CPP Investments, which manages the Canada Pension Plan, has significantly underperformed the broader stock market, posting a slight return of 0.5% in the third quarter of 2025.
The latest return lagged the Toronto Stock Exchange, which had a historic year in 2025, with total returns exceeding 30%, its best annual performance in more than 15 years.
CPP Investments also underperformed markets in the U.S. and Europe during Q3 of last year. The pension plan’s return was also well below its long-term track record.
The fund had a 7% return over the first two quarters of 2025, while its 10-year annualized return stands at 8.4%.
The independent investment manager for the Canada Pension Plan said it ended the third quarter with $780.7 billion in net assets, up from $777.5 billion the previous quarter.
John Graham, chief executive officer (CEO) of CPP Investments, said the fund experienced a volatile quarter amid slowing economic growth and escalating geopolitical tensions.
He added that CPP Investments remains resilient and that it is focused on the long term.
Still, the underperformance is surprising given that Canada’s benchmark stock exchange boomed in 2025 as prices for precious metals such as gold and silver hit all-time highs.
Outside of Canada, stock markets also enjoyed strong returns last year, driven largely by the artificial intelligence (A.I.) trade, with the S&P 500 index in the U.S. advancing 18% on the year.
