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
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
For further information:
Vice President, Communications and Government Relations
Tel.: 514 925-5431