CPP Investments Net Assets Total $523 Billion at First Quarter Fiscal 2023 | CPP Investments (2023)

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First-Quarter Performance:

  • Negative 4.2% net return demonstrates resilience compared to performance of global markets
  • Five-year net return of 8.7%
  • 10-year net return of 10.3%

TORONTO, ON (August 11, 2022): Canada Pension Plan Investment Board (CPP Investments) ended its first quarter of fiscal 2023 on June 30, 2022, with net assets of $523 billion, compared to $539 billion at the end of the previous quarter.

The $16 billion decrease in net assets for the quarter consisted of a net loss of $23 billion and $7 billion in net transfers from the Canada Pension Plan (CPP).

In the five-year period up to and including the first quarter of fiscal 2023, CPP Investments has contributed $171 billion in cumulative net income to the Fund, and over a 10-year period it contributed $305 billion to the Fund on a net basis.

(Video) CPP Investments 2022 National Public Meeting

The Fund, which includes the combination of the base CPP and additional CPP accounts, achieved five-year and 10-year annualized net returns of 8.7% and 10.3%, respectively. For the quarter, the Fund returned negative 4.2%, outperforming returns for leading global indices that declined, on average, well into double-digit territory.

“Financial markets experienced the most challenging first six months of the year in the last half century, and the Fund’s first fiscal quarter was not immune to such widespread decline. However, our active management strategy – diversified across asset classes and geographies – moderated the impact on the Fund, preserving investment value,” said John Graham, President & CEO. “The uncertain business and investment conditions we noted in the previous quarter continue, and we expect to see this turbulence persist throughout the fiscal year. Our resilient portfolio was designed to create value over the very long term as demonstrated by our continued strong 10-year net return, even as we expect to experience double-digit percentage losses one year in twenty.”

The Fund’s quarterly results were driven by losses in public equity strategies, due to the broad decline in global equity markets. Investments in private equity, credit and real estate contributed modestly to the losses this quarter. Gains by external portfolio managers, quantitative trading strategies and investments in energy and infrastructure contributed positively to this quarter’s results. The Fund also experienced losses in fixed income due to higher interest rates imposed by central banks to fight inflation. These losses were offset by foreign exchange gains of $3.1 billion as the Canadian dollar weakened against the U.S. dollar.

“We know Canadians are concerned about the impact of market volatility on their retirement plans, and they can take comfort in the fact that the Fund is expected to deliver solid performance over the long term, even with periodic turbulence such as we are witnessing this year,” Graham said. “Looking ahead, I remain cautiously optimistic – cautious on the markets but optimistic and confident about CPP Investments’ ability to navigate markets and add value in the best interests of 21 million CPP contributors and beneficiaries.”

Performance of the Base and Additional CPP Accounts

The base CPP account ended its first quarter of fiscal 2023 on June 30, 2022 with net assets of $509 billion, compared to $527 billion at the end of the previous quarter. The $18 billion decrease in assets consisted of $22 billion in net losses and $4 billion in net transfers from CPP. The base CPP account achieved a negative 4.2% net return for the quarter, and a five-year annualized return of 8.7%.

The additional CPP account ended its first quarter of fiscal 2023 on June 30, 2022 with net assets of $14 billion, compared to $12 billion at the end of the previous quarter. The $2 billion increase in assets consisted of $647 million in net losses and $3 billion in net transfers from CPP. The additional CPP account achieved a negative 4.8% net return for the quarter, and an annualized return of 5.3% since inception in 2019.

(Video) John Graham

The additional CPP was designed with a different legislative funding profile and contribution rate compared to the base CPP. Given the differences in their design, the additional CPP has had a different market risk target and investment profile since its inception in 2019. As a result of these differences, we expect the performance of the additional CPP to generally differ from that of the base CPP.

Furthermore, due to the differences in their net contribution profiles, the assets in the additional CPP account are also expected to grow at a much faster rate than those in the base CPP account.

CPP Investments Net Assets Total $523 Billion at First Quarter Fiscal 2023 | CPP Investments (2)

Long-Term Sustainability

Every three years, the Office of the Chief Actuary of Canada (OCA) conducts an independent review on the sustainability of the CPP over the long term. In the most recent triennial review published in December 2019, the Chief Actuary reaffirmed that, as at December 31, 2018, both the base and additional CPP continue to be sustainable over the 75-year projection period at the legislated contribution rates.

The Chief Actuary’s projections are based on the assumption that, over the 75 years following 2018, the base CPP account will earn an average annual rate of return of 3.95% above the rate of Canadian consumer price inflation. The corresponding assumption is that the additional CPP account will earn an average annual real rate of return of 3.38%.

