The Public Sector Pension Investment Board is reporting a 12.6 per cent return for the fiscal year ended March 31, 2025, up from 7.2 per cent in the previous fiscal year.
The complementary portfolio, which focuses on investments that aren’t within the mandate of an existing asset class but have strategic benefits to the total fund, returned 33.1 per cent over a one-year period, followed by infrastructure (17.8 per cent), private equity (16.6 per cent), credit (15.4 per cent), public market equities (15.1 per cent) and fixed income (10.5 per cent).
Over a 10-year net annualized return, it achieved an 8.2 per cent return, representing a $31.9 billion cumulative net investment gain above the reference portfolio and an outperformance of 1.3 per cent per year.
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Its net assets under management grew from $264.9 billion by 13.2 per cent to $299.7 billion at the end of the year. The investment organization credited the increase to its net income ($35.5 billion) followed by net transfers ($1.3 billion).
PSP Investments’ current asset mix is led by capital markets (48.7 per cent), followed by private equity (13.6 per cent), infrastructure (10.7 per cent), credit investments (10.1 per cent), real estate (8.9 per cent), natural resources (six per cent), cash and cash equivalents (1.6 per cent) and the complementary portfolio (0.5 per cent).
The investment organization is showing resilience in uncertain times, said Deborah Orida, president and chief executive officer at PSP Investments, in a press release.
“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.”
Read: PSP Investments generates 7.2% annual return, net assets increase to $264.9BN