How We Invest
Our investment strategy is designed to deliver a well-balanced and globally diversified portfolio that will maximize sustained long-term returns without incurring undue risk. The portfolio is structured to be resilient in the face of wide-ranging market and economic conditions. It covers all major asset classes, manages and mitigates significant risk factors, and encompasses multiple distinct investment strategies.
With this approach, we’re able to achieve an effective balance of risks and returns while seeking to add significant value through active management. Our goal is to achieve sustainable returns over the long term in the best interests of the contributors and beneficiaries of the CPP.
Our Investment Strategy
Our investment strategy is designed to deliver a globally diversified portfolio that will maximize long-term returns without incurring undue risk.
Investment Framework
We use a diversified investment approach, investing across a wide range of global markets to help ensure the financial sustainability of the CPP.
Investing for the Long Term
Our investment strategy focuses on building a well-balanced, globally diversified portfolio that aims to maximize long-term returns while managing risk responsibly.
Active Management
CPP benefits are sustained by only two revenue streams – contributions by participants and net returns on investments.
Diversification
Our investment strategy is designed to deliver a well-balanced, globally diversified portfolio that aims to maximize long-term, sustainable returns while carefully managing risk.
Total Portfolio Approach
We call our decision-making process the Total Portfolio Approach. It encompasses our portfolio construction and capital allocation, deployment and management activities.
Governance of Portfolio Companies
In appropriate circumstances, we use board nomination rights to responsibly preserve and enhance the long-term value of our investments.
Tax Strategy
Our tax strategy is consistent with our mandate and with CPP’s status as Canada’s national pension plan. It is one of a number of considerations we take into account as part of our investment process. Our tax strategy is best considered in the context of how CPP’s 22 million Canadian contributors and beneficiaries are taxed on their CPP income.
Learn More2024 Annual Report
We continue to deliver solid performance for the long term, helping to grow the CPP Fund and build a foundation for Canadians’ retirement security.
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