CPP Investments Net Assets Total $523 Billion at First Quarter Fiscal 2023 | CPP Investments (3)

(Video) CPP Investments’ 2020 New Brunswick public meeting

CPP Investments continues to build a portfolio designed to achieve a maximum rate of return without undue risk of loss, while considering the factors that may affect the funding of the CPP and its ability to pay current benefits. The CPP is designed to serve today’s contributors and beneficiaries while looking ahead to future decades and across multiple generations. Accordingly, long-term results are a more appropriate measure of CPP Investments’ performance and plan sustainability.

Operational Highlights

Corporate developments

  • CPP Investments is the world’s most transparent pension fund, according to the global pension transparency benchmark, a collaboration between Top1000funds.com and CEM Benchmarking Inc. The benchmark, launched in 2021, measures the transparency of disclosures of 15 pension systems around the world across measurements such as cost, governance, performance and responsible investing.

Executive announcements

  • The current role of Senior Managing Director & Chief Financial and Risk Officer (CFRO) will be divided into two distinct senior management positions, a Chief Risk Officer (CRO) and a Chief Financial Officer (CFO), as the organization continues to position itself for future growth. After serving five years as CFRO, Neil Beaumont left the role at the end of July. During his tenure, Mr. Beaumont built a strong team and helped to strengthen CPP Investments’approach to risk management, with a foundational new Risk Policy, and to enhance the organization’s financial disclosure.
  • Deborah Orida, Senior Managing Director, Global Head of Real Assets & Chief Sustainability Officer (CSO), left the organization in mid-August to become CEO of a Canadian pension fund. During her 13-year career at CPP Investments, Ms. Orida played a significant role in the organization’s success, leading Private Equity Asia, Active Equities and Real Assets before adding the role of CSO.

First-Quarter Investment Highlights

Credit Investments

  • Invested US$100 million in the unitranche loan for IGT Solutions.IGT Solutions is a business process outsourcing company specialized in airlines, online ticket agencies and hospitality, with operations primarily in India and the Philippines and clients in North America and Europe.
  • Committed US$160 million to Lumina Strategic Solutions Fund. Lumina is a Brazil-focused special situations credit investment manager.
  • Closed a C$230 million investment in the term loans of Legal Search, a provider of property and corporate-related search services in Australia, the U.K., and the U.S.

Private Equity

(Video) As Demographics change, will Canada’s Pension Plan (CPP) be Sustainable?

  • Closed on a US$50 million commitment to Radical Fund III, after previously committing to Fund II as an anchor investor. Radical is an early-stage manager based in Toronto focusing on AI opportunities in Canada and the U.S.
  • Committed US$100 million to Trustar Capital V. Trustar Capital Partners is the private equity affiliate of CITIC Capital focused on control-oriented buyouts in Greater China.
  • Invested US$50 million in a co-investment alongside Silver Lake in Entrata for a 4% stake. Entrata is a developer of property management software that focuses on multi-family residential apartments.
  • Committed €400 million to EQT X. EQT is a global investment organization with €77 billion in assets under management across 36 active funds.
  • Committed to a US$120 million co-investment alongside CVC Capital into Sajjan India Limited, a specialized agrochemical manufacturer in India, for up to a 17% stake.
  • Committed to a US$50 million co-investment alongside Multiples into Acko Tech & Services, India’s only pure-play digital insurance platform focused on retail customers. Once all funding is deployed, we will hold an approximate 5% stake.
  • Closed a US$35 million co-investment alongside CVC Capital into Razer Inc., a global lifestyle brand for gamers, providing gaming peripherals, gaming laptops and desktops, gaming accessories and software solutions worldwide.
  • Made a US$34 million investment alongside Multiples into Kogta Financial Limited, a non-banking financial company focusing on new and used vehicle financing and lending to micro, small and medium enterprises in semi-rural areas in India, for an approximate 9% stake.
  • Closed a US$50 million co-investment in Anaplan alongside Thoma Bravo for an approximate 0.5% stake. Anaplan is a U.S.-based provider of cloud-based planning and analytics software.
  • Invested US$65 million alongside Anchor Equity Partners into Fresheasy, a home meal kit distributor in South Korea, for an approximate 9% stake.

Real Assets

  • Acquired 100% of four onshore wind farms in central Sweden through Renewable Power Capital (RPC), our European onshore renewables platform. As part of the transaction, we are committing a further €803 million to RPC.
  • Committed US$300 million to the Hillhouse Real Asset Opportunities Fund (HRAOF). HRAOF aims to invest in the new economy real estate sectors in China focusing on life science, data centres and logistics.

Asset Dispositions

  • Agreed to sell six logistics warehouses in Western China in the Goodman China Logistics Partnership (GCLP). Net proceeds from the sale will be approximately C$320 million. GCLP was established with Goodman Group to own and develop logistics assets in mainland China in 2009 and we have an 80% ownership interest in GCLP.
  • Exited Canterra Farmland Holdings LP, which sold its diversified portfolio of farmland, with net proceeds of approximately C$390 million. We originally acquired our 99% stake in 2014.

