Highlights:
Net assets increase by $3.2 billion
10-year net return of 8.4%
32nd Actuarial Report reaffirms long-term financial sustainability of the Canada Pension Plan
TORONTO, Feb. 13, 2026 /CNW/ - Canada Pension Plan Investment Board (CPP Investments) ended its third quarter of fiscal 2026 on December 31, 2025, with net assets of $780.7 billion, compared to $777.5 billion at the end of the previous quarter.
The $3.2 billion increase in net assets for the quarter consisted of $4.0 billion in net income, less $0.8 billion in net Canada Pension Plan (CPP) outflows. CPP Investments routinely receives more CPP contributions than required to pay benefits during the first part of the calendar year, partially offset by benefit payments exceeding contributions in the final months of the year.
The Fund, composed of the base CPP and additional CPP accounts, generated a 10-year annualized net return of 8.4%. For the quarter, the Fund's net return was 0.5%. Since CPP Investments first started investing the Fund in 1999, and including the third quarter of fiscal 2026, it has contributed $543.4 billion in cumulative net income to the Fund.
For the nine-month fiscal year-to-date period, the Fund increased by $66.3 billion consisting of $51.3 billion in net income, plus $15.0 billion in net transfers from the CPP. For the period, the Fund's net return was 7.0%.
"We experienced a volatile quarter amid slowing growth and escalating geopolitical tensions," said John Graham, President & Chief Executive Officer, CPP Investments. "The Fund remained resilient, and we stayed focused and disciplined as a patient investor. To meet obligations to current and future CPP beneficiaries we must hold to our long-horizon perspective and let fundamentals drive our conviction and decisions."
Public equities were the primary contributor to Fund returns in the third quarter, with continued gains in developed market equities. However, gains were more measured than in recent quarters as optimism softened and pricing concerns increased. Private investments, particularly in private equities, credit, and infrastructure, contributed positively to results; external managers also delivered steady performance. As a stronger Canadian dollar reduced the value of foreign investments in Canadian-dollar terms, foreign exchange movements negatively affected the Fund's globally diversified portfolio. CPP Investments intentionally constructs a diversified, globally invested portfolio that is less concentrated than public market indices, supporting the Fund's long-term resilience.
"With that longer-term imperative in mind, the Chief Actuary's latest report provides an independent expert affirmation that the Canada Pension Plan remains financially sustainable until at least the end of the current century," added Mr. Graham. "The report highlights that investment performance of the base CPP over the three-year period since December 31, 2021, was more than $75 billion higher than expected, resulting in a CPP Fund that is substantially larger than projected in the previous actuarial report. This independent confirmation supports the soundness of our long-term investment approach to help support a stable retirement foundation for CPP contributors and beneficiaries for generations to come."
Performance of the Base and Additional CPP Accounts
The base CPP account ended its third quarter of fiscal 2026 on December 31, 2025, with net assets of $705.0 billion, compared to $706.0 billion at the end of the previous quarter. The $1.0 billion decrease in net assets consisted of $3.8 billion in net income less $4.8 billion in net base CPP outflows. The base CPP account's net return for the quarter was 0.5% and the 10-year annualized net return was 8.5%.
The additional CPP account ended its third quarter of fiscal 2026 on December 31, 2025, with net assets of $75.7 billion, compared to $71.5 billion at the end of the previous quarter. The $4.2 billion increase in net assets consisted of $0.2 billion in net income and $4.0 billion in net transfers from the additional CPP. The additional CPP account's net return for the quarter was 0.3% and the annualized net return since inception was 6.1%.
The additional CPP was designed with a different legislative funding profile and contribution rate compared to the base CPP. Given the differences in its 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 its net contribution profile, the additional CPP account's assets are also expected to grow at a much faster rate than those in the base CPP account.
CPP Investments Net Nominal Returns1
(For the period ended December 31, 2025)
Base CPP
Five-Year
7.3 %
10-Year
8.5 %
Additional CPP
Five-Year
4.4 %
Since Inception
6.1 %
1 After CPP Investments expenses.
Long-Term Financial Sustainability
Every three years, the Office of the Chief Actuary of Canada, an independent federal body that provides checks and balances on the future costs of the ...
