CPP Investments Sees Gold in Carney’s Nation-Building Call

The leader of the Canada Pension Plan Investment Board believes there are potential investments for the major funding organization in Prime Minister Mark Carney's vision for extensive, nation-developing initiatives.

The CEO of CPP Investments, John Graham, states that the organization is keen on expanding its portfolio of Canadian assets.

"I'm thrilled because this will result in several intriguing prospects for local investments," Graham stated during an interview on Wednesday.

Carney secured victory in the recent federal election by promising to eliminate internal trade barriers and initiate major projects aimed at strengthening the nation's economic stability.

The prime minister has likewise expressed his openness to constructing additional pipelines should there be nationwide agreement supporting this idea.

Graham mentioned that investing in major infrastructure initiatives across Canada has been difficult; however, he indicated that this situation might be evolving.

"He suggested that there might be the willingness to construct some of these initiatives," pointing towards major infrastructure developments.

Graham's remarks were made following the fund reporting a net return of 9.3 percent for its most recent fiscal year.

As of March 31, the fund amounted to $714.4 billion in net assets, an improvement from the $632.3 billion reported the previous year. This growth encompasses $59.8 billion in net earnings along with $22.3 billion derived from net transfers from the Canada Pension Plan.

The outcome failed to meet the benchmark portfolios' return of 10.9 percent.

CPP Investments manages a worldwide investment portfolio, with 47 percent allocated to the United States versus 12 percent to Canada. As of March 31, 19 percent was placed in Europe, 17 percent in the Asia Pacific area, and 5 percent in Latin America.

Graham mentioned that the part related to the U.S. grew last year because its American assets did well and the U.S. dollar became stronger compared to the Canadian dollar.

CPP Investments reports that their public equities, particularly those in the U.S. and China, achieved gains during the fourth quarter, even with geopolitical and trade challenges present. Meanwhile, contributions from private equities, infrastructure, and credit were beneficial as well. Additionally, the appreciation of foreign currencies relative to the Canadian dollar enhanced overall performance.

When publishing its yearly report on Wednesday, CPP Investments made a pledge to achieve net-zero carbon emissions by 2050. The organization pointed out that there have been recent legal advancements in Canada which introduce fresh perspectives on interpreting these net-zero pledges.

Recent amendments to Canada's Competition Act mandate that businesses must have evidence to back up any environmental assertions they make.

Graham stated that the fund still maintains its conviction regarding the necessity of integrating sustainability into its management practices for the portfolio.

He stated, 'We believe it’s crucial to integrate climate considerations and sustainability into our portfolio from a long-term viewpoint, particularly for those with an extended investment horizon.'

Recently, Canada has seen new legal advancements that introduce fresh perspectives on interpreting net-zero commitments. This shift means we've had to adjust our approach slightly when discussing this topic; however, our actual actions remain unchanged.

The report from The Canadian Press was initially released on May 21, 2025.

Craig Wong from The Canadian Press