Net assets under management as of March 31, 2024 increase to $264.9 billion. Fiscal year ends at March 31, 2024 with one-year return of 7.2%. Ten-year net annualized return of 8.3% leads to $24.5 billion in cumulative net investment gains above Reference Portfolio, indicative of long-term added value through strategic asset allocation and active management decisions. MONTRÉAL, June 17, 2024 /CNW/ - The Public Sector Pension Investment Board (PSP Investments) ended its fiscal year on March 31, 2024, with a 7.2% one-year net portfolio return and with strong performances delivered by the Public Market Equities, Infrastructure, and Credit Investments portfolios. This performance continues PSP Investments' track record of delivering strong long-term returns through a total fund approach to portfolio construction and through the benefits of active management. Net assets under management grew to $264.9 billion, up 8.7% from $243.7 billion at the end of the previous fiscal year. Net transfers received from the federal government represented $3.5 billion and $17.8 billion of net income was generated. PSP Investments takes a long-term investment approach that considers pension funding risk and measures success at the total fund level through the following performance objectives: Achieve a return, net of expenses, greater than the return of the Reference Portfolio over a 10-year period: By the end of fiscal year 2024, PSP Investments achieved a 10-year net annualized return of 8.3%, which represents $24.5 billion in cumulative net investment gains above the Reference Portfolio and an outperformance of 1.1% per annum. Achieve a return, net of expenses, exceeding the Total Fund Benchmark return over 10-year and 5-year periods: By the end of fiscal year 2024, PSP Investments achieved a 10-year net annualized return of 8.3% against the Total Fund Benchmark return of 6.7%, and a five-year net annualized return of 7.9% against the Total Fund Benchmark return of 5.3%. This represents $31.5 billion in excess net investment gains over 10 years and $27.2 billion in excess net investment gains over five years. Focusing on our strengths with coordinated excellence"As we look to the future, we will continue to focus on our strengths to deliver strong long-term performance and a resilient portfolio in the face of external forces that will impact our investment environment," said Deborah K. Orida, President and CEO at PSP Investments. "We are an active global investment organization with proven capabilities to invest across major asset classes on a global scale for the long-term." "We recorded positive returns against a backdrop of the volatility of the last few years dominated by geopolitical uncertainty, inflation and rising interest rates," said Eduard van Gelderen, Senior Vice President and Chief Investment Officer at PSP Investments. "As investors, we strive to build a robust portfolio, capable of withstanding market volatility and navigate a wide range of outcomes so we can consistently meet our mandate. PSP Investments' performance showcases the strength and resilience of our portfolio and the caliber of talent of our people." "PSP Investments is honoured to manage the amounts transferred to us by the government of Canada to help support the pension funds of approximately 900,000 beneficiaries and contributors who have protected and served Canada," added Ms. Orida. "As we pursue our mission and mandate, we are also proud to contribute to the Canadian economy through investments in companies that are creating quality jobs for Canadians, supporting communities, advancing the transition to a low-carbon future, and investing in innovation. Our $56 billion exposure to Canadian assets includes significant investments in public equities, real estate, natural resources, and infrastructure." According to a report released by data platform Global SWF, PSP Investments ranked among the world's top 10 public pension funds and sovereign wealth funds that generated the largest compound annualized returns between 2013 and 2022. The report found PSP Investments had the second largest 10-year annualized rate of return of the Canadian plans who made the list and the sixth-largest 10-year annualized rate of return in comparison to the public pension funds and sovereign wealth funds listed in the report. In fiscal year 2024, PSP Investments delivered on its strategic and operational priorities, effectively enhancing its investment capabilities in an increasingly complex investment environment. The organization continued its cost discipline and strengthened its talent pool to remain competitive in global markets. This approach led to an operating cost ratio of 29.5 bps, which is indicative of PSP Investments' continued commitment to diligent cost management. Investment highlights ASSET CLASS(at March 31, 2024) NET ASSETS UNDER