The Public Sector Pension Investment Board’s (PSP Investments) infrastructure portfolio posted a 10.1% one-year net return for the 2026 fiscal year-end, helping lift the overall fund to a 6.5% gain despite a 7.3% net loss within its real estate portfolio.
The Canadian pension fund’s C$32bn (€19.7bn) infrastructure portfolio generated a five-year return of 15% compared with the benchmark’s 14.4% during the period, whereas the C$27.8bn real estate portfolio extended its losses over the five-year period, recording a negative 0.5% return against the benchmark’s 10.3%.
Natural resources, which together with real estate and infrastructure make up the pension fund’s C$79.5bn real assets portfolio, recorded a 2.4% return for the one-year period, and an 8.3% five-year return versus 2% for its benchmark.
According to PSP Investments, its infrastructure strategy’s outperformance was driven by operational expertise, strong inflation protection and gains in data centres and transportation assets such as airports and toll roads.
The pension fund said real estate’s five-year performance continues to reflect headwinds in its exposure to alternative sub-sectors, including life sciences and studios, as well as the adverse impact of the interest rate cycle on residential real estate.
The real estate portfolio’s loss in the fiscal year was driven primarily by net valuation losses, corporate leverage impacts and currency movements, which were partially offset by distributed income, PSP Investments said.
PSP Investments said its natural resources portfolio performance during the fiscal year was primarily driven by distributable income, net valuation gains and currency gains, which were partially offset by interest expenses.
The pension fund attributed the portfolio’s long-term results to its extended investment horizon and strong operating performance alongside local partners, noting that the portfolio benefits from significant downside protection and inflation linkage due to its high weighting to land, water, biological and mineral assets.
PSP Investments holds the number one position on the IPE Real Assets Top 50 natural capital investors 2026 ranking. The pension fund places 10th on the Top 100 infrastructure investors 2025 table, while its property exposure puts it at number 28 on the Top 150 Real Estate Investors 2026 league table.
The overall C$320.6bn pension fund portfolio, which also holds public market equities, private equity, credit investments and fixed income, achieved a one-year net return of 6.5% alongside a 10-year net annualised return of 8.8%.
Deborah K Orida, president and CEO, PSP Investments, said: “Despite heightened volatility and uncertainty, PSP Investments delivered solid results and continued to strengthen the long-term funding position of the pension plans we support.
“Our long-term results, the stability of the returns, and the funding of the plans are the best indicators of how we are fulfilling our role as a pension investor.”
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