The Public Sector Pension Investment Board is reporting a net return of 4.4 per cent for fiscal 2023.
As of March 31, 2023, the investment organization had $243.7 billion in net assets under management, up 5.7 per cent from $230.5 billion at the end of the previous fiscal year. It also reported a 10-year annualized return of 9.2 per cent and a five-year annualized return of 7.9 per cent, exceeding total fund benchmarks by 1.2 per cent and 2.4 per cent, respectively.
In a press release, PSP Investments attributed its results to the strength of its internal investment management team and its response to shifting market conditions. “These results are indicative of the resilience of our diversified portfolio, the quality of our people and our track record of entrepreneurialism that has supported the development of market-leading capabilities in areas such as infrastructure, natural resources and private credit,” said Deborah K. Orida, the organization’s president and chief executive officer.
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“Forward thinking and smart execution have fuelled past performance and will become even more important in the coming years,” she added.
PSP Investments’ returns were led by infrastructure allocations, which rose by 19 per cent, from $24.7 billion to $29.4 billion. Its allocations to credit investments and natural resources also saw double digit returns, with credit holdings growing by 13.1 per cent, from $23.07 billion to $26.1 billion, and natural resources allocations rising by 10.9 per cent, from $11.0 billion to $12.3 billion.
Private equity gained 3.3 per cent, rising from $34.8 billion to 37.3 billion. Allocations to public markets, including public equities and fixed income, generated returns of 0.3 per cent, rising from $98.2 billion to $98.5.
During the year, PSP Investments also lowered its management expenses by $148 million, which fell from $760 million in 2022 to $612 million in 2023. According to the release, the drop in costs stemmed from the end of the coronavirus pandemic and are closely aligned with expense levels from the preceding years.
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