The Public Sector Pension Investment Board returned 10.9 per cent — or $19.7 billion — across is total portfolio in the 2022 fiscal year.
Between April 1, 2021 and March 31, 2022, the institutional investor’s assets under management grew from $204.5 billion to $230.47 billion, an increase of 12.7 per cent. The results raised PSP Investment’s net annualized rate of return to nine per cent on a five-year basis and 10.8 per cent on a 10-year basis.
“Our 10-year and five-year performance indicates the long-term value we add through patient capital, portfolio construction and active investment activities,” said Eduard van Gelderen, senior vice-president and chief investment officer at PSP Investments, in a press release.
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Private equity was the best performing asset class, with returns reaching 27.6 per cent and the portfolio ballooning to $35.4 billion. Investments in real estate grew in value by 24.8 per cent during the fiscal year, with the total portfolio reaching $31.1 billion.
PSP Investments’ $99.9 billion capital markets portfolio, which includes allocations to both fixed income and public equities, grew by three per cent. Its public equity portfolio reached $59.9 billion, growing by six per cent, while returns from its $40.7 billion fixed income portfolio reached 0.3 per cent.
“The broad diversification of our portfolio across public and private asset classes, industries, geographies and currencies has been a key factor in helping us reduce risk and improve resilience,” said van Gelderen.