- Five and 10-year net annualized returns of 10.6% and 8.2%.
- $31.9 billion in cumulative net investment gains above the Reference Portfolio over the last 10 years.
- One-year net return of 12.6% and outperformance of the Reference Portfolio, demonstrating the resilience of our investment portfolio.
MONTRÉAL, June 13, 2025 /PRNewswire/ — The Public Sector Pension Investment Board (PSP Investments) ended its fiscal year on March 31, 2025, with a 12.6% one-year net return, outperforming the one-year Reference Portfolio return by 1.5%. Led by strong performances from the Infrastructure, Private Equity, Public Market Equities, and Credit Investments portfolios, as well as from foreign currency exposure, these results continue PSP Investments’ track record of delivering strong long-term returns and added value through strategic asset allocation and active management decisions. PSP Investments also outperformed its five-year and 10-year benchmarks.
Net assets under management (AUM) grew to $299.7 billion, a 13.2% increase over the previous fiscal year, primarily driven by $33.5 billion of net income. Net transfers reached $1.3 billion, which included $3.2 billion received from the federal government for the funding of the plans and $1.9 billion that PSP Investments transferred back to the Consolidated Revenue Fund from a “non-permitted surplus,” as defined under the Public Service Superannuation Act, which limits the amount the Public Service Pension Fund can be overfunded.
“PSP Investments demonstrated significant organizational capabilities in delivering strong returns and showing resilience in uncertain times,” said Deborah K. Orida, President and CEO at PSP Investments. “We are proud of the excess return we generated over the one-year, five-year and 10-year periods. This demonstrates the strength and resiliency of our portfolio design and the benefits of investing with focus and foresight. We have the right strategy, talent and partners in place to continue to fulfill our important mandate.”
PSP Investments measures success at the total fund level through the following performance objectives:
- Achieve a return, net of expenses, greater than the return of the Reference Portfolio over a 10-year period: By the end of fiscal year 2025, PSP Investments achieved a 10-year net annualized return of 8.2%, which represents $31.9 billion in cumulative net investment gains above the Reference Portfolio and an outperformance of 1.3% per annum. This result was achieved without incurring more pension funding risk than the Reference Portfolio. The 1.3% outperformance represents the value added by PSP Investments from its strategic asset and currency allocation, active management decisions, and careful execution.
- Achieve a return, net of expenses, exceeding the Total Fund Benchmark return over 10-year and 5-year periods: By the end of fiscal year 2025, PSP Investments achieved a 10-year net annualized return of 8.2% against the Total Fund Benchmark return of 7.1%, and a five-year net annualized return of 10.6% against the Total Fund Benchmark return of 9.1%. This represents $18.8 billion in excess net investment gains over 10 years and $13.8 billion in excess net investment gains over five years.
Highlights of portfolio performance by asset class. All figures as at March 31, 2025.
The table below presents the annual, five-year and ten-year annualized performance of the asset classes set out in our Statement of Investment Policies, Standards and Procedures. For a detailed performance analysis of each asset class, please visit investpsp.com or download the annual report.
|
ASSET CLASS |
NET ASSETS UNDER |
ONE-YEAR |
FIVE-YEAR |
TEN-YEAR |
|
Public Market Equities |
$79.7B |
15.1 % |
16.1 % |
9.6 % |
|
Fixed Income |
$66.1B |
10.5 % |
2.1 % |
3.3 % |
|
Private Equity |
$40.7B |
16.6 % |
17.2 % |
11.7 % |
|
Credit Investments |
$30.3B |
15.4 % |
12.1 % |
12.0%2 |
|
Real Estate |
$26.6B |
0.0 % |
1.8 % |
4.9 % |
|
Infrastructure |
$32.0B |
17.8 % |
13.8 % |
13.0 % |
|
Natural Resources |
$17.9B |
8.6 % |
10.0 % |
9.1 % |
|
Complementary Portfolio |
$1.5B |
33.1 % |
13.4 % |
14%3 |
|
____________________________________ |
|
1 This table excludes Cash and Cash Equivalents. All amounts in Canadian dollars, unless stated otherwise. |
|
2 Actualized return since inception (9.3 years). |
|
3 Actualized return since inception (8.2 years). |
Costs
As a long-term investor, we assess our costs in the context of the excess return, net of all costs, achieved over the Reference Portfolio. To this end, PSP Investments generated cumulative net investment gains, net of all costs, of $3.9 billion and $31.9 billion in excess of the Reference Portfolio over the one-year and 10-year period, respectively. To deliver this excess return, PSP Investments incurred operational costs of $790 million, investment costs of $1,609 million and financing costs of $1,465 million during the fiscal year 2025. These are in line with the costs incurred during the previous fiscal year despite a higher AUM and reflect our disciplined approach to cost management.
Consult the Multichannel News Release here: https://www.multivu.com/psp-investments/9337951-en-psp-investments-continues-track-record-strong-returns-portfolio-resilience
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investors with $299.7 billion of net assets under management as of March 31, 2025. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow us on LinkedIn.
