CPP’s long-term performance has been solid, but it hasn't outpaced key benchmarks like the S&P/TSX Index or gold. Meanwhile, its domestic investment share continues to shrink, while U.S. exposure grows.
🔹 Over the past 20 years, CPP has delivered an annualized return of 7.16% — slightly below gold (8.8%) and the S&P/TSX Index (8%).
🔹 This outcome reflects two key factors:
🔹 In the past decade, CPP’s Canadian investment share has dropped from 31% to just 12%, while exposure to U.S. markets has increased.
🔹 This may be partly due to stronger U.S. equity performance and currency effects, but it also reflects a declining appetite to invest in Canadian assets.
CPP’s allocation to fixed income has decreased from 34% to 25% over the past 10 years. Today, over half of the fund is held in a mix of public and private equities.
🔹 CPP’s performance has been strong, but not exceptional, especially relative to long-term benchmarks.
🔹 The low allocation to Canadian investments (12%) raises some concerns — even if partially justified.
🔹 Introduce a minimum quota for Canadian investments — ideally, at least 25% of the fund should be invested within Canada.
🔹 Allocate at least 2% of the fund to Canadian venture capital firms focused on providing seed funding to startups and underfunded businesses with strong long-term economic potential.
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