Transaction Highlights Following the Quarter

  • Increased our commitment to BAI, a global communications infrastructure provider, alongside partners Manulife and AIMCo to support BAI’s ongoing growth strategy, including the agreed acquisition of ZenFi Networks. We have committed approximately C$3 billion towards BAI since 2009 and hold an 86% ownership stake.
  • Acquired an additional 33.3% stake in Bullring Shopping Centre in Birmingham, U.K., bringing our stake to 50% for a total equity exposure of C$439 million.
  • Invested an additional US$150 million to Octopus Energy to support its global expansion and renewables strategy. Octopus is a global clean energy technology pioneer based in the U.K.
  • Committed a further US$225 million to expand our strategic partnership with Octopus Energy, and directly support the business’ efforts to accelerate and enhance the development and integration of renewables in the power system.
  • Closed on a €200 million commitment to TDR Capital V. TDR Capital is a private equity firm based in London and focuses on mid-market buyout investments headquartered in or with significant operations in Europe.
  • Committed US$150 million to NewQuest Asia Fund V. NewQuest Capital Partners is a specialized secondaries manager focused on transactions involving middle-market companies and General Partners within emerging Asian markets.
  • Closed on a US$150 million commitment to Oak Hill Capital Partners VI. Oak Hill is a U.S.-based fund manager focused on investing across the industrials, media & communications, business services and consumer sectors in the U.S.
  • Closed on a US$400 million commitment to Apax XI. Apax Partners is a global private equity firm focused on upper middle-market and large-cap buyout opportunities.
  • Committed a further C$700 million to our Indian toll roads portfolio company IndInfravit Trust as part of a transaction to acquire five operating road concessions from Brookfield Asset Management for C$875 million.
  • Closed on an aggregate commitment of US$333 million to Sequoia Capital’s 2022 APAC fundraise, comprising commitments to the Sequoia China funds and the Sequoia India/South East Asia funds.
  • Closed on a US$100 million commitment to Kimmeridge Fund VI. Kimmeridge is a U.S.-based alternative asset manager focused exclusively on the energy sector.
  • Committed an additional US$225 million to KDV II, our second development joint venture with partners ESR and APG. KDV II invests in and develops a best-in-class industrial and warehouse logistics portfolio in the Seoul and Busan metropolitan areas in South Korea. We hold a 45% stake in the joint venture.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the 21 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2022, the Fund totalled $523 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook or Twitter.

Disclaimer

Certain statements included in this press release constitute “forward-looking information” within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbors. All such forward-looking statements are made and disclosed in reliance upon the safe harbor provisions of applicable United States securities laws. Forward-looking information and statements include all information and statements regarding CPP Investments’ intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as “trend,” “potential,” “opportunity,” “believe,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions. The forward-looking information and statements are not historical facts but reflect CPP Investments’ current expectations regarding future results or events. The forward-looking information and statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including available investment income, intended acquisitions, regulatory and other approvals and general investment conditions. Although CPP Investments believes that the assumptions inherent in the forward-looking information and statements are reasonable, such statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. CPP Investments does not undertake to publicly update such statements to reflect new information, future events, and changes in circumstances or for any other reason. The information contained on CPP Investments’ website, LinkedIn, Facebook and Twitter are not a part of this press release. CPP INVESTMENTS, INVESTISSEMENTS RPC, Canada Pension Plan Investment Board, L’OFFICE D’INVESTISSEMENT DU RPC, CPPIB and other names, phrases, logos, icons, graphics, images, designs or other content used throughout the press release may be trade names, registered trademarks, unregistered trademarks, or other intellectual property of Canada Pension Plan Investment Board, and are used by Canada Pension Plan Investment Board and/or its affiliates under license. All rights reserved.

(Video) Canada Pension Plan Loses $22 Billion, Will It Affect Me? | Henry Wong

All figures in Canadian dollars unless otherwise noted.

