CPPIB Grows CPP Fund to $576 Billion with Active Management
The Canada Pension Plan Investment Board (CPPIB) has successfully grown the CPP Fund from $100 billion in 2006 to $576 billion today, thanks to its active management strategy. This approach has allowed CPPIB to participate in large private transactions, profit from undervalued stocks, and manage climate-related risks.
CPPIB's active management has proven effective. In fiscal 2023, the fund generated $2 billion in net dollar value-added through this strategy. Looking at performance, the CPP Fund has consistently outperformed aggregated reference portfolios on annual, five-, and ten-year periods as of March 31, 2023.
Since its inception in 2006, CPPIB has generated a total of $47 billion in compounded dollar value-added for the CPP Fund. This impressive growth is a testament to CPPIB's long-term investment horizon, significant size, and stable cash flows, which serve as its comparative advantages.
The CPP Fund's remarkable growth, from $100 billion to $576 billion, is a testament to the success of CPPIB's active management strategy. This strategy has not only grown the fund but also ensures its sustainability, contributing to Canada's public policy success story.
