Canadian pension fund manager Public Sector Pension Investment Board (PSP Investments) reported an overall investment return of 10.7% for the fiscal year ended March 31, 2013, increasing total assets under management to $76.1 billion. Performance was driven primarily by results in public equity portfolios, as well as in private equity, real estate and infrastructure. PSP Investments saw a 16% return on its private equity portfolio in this period, while renewable resources gained 16.7%.
PSP Investments Reports Fiscal Year 2013 Results
MONTREAL, July 18, 2013 /CNW Telbec/ – The Public Sector Pension Investment Board (PSP Investments) announced today that it recorded an investment return of 10.7% for the fiscal year ended March 31, 2013 (fiscal year 2013) with all investment portfolios recording positive investment returns. The solid overall performance for fiscal year 2013 was driven primarily by strong results in Public Market Equity portfolios as well as in Private Equity, Real Estate and Infrastructure. The fiscal year 2013 investment return exceeds the Policy Portfolio return of 8.6%, representing $1.4 billion of value-added over the benchmark return.
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 $7.0 billion after expenses and received $4.6 billion in net contributions.
Over the four years since the global financial crisis of 2008-2009, PSP Investments has achieved an annualized return of 12.2%, generating $23.7 billion in investment income and $3.7 billion of value-added over benchmark returns. The comparable figures for the ten-year period are 8.2%, $25.3 billion and $1.7 billion.
“A solid company-wide effort drove strong results with all asset classes performing well,” said Gordon J. Fyfe, President and Chief Executive Officer. “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. Our investments in Public Markets, Real Estate, Private Equity, Infrastructure and our newest asset class, Renewable Resources, all contributed to value-added over benchmark returns.”
For fiscal year 2013, returns on Public Markets Equities ranged from 4.9% for the Emerging Markets Equity portfolio to 19.2% for the Small Cap Equity portfolio. The Fixed Income portfolio generated a return of 3.4% while the return for the World Inflation-Linked Bonds portfolio was 7.0% for fiscal year 2013.
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 an investment return of 10.1%.
The asset mix as at March 31, 2013 was as follows: Public Markets Equities 52.8%, Nominal Fixed Income and World Inflation-Linked Bonds 20.1%, Real Estate 12.4%, Private Equity 9.1%; Infrastructure 5.1% and Renewable Resources 0.5%.
For more information about PSP Investments’ fiscal year 2013 performance, consult PSP Investments’ Annual Report available at www.investpsp.ca.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with $76.1 billion of net assets under management as of March 31, 2013. Its highly-skilled and dedicated team of professionals manages a diversified global portfolio including public equities, private equity, bonds and other fixed-income securities, real estate, infrastructure and renewable resources. PSP Investments is a Crown corporation established to manage employer and employee net contributions since April 1, 2000, to the pension funds of the federal Public Service, the Canadian Forces and the Royal Canadian Mounted Police, and since March 1, 2007, of the Reserve Force. PSP Investments’ head office is located in Ottawa, Ontario, and its principal business office is in Montréal, Québec. For more information about PSP Investments, visit www.investpsp.ca.
SOURCE: PSP Investments
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