First-Quarter Performance: Negative 4.2% net return demonstrates resilience compared to performance of global markets Five-year net return of 8.7% 10-year net return of 10.3%TORONTO, ON (August 11, 2022): Canada Pension Plan Investment Board (CPP Investments) ended its first quarter of fiscal 2023 on June 30, 2022, with net assets of $523 billion, compared to $539 billion at the end of the previous quarter.The $16 billion decrease in net assets for the quarter consisted of a net loss of $23 billion and $7 billion in net transfers from the Canada Pension Plan (CPP).In the five-year period up to and including the first quarter of fiscal 2023, CPP Investments has contributed $171 billion in cumulative net income to the Fund, and over a 10-year period it contributed $305 billion to the Fund on a net basis.The Fund, which includes the combination of the base CPP and additional CPP accounts, achieved five-year and 10-year annualized net returns of 8.7% and 10.3%, respectively. For the quarter, the Fund returned negative 4.2%, outperforming returns for leading global indices that declined, on average, well into double-digit territory.“Financial markets experienced the most challenging first six months of the year in the last half century, and the Fund’s first fiscal quarter was not immune to such widespread decline. However, our active management strategy – diversified across asset classes and geographies – moderated the impact on the Fund, preserving investment value,” said John Graham, President & CEO. “The uncertain business and investment conditions we noted in the previous quarter continue, and we expect to see this turbulence persist throughout the fiscal year. Our resilient portfolio was designed to create value over the very long term as demonstrated by our continued strong 10-year net return, even as we expect to experience double-digit percentage losses one year in twenty.”The Fund’s quarterly results were driven by losses in public equity strategies, due to the broad decline in global equity markets. Investments in private equity, credit and real estate contributed modestly to the losses this quarter. Gains by external portfolio managers, quantitative trading strategies and investments in energy and infrastructure contributed positively to this quarter’s results. The Fund also experienced losses in fixed income due to higher interest rates imposed by central banks to fight inflation. These losses were offset by foreign exchange gains of $3.1 billion as the Canadian dollar weakened against the U.S. dollar.“We know Canadians are concerned about the impact of market volatility on their retirement plans, and they can take comfort in the fact that the Fund is expected to deliver solid performance over the long term, even with periodic turbulence such as we are witnessing this year,” Graham said. “Looking ahead, I remain cautiously optimistic – cautious on the markets but optimistic and confident about CPP Investments’ ability to navigate markets and add value in the best interests of 21 million CPP contributors and beneficiaries.”Performance of the Base and Additional CPP AccountsThe base CPP account ended its first quarter of fiscal 2023 on June 30, 2022 with net assets of $509 billion, compared to $527 billion at the end of the previous quarter. The $18 billion decrease in assets consisted of $22 billion in net losses and $4 billion in net transfers from CPP. The base CPP account achieved a negative 4.2% net return for the quarter, and a five-year annualized return of 8.7%.The additional CPP account ended its first quarter of fiscal 2023 on June 30, 2022 with net assets of $14 billion, compared to $12 billion at the end of the previous quarter. The $2 billion increase in assets consisted of $647 million in net losses and $3 billion in net transfers from CPP. The additional CPP account achieved a negative 4.8% net return for the quarter, and an annualized return of 5.3% since inception in 2019.The additional CPP was designed with a different legislative funding profile and contribution rate compared to the base CPP. Given the differences in their design, the additional CPP has had a different market risk target and investment profile since its inception in 2019. As a result of these differences, we expect the performance of the additional CPP to generally differ from that of the base CPP.Furthermore, due to the differences in their net contribution profiles, the assets in the additional CPP account are also expected to grow at a much faster rate than those in the base CPP account.Long-Term Sustainability Every three years, the Office of the Chief Actuary of Canada (OCA) conducts an independent review on the sustainability of the CPP over the long term. In the most recent triennial review published in December 2019, the Chief Actuary reaffirmed that, as at December 31, 2018, both the base and additional CPP continue to be sustainable over the 75-year projection period at the legislated contribution rates.The Chief Actuary’s projections are based on the assumption that, over the 75 years following 2018, the base CPP account will earn an average annual rate of return of 3.95% above the rate of Canadian consumer price inflation. The corresponding assumption is that the additional CPP account will earn an average annual real rate of return of 3.38%.CPP Investments continues to build a portfolio designed to achieve a maximum rate of return without undue risk of loss, while considering the factors that may affect the funding of the CPP and its ability to pay current benefits. The CPP is designed to serve today’s contributors and beneficiaries while looking ahead to future decades and across multiple generations. Accordingly, long-term results are a more appropriate measure of CPP Investments’ performance and plan sustainability.Operational HighlightsCorporate developments CPP Investments is the world’s most transparent pension fund, according to the global pension transparency benchmark, a collaboration between Top1000funds.com and CEM Benchmarking Inc. The benchmark, launched in 2021, measures the transparency of disclosures of 15 pension systems around the world across measurements such as cost, governance, performance and responsible investing.Executive announcements The current role of Senior Managing Director & Chief Financial and Risk Officer (CFRO) will be divided into two distinct senior management positions, a Chief Risk Officer (CRO) and a Chief Financial Officer (CFO), as the organization continues to position itself for future growth. After serving five years as CFRO, Neil Beaumont left the role at the end of July. During his tenure, Mr. Beaumont built a strong team and helped to strengthen CPP Investments’approach to risk management, with a foundational new Risk Policy, and to enhance the organization’s financial disclosure. Deborah Orida, Senior Managing Director, Global Head of Real Assets & Chief Sustainability Officer (CSO), left the organization in mid-August to become CEO of a Canadian pension fund. During her 13-year career at CPP Investments, Ms. Orida played a significant role in the organization’s success, leading Private Equity Asia, Active Equities and Real Assets before adding the role of CSO.First-Quarter Investment HighlightsCredit Investments Invested US$100 million in the unitranche loan for IGT Solutions.IGT Solutions is a business process outsourcing company specialized in airlines, online ticket agencies and hospitality, with operations primarily in India and the Philippines and clients in North America and Europe. Committed US$160 million to Lumina Strategic Solutions Fund. Lumina is a Brazil-focused special situations credit investment manager. Closed a C$230 million investment in the term loans of Legal Search, a provider of property and corporate-related