Canada Pension Plan Just Dumped 1.3 Million Apple Shares

Canada Pension Plan (CPP), Canada’s largest pension fund by assets managed, dumped over a quarter of its holdings in Apple during the third quarter of 2022 — reports Barron’s.

The Canada Pension Plan Investment Board, which manages the pension, disclosed in Q3 filings with the Securities and Exchange Commission that the fund sold 1.3 million of its 4.8 million Apple shares during the quarter. As of September 30, the fund had $393 billion worth of assets.

Apple stock dipped 22% in the first nine months of the year with the tech sector as a whole taking a wider downturn. However, Apple in October reported record revenue for its September quarter. The iPhone maker’s stock has gained 7% in the quarter so far.

That said, Apple has a less-than-stellar outlook for its holiday quarter, historically its biggest of the year. The company is facing a major supply crunch for its flagship iPhone 14 Pro series due to production disruptions and worker unrest at supplier Foxconn’s largest iPhone assembly plant.

iPhone 14 Pro delivery wait times have slipped past Christmas in the U.S., and Foxconn’s “iPhone City” plant isn’t expected to resume full-scale production until late December or early January.

What’s more, Apple is expecting underwhelming Mac revenue this fiscal quarter as the company didn’t launch any new Mac models in time for the holiday season shopping boom.

Alongside its Apple divestment, Canada Pension Plan also sold almost half of its stake in electric vehicle pioneer Tesla. In addition, the fund shaved almost all of its holdings in Chinese electric automakers NIO, XPeng, and Li Auto.