The Public Sector Pension Investment Board (PSP Investments) reported a total portfolio return of 14.5% for the fiscal year ended March 31, 2015.
The fund’s equities, fixed income and private market investments all posted strong results.
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For fiscal 2015, public markets equities returns ranged from 7.2% for the Canadian equity portfolio to 29.5% for the U.S. large cap equity portfolio. The fixed income portfolio generated a return of 9.4% while the return for the world inflation-linked bonds portfolio was 16.9%.
Private market investments also performed well. Real estate and natural resources led the way with returns of 12.8% and 12.2%, respectively. Infrastructure posted a 10.4% investment return while the private equity portfolio investment return was 9.4%.
Net assets at the end of fiscal 2015 exceeded the $100-billion threshold to a record $112 billion.
For the 10-year period ended March 31, 2015, PSP Investments’ net annualized investment return reached 7.6% or 5.8% after inflation, significantly above the net long-term rate of return objective used by the chief actuary of Canada for the public sector pension plans, which averaged 6% or 4.2% after inflation for the period.
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