search services in Australia, the U.K., and the U.S.Private Equity Closed on a US$50 million commitment to Radical Fund III, after previously committing to Fund II as an anchor investor. Radical is an early-stage manager based in Toronto focusing on AI opportunities in Canada and the U.S. Committed US$100 million to Trustar Capital V. Trustar Capital Partners is the private equity affiliate of CITIC Capital focused on control-oriented buyouts in Greater China. Invested US$50 million in a co-investment alongside Silver Lake in Entrata for a 4% stake. Entrata is a developer of property management software that focuses on multi-family residential apartments. Committed €400 million to EQT X. EQT is a global investment organization with €77 billion in assets under management across 36 active funds. Committed to a US$120 million co-investment alongside CVC Capital into Sajjan India Limited, a specialized agrochemical manufacturer in India, for up to a 17% stake. Committed to a US$50 million co-investment alongside Multiples into Acko Tech & Services, India’s only pure-play digital insurance platform focused on retail customers. Once all funding is deployed, we will hold an approximate 5% stake. Closed a US$35 million co-investment alongside CVC Capital into Razer Inc., a global lifestyle brand for gamers, providing gaming peripherals, gaming laptops and desktops, gaming accessories and software solutions worldwide. Made a US$34 million investment alongside Multiples into Kogta Financial Limited, a non-banking financial company focusing on new and used vehicle financing and lending to micro, small and medium enterprises in semi-rural areas in India, for an approximate 9% stake. Closed a US$50 million co-investment in Anaplan alongside Thoma Bravo for an approximate 0.5% stake. Anaplan is a U.S.-based provider of cloud-based planning and analytics software. Invested US$65 million alongside Anchor Equity Partners into Fresheasy, a home meal kit distributor in South Korea, for an approximate 9% stake.Real Assets Acquired 100% of four onshore wind farms in central Sweden through Renewable Power Capital (RPC), our European onshore renewables platform. As part of the transaction, we are committing a further €803 million to RPC. Committed US$300 million to the Hillhouse Real Asset Opportunities Fund (HRAOF). HRAOF aims to invest in the new economy real estate sectors in China focusing on life science, data centres and logistics.Asset Dispositions Agreed to sell six logistics warehouses in Western China in the Goodman China Logistics Partnership (GCLP). Net proceeds from the sale will be approximately C$320 million. GCLP was established with Goodman Group to own and develop logistics assets in mainland China in 2009 and we have an 80% ownership interest in GCLP. Exited Canterra Farmland Holdings LP, which sold its diversified portfolio of farmland, with net proceeds of approximately C$390 million. We originally acquired our 99% stake in 2014.Transaction Highlights Following the Quarter Increased our commitment to BAI, a global communications infrastructure provider, alongside partners Manulife and AIMCo to support BAI’s ongoing growth strategy, including the agreed acquisition of ZenFi Networks. We have committed approximately C$3 billion towards BAI since 2009 and hold an 86% ownership stake. Acquired an additional 33.3% stake in Bullring Shopping Centre in Birmingham, U.K., bringing our stake to 50% for a total equity exposure of C$439 million. Invested an additional US$150 million to Octopus Energy to support its global expansion and renewables strategy. Octopus is a global clean energy technology pioneer based in the U.K. Committed a further US$225 million to expand our strategic partnership with Octopus Energy, and directly support the business’ efforts to accelerate and enhance the development and integration of renewables in the power system. Closed on a €200 million commitment to TDR Capital V. TDR Capital is a private equity firm based in London and focuses on mid-market buyout investments headquartered in or with significant operations in Europe. Committed US$150 million to NewQuest Asia Fund V. NewQuest Capital Partners is a specialized secondaries manager focused on transactions involving middle-market companies and General Partners within emerging Asian markets. Closed on a US$150 million commitment to Oak Hill Capital Partners VI. Oak Hill is a U.S.-based fund manager focused on investing across the industrials, media & communications, business services and consumer sectors in the U.S. Closed on a US$400 million commitment to Apax XI. Apax Partners is a global private equity firm focused on upper middle-market and large-cap buyout opportunities. Committed a further C$700 million to our Indian toll roads portfolio company IndInfravit Trust as part of a transaction to acquire five operating road concessions from Brookfield Asset Management for C$875 million. Closed on an aggregate commitment of US$333 million to Sequoia Capital’s 2022 APAC fundraise, comprising commitments to the Sequoia China funds and the Sequoia India/South East Asia funds. Closed on a US$100 million commitment to Kimmeridge Fund VI. Kimmeridge is a U.S.-based alternative asset manager focused exclusively on the energy sector. Committed an additional US$225 million to KDV II, our second development joint venture with partners ESR and APG. KDV II invests in and develops a best-in-class industrial and warehouse logistics portfolio in the Seoul and Busan metropolitan areas in South Korea. We hold a 45% stake in the joint venture.About CPP InvestmentsCanada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the 21 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2022, the Fund totalled $523 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook or Twitter.DisclaimerCertain statements included in this press release constitute “forward-looking information” within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbors. All such forward-looking statements are made and disclosed in reliance upon the safe harbor provisions of applicable United States securities laws. Forward-looking information and statements include all information and statements regarding CPP Investments’ intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as “trend,” “potential,” “opportunity,” “believe,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions. The forward-looking information and statements are not historical facts but reflect CPP Investments’ current expectations regarding future results or events. The forward-looking information and statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including available investment income, intended acquisitions, regulatory and other approvals and general investment conditions. Although CPP Investments believes that the assumptions inherent in the forward-looking information and statements are reasonable, such statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. CPP Investments does not undertake to publicly update such statements to reflect new information, future events, and changes in circumstances or for any other reason. The information contained on CPP Investments’ website, LinkedIn, Facebook and Twitter are not a part of this press release. CPP INVESTMENTS, INVESTISSEMENTS RPC, Canada Pension Plan Investment Board, L’OFFICE D’INVESTISSEMENT DU RPC, CPPIB and other names, phrases, logos, icons, graphics, images, designs or other content used throughout the press release may be trade names, registered trademarks, unregistered trademarks, or other intellectual property of Canada Pension Plan Investment Board, and are used by Canada Pension Plan Investment Board and/or its affiliates under license. All rights reserved.All figures in Canadian dollars unless otherwise noted.

