MONTREAL, July 19, 2012 /CNW Telbec/ - The Public Sector Pension
Investment Board (PSP Investments) announced today that its
consolidated net assets increased by $6.5 billion, or 11%, to a record
level of $64.5 billion during the fiscal year ended March 31, 2012
(fiscal year 2012). PSP Investments generated investment income of $1.7
billion after expenses and received $4.7 billion in net contributions.
The total portfolio return for fiscal year 2012 was 3.0%, exceeding the
Policy Portfolio benchmark return of 1.6%. For the three-year period
since the financial crisis of 2008-2009, PSP Investments achieved an
annualized return of 12.7%, generating $16.5 billion in investment
income and $2.4 billion of value added, over and above benchmark
The overall performance for fiscal year 2012 was driven primarily by
strong results in Fixed Income portfolios, Real Estate, US Large Cap
Equity and Private Equity, and was partially offset by the negative
performance of public equities in the Canadian, European and Emerging
markets. Over the course of the year, PSP Investments reduced its
exposure to Public Market equities and increased its exposure to the
Private Market and Real Return asset classes.
"PSP Investments delivered a solid performance in fiscal year 2012, in
the most volatile investment environment since the financial crisis of
2008-2009," said Gordon J. Fyfe, President and Chief Executive Officer.
"In terms of relative performance, a majority of our portfolios
outperformed their respective benchmarks, highlighted by performances
from Real Estate, Public Markets equities and Fixed Income portfolios
which surpassed their benchmarks by a good margin."
For fiscal year 2012, returns on Public Markets Equities ranged from
negative 9.8% for the Canadian Equity portfolio to 11.4% for the US
Large Cap Equity portfolio. The Fixed Income portfolio generated a
return of 10.1% while the return for the World Inflation-Linked Bonds
portfolio was 15.3% for fiscal year 2012.
In Private Markets, the Real Estate and Private Equity portfolios posted
strong investment returns of 13.4% and 7.7%, respectively. The
Infrastructure portfolio earned an investment return of 2.7% while the
newly created Renewable Resources asset class recorded an investment
return of 5.1% for fiscal year 2012.
The asset mix as at March 31, 2012 was as follows: Public Markets
Equities 51.0%, Private Equity 10.0%; Nominal Fixed Income and World
Inflation-Linked Bonds 22.0%; Real Estate 10.9%, Infrastructure 5.6%
and Renewable Resources 0.5%.
For more information about PSP Investments' fiscal year 2012
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 $64.5 billion of
assets under management as of March 31, 2012. 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
For further information:
Vice President, Communications and Government Relations
Tel.: 514 925-5431