One of Canada's largest pension investment managers has announced an increase in its net assets for 2017.
The Public Sector Pension Investment Board (PSP Investments) now has $135.6 billion in net assets under management, compared $116.8 billion in 2016 – an increase of 16.1%.
PSP said its one-year total portfolio net return of 12.8% created $15.2 billion of net income, net of all costs.
This outperforms the policy portfolio benchmark, which generated 11.9% return.
PSP Investments manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt.
It manages contributions to the pension funds of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force.
Andre Bourbonnais, PSP president and chief executive officer, said: "We couldn't be prouder of our team's accomplishments in bringing back double-digit returns and contributing to delivering the pension promises to the contributors and beneficiaries."
"While substantial volatility and international uncertainty remain, we continue to pursue our objective of navigating market fluctuations with a long-term investment horizon and well-diversified global footprint."
PSP's net assets increased by $18.8 billion in fiscal year 2017, attributable to net income, net of all PSP Investments costs of $15.2 billion and net contributions of $3.6 billion.
PSP said other corporate highlights for 2017, include the creation of a dedicated Responsible Investment group and expansion of its in-house capacity to identify and monitor environmental, social and governance (ESG) factors in investment decision-making.
It also opened a European Hub in London (PFI, 12 May).
"Our vision is to be a leading global institutional investor that puts the interests of the contributors and beneficiaries at the heart of everything we do - I am proud of the progress that our employees and partners have made to bring this vision to life," said Bourbonnais.
First published 15.06.2017
Lindsay.sharman@wilmingtonplc.com