FAQs

What is the maximum CPP for 2023? ›

The increase in contribution rate is due to the continued implementation of the CPP enhancement. The maximum employer and employee contribution to the plan for 2023 will be $3,754.45 each and the maximum self-employed contribution will be $7,508.90. The maximums in 2022 were $3,499.80 and $6,999.60 respectively.

What percentage will CPP benefits increase in 2023? ›

CPP payments were increased by 6.5% in January 2023, based on the average CPI from November 2021 to October 2022, divided by the average CPI from November 2020 to October 2021.

How much money is in the CPP fund? ›

CPP Investments is one of the world's largest investors in private equity, having invested over US$28.1 billion between 2010 and 2014 alone.
...
Performance.
Date (March 31)Net Asset Value (CAD)¹Rate of Return (annual)²
2019$392.0 Billion+11.1%
2020$409.6 Billion+9.9%
2021$497.2 Billion+20.4%
2022$539 Billion+6.8%
6 more rows

How are CPP assets invested? ›

We are invested globally across public equities, private equities, bonds, private debt, real estate, infrastructure and other areas. We are committed to disclosing timely information about our investment activities.

How do you qualify for maximum CPP benefits? ›

To receive the maximum CPP amount you must contribute to the CPP for at least 39 of the 47 years from ages 18 to 65. You must also contribute the maximum amount to the CPP for at least 39 years based on the yearly annual pensionable earnings (YMPE) set by the Canada Revenue Agency (CRA). The YMPE for 2021 is $66,600.

What is the highest CPP payout? ›

In 2023, the maximum CPP payout is $1,306.57 per month for new beneficiaries who start receiving CPP at 65. Although the max CPP payout is substantial, not everyone gets it. The average CPP in October 2022 was a much lower $717.15 per month, after all.

What rise will pensioners get in 2023? ›

It was suspended in 2022 but is set to be brought back in 2023, much to the relief of pensioners. From April 2023, the state pension will rise by 10.1%.

How much will OAS payments increase in 2023? ›

Between 2022 and 2023, the Old Age Security increase was about 7%. Currently, the Consumer Price Index in Canada is somewhere between 5% and 6%. For this reason, OAS will probably increase by this same rate in 2023.

Will there be an increase in CPP and OAS in 2023? ›

Will seniors get a raise in 2023? Yes, seniors will get a 6.5% increase in CPP payments and a 0.30% increase in OAS payments.

