continue to take. As the world navigates a complex and evolving energy landscape, we continue to see real opportunity to deliver strong, long-term returns. We remain convinced that integrating sustainability creates enduring value for generations of Canadians.
Our advantages go well beyond scale and are grounded in deep relationships and shared knowledge built across global markets over decades. In an increasingly fragmented world, our long-standing presence and reputation help open doors to some of the best investment opportunities.
Looking ahead
This is my fifth year as President and CEO, during which global disruption has been a constant companion. It remains a privilege to lead this institution through such a pivotal time. As I mentioned at the start of this letter, in 2024, approximately six million Canadians received CPP benefits. That is real money, supporting households and local communities, and reinforcing both the responsibility we carry and our pride in contributing to the long-term financial strength of the CPP for all Canadians.
On behalf of everyone at CPP Investments, I want to thank you for trusting us to deliver on Canada’s pension promise.
Sincerely,
John Graham
President & CEO
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