The Public Sector Pension Investment Board (PSP Investments) recorded a 12.6% one-year net return, with strong performance from its infrastructure portfolio helping to offset valuation losses in its real estate portfolio, which was adversely impacted by exposure to the office and residential sectors.
For the fiscal year ended 31 March 2025, the Canadian pension fund’s C$32bn (€20.4bn) infrastructure portfolio generated 17.8% one-year net return. Over a five-year period, the infrastructure portfolio also achieved a 13.8% return, surpassing its benchmark’s 10% during the same period.
PSP Investments ranks seventh place on the IPE Real Assets Top 100 infrastructure investors 2024 rankings.
PSP Investments said its real estate portfolio’s performance for the one-year was 0.03% after the C$26.6bn portfolio was adversely affected by large valuation losses in its heavily weighted office and residential sectors.
For the five-year period, the real estate recorded a 1.8% return, compared with the benchmark’s 5.7% during the same period.
The pension fund ranks number 25 on the IPE Real Assets Top 150 Real Estate Investors 2025 league table.
“Our real estate portfolio was negatively impacted by our large exposure to the office and residential sectors which suffered large valuation losses,” PSP Investments said.
PSP Investments, which holds the number one position on the IPE Real Assets Top 50 natural capital investors 2025 said the C$17.9bn natural resources portfolio generated 8.6% one-year return. For the five-year period, the natural resources posted a 10.0% return, compared with the benchmark’s 0.1% return.
The natural resources portfolio invests in real assets with a focus on timberlands and agriculture.
PSP Investments said that overall the C$300bn pension fund’s fiscal 2025’s 12.6% one-year net return outperformed the one-year reference portfolio return by 1.5 percentage points, led by strong performances from the infrastructure, private equity, public market equities and credit investments portfolios, as well as a postive foreign currency exposure.
Deborah K Orida, president and CEO at PSP Investments, said: “PSP Investments demonstrated significant organisational capabilities in delivering strong returns and showing resilience in uncertain times. We are proud of the excess return we generated over the one-year, five-year and 10-year periods.
“This demonstrates the strength and resiliency of our portfolio design and the benefits of investing with focus and foresight. We have the right strategy, talent and partners in place to continue to fulfill our important mandate.”
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