PSP Investments recorded a 10.7% investment return for the fiscal year ended March 31, 2013, due to strong results from its equity and real estate portfolios.
The results exceeded the policy portfolio return of 8.6%, which was $1.4 billion higher than the benchmark return.
Returns on public markets equities ranged from 4.9% for its emerging markets portfolio to 19.2% for the small cap portfolio.
In private markets, all asset classes posted solid investment returns, led by renewable resources and private equity with returns of 16.7% and 16.0%, respectively. Real estate recorded an 11.5% investment return, while the infrastructure portfolio earned a return of 10.1%.
The fixed income portfolio generated a return of 3.4%, and the return for the world inflation-linked bonds portfolio was 7%.
Consolidated net assets increased by $11.6 billion, or 18%, to a record level of $76.1 billion. During fiscal year 2013, PSP Investments generated investment income of $7 billion after expenses and received $4.6 billion in net contributions.
Over the four years since the global financial crisis, the investment manager has achieved an annualized return of 12.2%, generating $23.7 billion in investment income and $3.7 billion above the benchmark returns.
“This sustained performance over a period punctuated by lingering economic uncertainty and market volatility indicates clearly that our strategic focus on increased diversification in private markets and internal active management is paying off,” says president and CEO Gordon J. Fyfe.
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