Friday, September 22

CPPIB breaks winning streak with $23-billion loss amid ‘market turbulence’

Uncertain investing in climate and market volatility expected to continue

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The Canada Pension Plan Investment Board, which had been stick-handling economic and market fallout from the COVID-19 pandemic without losses, ended that streak in its first fiscal quarter.

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On Thursday, CPPIB reported a 4.2 per cent loss, equivalent to $23 billion, for the three months ending June 30. Net assets fell to $523 billion from $539 billion, and included an influx of $7 billion from CPP contributions.

“Uncertain business and investment conditions and market turbulence (are) anticipated to continue throughout the fiscal year,” CPPIB, the manager of assets for Canada’s national pension scheme, said in a document accompanying its financial results.

However, it added that the CPP Fund is “well positioned to continue to add value over the long term and successfully navigate market turbulence.”

CPPIB said there was a 52 per cent increase in market volatility in the first quarter from a year earlier, with contributing factors including Russia’s invasion of Ukraine, inflation, supply chain interruptions, and “pandemic spark” volatility, which resulted in significant declines in global volatility equities and bond prices.