Is CPP a good deal? ›

Remember that CPP is a guaranteed lifetime pension. You get a cheque for as long as you live. And if you have a spouse, your spouse may get part or all of your CPP in the future. Lastly, CPP is an indexed pension which is very hard for any of us to replicate on our own.

Does everyone pay for CPP? ›

Contributions to CPP are compulsory for all working Canadians aged 18-70. Employees and employers contribute equally on earnings that are between the Basic Exemption amount and the Year's Maximum Pensionable Earnings (YMPE). In 2022, contributions on those earnings are 5.7% by employees and 5.7% by employers.

What is the average pension payout per month? ›

According to the Social Security Administration (SSA), a retired couple should expect to receive $2,753 on average in monthly benefits for 2022.

Do you get money back from CPP? ›

If you reported the employee's overpayment on the T4 slip, you can ask for a refund by filling out Form PD24, Application for a Refund of Overdeducted CPP Contributions or EI Premiums. Make your request no later than four years from the end of the year in which the overpayment occurred.

Can you withdraw money from your CPP? ›

Yes. The maximum annual amount that may be withdrawn from a LIF or an RLIF is separate from, and in addition to, any unlocking that is done under the one-time 50%, small account balance or financial hardship options.

How does CPP payout work? ›

The amount you receive each month is based on your average earnings throughout your working life, your contributions to the CPP, and the age you decide to start your CPP retirement pension. Your contributions to the CPP are based on your earnings. The standard age to start the pension is 65.

Is it worth contributing to CPP after 65? ›

Why It Makes Sense To Keep Making Contributions. If you are between the age of 65 and 70 and still working you have an opportunity to continue to contribute to CPP and earn as much as 18% returns on those contributions as Post Retirement Benefits - guaranteed and indexed for the rest of your life.

Is it better to collect CPP at 60 or 65? ›

The standard age to start the pension is 65. However, you can start receiving it as early as age 60 or as late as age 70. If you start receiving your pension earlier, the monthly amount you'll receive will be smaller. If you decide to start later, you'll receive a larger monthly amount.

How long does it take to receive CPP after applying? ›

How long does it take to receive CPP after applying? It takes approximately 7 to 14 days for online applications, 120 days for applications delivered by mail or in-person to a Service Canada Centre.

How long will I receive CPP survivor benefits? ›

If you have been widowed more than once, your benefit will be based upon the scenario that will pay you the highest benefit amount. Even if you re-marry or live common-law, you still get to keep your survivor pension. It's yours until the day you die. A survivor pension is indexed for life.

What is the maximum CPP and EI for 2023? ›

The maximum CPP employee contribution will be $3,754.45—up from $3,499.80 in 2022. The maximum EI premium moves to $1,002.45 in 2023—an increase of about $50.

How much can I earn while on CPP disability 2022? ›

if you earn below $6,600 (before tax), this alone should not affect your disability benefits. if you earn between $6,600 and $18,508.36 (before tax), this may show that you are regularly capable of working and it may affect your disability benefits.

How much will benefits increase in 2023? ›

Here, we explain how much more you'll get. As set out in the government's Autumn Statement last year, benefits are set to increase by 10.1% from April 2023. These changes will help people to meet the rising living costs and energy bills.

Will there be another cost of living payment in 2023? ›

The Department of Work and Pensions (DWP) have confirmed the first two payments will be made in Spring and Autumn 2023, but exact dates are yet to be confirmed.

What will the State Pension be in 2023 2024? ›

The full rates for 2023/24 will be: £203.85 per week for the new State Pension (for those reaching State Pension age on or after 6 April 2016) – up from £185.15 in 2022/23. £156.20 per week for the basic State Pension (the core amount in the old State Pension system) – up from £141.85 in 2022/23.

What are the changes to CPP for 2023? ›

Phase 1: 2019 to 2023

Beginning in 2019 through to 2023, the contribution rate on earnings has increased from 4.95% to 5.95% on the Yearly Maximum Pensionable Earnings (YMPE) which also increases each year.

What is the pension increase for January 2023? ›

As CPI results in a higher increase, DFRDB/DFRB pensioners over the age of 55 will receive an increase of 3.6% for January 2023.

What is the COLA increase for CPP for 2023? ›

2023 CPP rate increase

Line 2: The average of 144.2, 144.0, 145.3, 146.8, 148.9, 149.8, 151.9, 152.9, 153.1, 152.6, 152.7 and 153.8 is divided by the average of 137.7, 137.4, 138.2, 138.9, 139.6, 140.3, 141.0, 141.4, 142.3, 142.6, 142.9, and143.

Will CPP ever increase? ›

The enhancement means that the CPP will begin to grow to replace one third of the average work earnings you receive after 2019. The maximum limit used to determine your average work earnings will also gradually increase by 14% by 2025.

