Investment manager reports strong annual growth
The boss of Canada’s Public Sector Investment Board has expressed his pride in its annual results which have seen a 12.9% growth in net assets.
PSP Investments ended the fiscal year March 31, 2018 with net assets of $153.0 billion, compared to $135.6 billion the previous fiscal year; a one-year total portfolio net return of 9.8% on its investments; and generated $13.5 billion of net income, net of all PSP costs. This return is significantly greater than the Policy Portfolio benchmark return of 8.7%.
"This is a year we can be proud of," said Neil Cunningham, President and Chief Executive Officer at PSP Investments. "We sustained performance over a year marked by market volatility, which shows clearly that our strategic focus on increased diversification is generating returns."
Where PSP gained the most
The results show that PSP Investments saw gains across its portfolio, smashing benchmarks:
- Public Markets had net assets under management of $76.7 billion, a decrease of $0.5 billion from fiscal year 2017, and generated investment income of $6.3 billion, for a one-year return of 8.3%, compared to a benchmark of 7.7%.
- Real Estate had $23.2 billion in net assets under management, up by $2.6 billion from the previous fiscal year, and generated $2.8 billion in investment income, resulting in a 13.6% one-year return versus 12.3% for the benchmark.
- Private Equity had net assets under management of $19.4 billion, $3.5 billion more than in fiscal year 2017, and generated investment income of $2.1 billion, for a one-year return of 12.9%—versus a 3.4% loss in fiscal year 2017—compared to a benchmark return of 17.6%.
- Infrastructure had $15.0 billion in net assets under management, a $3.9 billion increase from the prior fiscal year, and generated $2.3 billion of investment income, leading to a 19.3% one-year return, relative to the benchmark return of 12.1%.
- Private Debt had net assets under management of $8.9 billion, an increase of $4.5 billion from the prior fiscal year, and generated net investment income of $569 million, resulting in an 8.2% one-year return, compared to a benchmark of 2.3%.
- Natural Resources had net assets under management of $4.8 billion, an increase of $1.1 billion from the previous fiscal year, and generated record investment income of $450 million, for a one-year return of 11.2%, versus the 3.1% benchmark.
Talented people helping vision of leading global investor
"Our talented, high-performing people and expanded global footprint have allowed us to spot the edge and deliver solid and consistent results," Mr. Cunningham said. "Our vision is to be a leading global institutional investor, a partner of choice to the investment world and an enabler of complex investments. We have the knowledge, talent, systems and flexibility to seize global opportunities as they arise."