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PSP’s PE Portfolio Yields 17% Return in 2025
- PSP Investments, a Canadian pension investment manager, reported a 12.6% one-year net return for the fiscal year ending March 31, 2025.
- Over five years, PSP achieved a 10.6% annualized return and an 8.2% return over ten years, outperforming its Reference Portfolio by C$31.9 billion in the last decade.
- The Reference Portfolio is a benchmark set by Canada’s Treasury Board, comprising 59% global stocks and 41% bonds, which PSP aims to beat without adding more risk.
- PSP's private equity portfolio, which makes up 13.6% of its C$300 billion total assets under management, reported C$40.7 billion in net assets and delivered a 16.6% return in fiscal 2025.
- Other asset classes under PSP also performed well: infrastructure at 17.8%, credit investments at 15.4%, and public market equities at 15.1%.
- Real estate returns lagged behind, generating no return over one year and 4.9% over ten years for PSP.
- PSP's private equity strategy involves investments in sectors like financial, healthcare, technology, and communications, with recent partnerships for equity stakes in utility companies.
- The partnership with KKR to acquire a stake in American Electric Power's transmission subsidiaries was valued at around US$2.8 billion.
- Deborah Orida, PSP's president and CEO, praised the organization's strong returns over various periods, highlighting the portfolio's design strength and investment focus.
- PSP Investments, headquartered in Ottawa since 1999, manages pension funds for the federal public service, Canadian Forces, Royal Canadian Mounted Police, and Reserve Force.
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