Public Sector Pension Investment Board’s (PSP Investments) infrastructure portfolio recorded a strong fiscal 2020 performance in a period when market declines due to the global COVID-19 pandemic dragged the C$169.8bn (€110.4bn) manager’s real estate portfolio into negative territory.
The manager’s C$18.3bn infrastructure portfolio was its best performing investment bucket, posting an 8.7% one-year return compared with -3.2% for the benchmark.
PSP Investments’ C$23.8bn real estate portfolio fell -4.4% over the year, a performance the Canadian manager said was marked by COVID-19, which generally had a negative effect on the overall portfolio.
The value of its global retail portfolio and more specifically the malls in the US were negatively impacted by the pandemic, said PSP Investments.
Neil Cunningham, president and CEO at PSP Investments, said: “In these difficult times, we want to reassure contributors and beneficiaries about our solid long-term financial performance that sustains the pensions of those who have served our country.”
Private equity and credit investments gained 5.2% and 4.3% respectively, whereas the manager’s public market equities and natural resources investments fell 3% and 5.2% respectively, leading to a one-year total portfolio net return of -0.6%.
“We built our investment portfolio and organisation to be resilient and diversified,” said Cunningham.
“This approach has made a difference during the health crisis the world is currently experiencing.”
Eduard van Gelderen, senior vice president and CIO at PSP Investments, said: ”Our focus on the long-term horizon has served us well during the global pandemic and has become more important than ever.
“Before the pandemic, we were preparing for an eventual market downturn after many years of sustained growth in order to be able to respond quickly if a crisis occurred. Our strategies have proven their effectiveness in maintaining our portfolio’s stability and liquidity during tumultuous times.”
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