CPP Investments’ Assets Reach $675.1 Billion in Q2 FY25 – Amid Market Volatility

The Canada Pension Plan Investment Board (CPP Investments) has announced a significant increase in net assets for the quarter ending September 30, 2024. The global investment manager reported a $28.3 billion rise in net assets, bringing the total to $675.1 billion, up from $646.8 billion in the previous quarter. This growth was attributed to $23.1 billion in net income and $5.2 billion in net transfers from the Canada Pension Plan (CPP), showcasing a robust quarter amidst market volatility.

Q2 2024 Performance

Metric	Value
Net Asset Increase	$28.3 billion
Total Net Assets	$675.1 billion
Net Income	$23.1 billion
Net Transfers from CPP	$5.2 billion

John Graham, president and CEO of CPP Investments, highlighted the stability and resilience of their diversified investment portfolio. He remarked, “Despite heightened market volatility during the quarter, our diversified investment portfolio delivered stable returns, with positive performance across asset classes and geographies. Our focus remains on creating long-term value through market cycles in the best interests of CPP contributors and beneficiaries.”

Divestment from Delhivery

CPP Investments divested its 6 per cent stake in Delhivery, India’s largest third-party logistics company. The sale, which concluded an investment initiated in 2019, generated C$298 million (US$211 million) in net proceeds. This move reflects CPP Investments’ strategic approach to asset rotation and capitalising on high-value exits.

Sale of One Paramount 1 in Chennai

The Canadian firm also sold its stake in One Paramount 1, a Grade-A office development in Chennai, India, for $52 million. This project was part of a joint venture with RMZ Corp, focusing on commercial real estate development. The sale aligns with CPP Investments’ broader strategy to manage and reallocate assets across global markets.

Stake in Perficient

Expanding its North American portfolio, CPP Investments made a $100 million investment for a 5 per cent stake in Perficient, a US-based company specialising in digital strategy and engineering services. Notably, 28 per cent of Perficient’s delivery workforce is based in India, underscoring CPP Investments’ continued interest in leveraging global talent hubs.

Infrastructure Focus

CPP Investments also underscored its commitment to sustainability-focused initiatives and investments in renewable energy and urban infrastructure. Gains in infrastructure and credit investments contributed to the quarter’s strong performance, although the appreciation of the Canadian dollar against the US dollar had a moderating impact on overall returns.

Market Position

Despite ongoing market challenges, including currency fluctuations and economic uncertainties, CPP Investments’ portfolio demonstrated its resilience, delivering positive returns across various asset classes. This stability reinforces CPP Investments’ strategy of pursuing long-term value creation that benefits CPP contributors and beneficiaries.

As CPP Investments continues to diversify its holdings and strengthen its commitment to sustainable investment practices, the outlook remains focused on maintaining robust growth and adapting to evolving global market conditions.

Further Information

CPP Investments remains committed to transparent communication with stakeholders. For more details on quarterly performance and future investment strategies, visit the official CPP Investments website.

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