Key facts
- CPP Investments is actively seeking foreign investors, including central banks and insurance companies, to expand its bond program.
- The pension fund currently has over 1,200 investors and C$98 billion in outstanding debt.
- CPP aims to issue approximately C$20 billion in bonds this year.
- Growth in the bond program is expected to remain around 11% to 12% of CPP's total assets.
- Australia and the United States have been the largest markets for CPP's bond issuance in the first months of the year.
- Canada's triple-A credit rating is a factor attracting foreign investors to its bonds.
Canada's largest pension fund, CPP Investments, is actively seeking to expand its C$100 billion bond program by attracting large foreign investors, including central banks and insurance companies. Manroop Jhooty, Head of Total Fund Management, stated that the fund is focusing more on international markets, with opportunities seen in the U.S., Europe, and Asia.
The program currently boasts over 1,200 investors and C$98 billion in outstanding issuance, with bonds issued in various currencies across Canada, the U.S., and Australia. CPP has issued C$14.5 billion year-to-date and aims for approximately C$20 billion in total issuance this year. The growth of the bond program is expected to mirror the expansion of CPP's overall assets, maintaining a ratio of roughly 11% to 12% of total assets.
Australia has been a primary market for CPP's debt issuance in the early part of the year, with C$5 billion issued, followed by the United States with C$3.4 billion. Canada itself has seen C$2.9 billion in bond issuances from the fund. Jhooty noted that while the growth of the program is a key draw for investors, Canada's international market profile has also contributed to its success.
Foreign investors have shown strong confidence in Canadian federal bonds, with record purchases reflecting Canada's status as one of the few countries maintaining a triple-A credit rating. Jhooty and John Sim, a managing director in the total fund management group, highlighted government initiatives to promote Canada as an investment destination, which has increased international interest in the country's investment landscape.
CPP Investments reported total assets of C$793.3 billion for fiscal 2026, with projections indicating a growth to approximately $4.3 trillion by 2050.