Cpp Investments earns 7.8% as benchmark miss stretches to three years

cpp investments earned a 7.8% net return in fiscal 2026, while its benchmark portfolios returned 13.2% and the gap marked a third straight year of underperformance. The fund’s assets reached $793.3 billion by March 31, 2026, so even a small spread versus the benchmark translates into a large swing for retirement savings.

John Graham said the year’s results were affected by geopolitical uncertainty, volatility in the markets, and currency fluctuations. He also pointed to public equities as a key driver of performance, with U.S. holdings doing particularly well as big tech stocks continued to deliver impressive returns.

Public equities lifted returns

7.8% was enough to grow the fund, but not enough to keep pace with the benchmark portfolios’ 13.2% return. That difference matters for a fund of this size because the active strategy is measured against an aggregate of stock market indices, not just against absolute gains.

Public equities led the year’s performance, and the U.S. sleeve stood out most clearly. Big tech stocks helped push those holdings higher, giving the portfolio a lift even as other parts of the market were buffeted by uncertainty and exchange-rate moves.

$793.3 billion after March 31, 2026

$793.3 billion in assets under management marked a sharp increase from $714.4 billion in fiscal 2025. That bigger base raises the stakes for relative performance: a 0.7 per cent advantage over 10 years can look respectable over a full cycle, but a single year’s shortfall against the benchmark still feeds directly into scrutiny of how the portfolio is run.

0.7 per cent was the fund’s 10-year return edge over the benchmark portfolios, according to CPPIB. Graham used that longer horizon to argue for patience, saying, “What matters most for a pension fund serving generations of Canadians is long-term performance, and over the past decade our investment programs have contributed positively to the Fund’s returns”

Graham pay rose to $6.9 million

$6.9 million was Graham’s total compensation in fiscal 2026, up from $6.4 million the year before. Overall personnel expenses also rose by $37 million, adding a cost layer to a year in which the fund did not beat its benchmark.

75 years is the period Canada’s independent chief actuary found the CPP can remain financially sustainable, and that backdrop keeps the pressure on CPPIB to defend its relative performance. Graham said, “Canadians can continue to rely on the CPP as a strong foundation for their retirement income.”