The Canada Pension Plan had $127.6 billion worth of assets at the end of its fiscal year in March, a sharp increase from the year previous.

The investment board that manages Canada's pension plan said Thursday the fund's assets as of March 31 were $22 billion more than the same time a year earlier.

"The CPP Fund delivered one of its highest-ever annual returns, driven largely by strong public equity markets," said David Denison, president of the CPP Investment Board.

The increase essentially puts the fund back to the level of its all-time high, reached in June 2008.

The gain consisted of $6.1 billion worth of new contributions and $16.2 billion worth of investment gains. The fund was able to use its strong capital base and ability to look past short-term volatility to capitalize on investment opportunities arising after the financial crisis, the fund said in a release.

The fund has now averaged a four per cent annualized gain over the past five years, and a 5.5 per cent gain over the last decade.

Canada’s chief actuary has estimated that an annualized 4.2 per cent real rate of return, or approximately a 6.2 per cent equivalent nominal rate over the last 10 years, will be needed to sustain the CPP at its current contribution rate.