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PSP Investments Achieves 12.6% Return, Nears $300B in Assets - InforCapital

PSP Investments posts a 12.6% return for fiscal 2025, with assets nearing $300B and strong performance across major asset classes.

AM
Alvaro de la Maza

Partner at Aninver

Key Takeaways

  • Geography: Canada.

Analysis

The Public Sector Pension Investment Board (PSP Investments) concluded its fiscal year on March 31, 2025, with a robust 12.6% net return, surpassing its Reference Portfolio by 1.5%. This performance was driven by strong results in Infrastructure, Private Equity, Public Market Equities, and Credit Investments, along with favorable foreign currency impacts.

Over the past five and ten years, PSP Investments has achieved net annualized returns of 10.6% and 8.2%, respectively, outperforming its benchmarks and adding significant value through strategic asset allocation and active management.

Net assets under management grew to $299.7 billion, marking a 13.2% increase from the previous fiscal year, primarily due to $33.5 billion in net income. Net transfers totaled $1.3 billion, including $3.2 billion received from the federal government and $1.9 billion returned to the Consolidated Revenue Fund due to surplus limitations under the Public Service Superannuation Act.

"PSP Investments demonstrated significant organizational capabilities in delivering strong returns and showing resilience in uncertain times," said Deborah K. Orida, President and CEO at PSP Investments. "We are proud of the excess return we generated over the one-year, five-year, and ten-year periods. This demonstrates the strength and resiliency of our portfolio design and the benefits of investing with focus and foresight."

Performance Highlights by Asset Class (as of March 31, 2025):

  • Infrastructure: 17.8% one-year; 13.8% five-year; 13.0% ten-year
  • Private Equity: 16.6% one-year; 17.2% five-year; 11.7% ten-year
  • Credit Investments: 15.4% one-year; 12.1% five-year; 12.0% since inception
  • Public Market Equities: 15.1% one-year; 16.1% five-year; 9.6% ten-year
  • Natural Resources: 8.6% one-year; 10.0% five-year; 9.1% ten-year
  • Real Estate: 0.0% one-year; 1.8% five-year; 4.9% ten-year
  • Fixed Income: 10.5% one-year; 2.1% five-year; 3.3% ten-year
  • Complementary Portfolio: 33.1% one-year; 13.4% five-year; 14% since inception