Is CPP disability hard to get? ›

Although CPP Disability Benefits are available for all eligible, it is still quite difficult. Benefits are prioritized according to the severity of the condition, and it may be that at the time you applied, your circumstances were deemed not severe enough.

Does CPP reduce Social Security? ›

If you qualify for Social Security benefits from the United States and a CPP/QPP pension from Canada, and you did not need the agreement to qualify for the U.S. benefit, the amount of your U.S. benefit may be reduced.

What happens if I don't want CPP? ›

By filling out Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election, and giving it to an employer, the employee can either stop or restart their CPP contributions. The employee is responsible for sending an original completed copy of Form CPT30 to the CRA .

How do I avoid paying CPP? ›

If you are at least 65 years of age, but under 70, you can elect to stop contributing to the CPP. If you have both employment and self-employment income, you can elect to stop contributing to the CPP on any employment income earned outside Quebec by completing Form CPT30.

Can you collect Social Security and a pension at the same time? ›

Yes. There is nothing that precludes you from getting both a pension and Social Security benefits. But there are some types of pensions that can reduce Social Security payments. Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine.

How much does the average 65 year old have in retirement savings? ›

The above chart shows that U.S. residents 35 and under have an average of $30,170 in retirement savings; those 35 to 44 have an average $131,950; those 45 to 54 have an average $254,720; those 55 to 64 have an average $408,420; those 65 to 74 have an average $426,070; and those over 70 have an average $357,920.

Is it better to take your pension in a lump-sum or monthly? ›

A monthly pension payment gives you a fixed amount every month over your whole life, so you don't have to worry about changes in the stock market. In contrast, a lump-sum payout can give you the flexibility of choosing where to invest or save your money, and when and how much to withdraw.

When should I stop paying CPP? ›

65 to 70 years of age and working

Starting at age 65, you can choose not to contribute to the CPP . To stop contributing, you must fill out form CPT30 Election to stop contributing to the Canada Pension Plan, or revocation of a prior election.

How much CPP do I pay in 2023? ›

As of 2023, if you earn less than the earnings ceiling, there will be no further rate increases for you. The CPP contribution rate will stay at 5.95% for employers and employees and at 11.9% for people who are self-employed, unless their earnings rise higher than the earnings ceiling.

What are the CPP and EI maximums for 2023? ›

The maximum CPP employee contribution will be $3,754.45—up from $3,499.80 in 2022. The maximum EI premium moves to $1,002.45 in 2023—an increase of about $50.

What is the CPP COLA for 2023? ›

We are pleased to announce that the cost-of-living adjustment (COLA) for 2023 is 6.3% for retired members who retired from the PSPP and their survivors.

What will Max CPP benefit be in 2025? ›

This limit is referred to as the second earnings ceiling. This new range of earnings covered by the Plan will start at the first earnings ceiling (estimated to be $69,700 in 2025) and go to the second earnings ceiling which will be 14% higher by 2025 (estimated to be $79,400).

What is the cost-of-living adjustment for 2023 Canada? ›

Your 2023 inflation adjustment

The annual cost-of-living adjustment for 2023 is 6.3%.

What is the federal government pension indexing for 2023? ›

The pension indexation rate effective Jan. 1, 2023, is 6.3 per cent.

How much CPP will I get at 60? ›

Your payments will decrease by 0.6% each month (7.2% per year) if you start getting the CPP before age 65. If you start at age 60, that means a maximum reduction of 36%. For an average monthly CPP payment at age 65 of $619.75, that means the average monthly amount at age 60 would be reduced to $396.64.

How many months in advance should I apply for CPP? ›

You should apply in advance of when you want your pension to start. How long does it take to receive CPP after applying? It takes approximately 7 to 14 days for online applications, 120 days for applications delivered by mail or in-person to a Service Canada Centre.

How much does CPP increase after 65? ›

Your age affects your pension amount:

If you start after age 65, payments will increase by 0.7% each month (or by 8.4% per year), up to a maximum increase of 42% if you start at age 70 (or after).

What will the 2023 COLA increase be for Social Security? ›

Social Security benefits and Supplemental Security Income (SSI) payments will increase by 8.7% in 2023. This is the annual cost-of-living adjustment (COLA) required by law. The increase will begin with benefits that Social Security beneficiaries receive in January 2023.

How much will SSI disability checks be in 2023? ›

SSI amounts for 2023
RecipientUnrounded annual amounts for—Monthly amounts for 2023
2022
Eligible individual$10,092.40$914
Eligible couple15,136.931,371
Essential person5,057.77458
1 more row

Will disability benefits increase in 2023? ›

Each year, Social Security bases the cost-of-living adjustment (COLA) on changes in the Consumer Price Index. For 2023, Social Security benefits and Supplemental Security (SSI) payments will increase by 8.7%.

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