 |
Highlights as of March 31, 2026:
- 10-year net annualized return of 8.8%.
- Net investment income above the reference portfolio totaled $8.6 billion over five years and $14.5 billion over ten years, achieved within the funded risk tolerance.
- Net return of 6.5% for fiscal year 2026.
- Net assets under management grew to $320.6 billion, an increase of $20.9 billion, or 7%.
- Solid track record of investment returns helps drive surplus funding position.
- Operating cost ratio decreased to 24.7 basis points from 27.9 basis points in the prior year.
All figures in Canadian dollars unless otherwise noted.
MONTREAL, June 16, 2026 /CNW/ — The Public Sector Pension Investment Board (PSP Investments) ended its fiscal year on March 31, 2026, with net assets under management of $320.6 billion, up 7.0% from the previous year. The fund posted a one-year net return of 6.5% and a 10-year net annualized return of 8.8%. These results support the long-term sustainability of the pension plans for the federal public service, the Canadian Armed Forces, the Royal Canadian Mounted Police, and the Reserve Force. PSP Investments’ one-year net return exceeded the actuarial discount rate required for the long-term pension obligations of the plans it serves, and the overall funding position of the plans remains strong.
PSP Investments
PSP Investments’ assets under management of $320.6 billion are the result of sustained long-term investment performance combined with ongoing pension plan contributions. Investment returns generated by PSP Investments account for approximately 70% of net assets under management, while funds transferred from the Government of Canada since April 1, 2000, account for the remaining 30%.
“Despite heightened volatility and uncertainty, PSP Investments delivered solid results and continues to strengthen the long-term funding position of the pension plans we support,” said Deborah K. Orida, President and Chief Executive Officer of PSP Investments. “Our long-term performance, the stability of our returns, and the funded status of the plans are the best indicators of how we are fulfilling our role as a pension investor.”
By consistently delivering strong, stable returns over the long term, PSP Investments continues to fulfill its mission of supporting the retirement security of the people who protect and serve Canada.
Long-Term Performance Reinforces Portfolio Resilience
Over the long term, PSP Investments’ strategy continues to create value for contributors and beneficiaries. Over the 10-year period, the fund achieved an 8.8% net annualized return, generating cumulative net investment income of $14.5 billion above the reference portfolio.
PSP Investments’ portfolio is carefully constructed to balance resilience and long-term value creation, achieving a diversified mix of public and private assets, global exposure, and active management. Over time, this diversification serves as a stabilizing mechanism. Over the long term, PSP Investments has a consistent track record of delivering returns above both the reference portfolio and the plans’ actuarial discount rate, while producing more stable results than the reference portfolio across market cycles—a testament to PSP Investments’ value proposition, a key consideration for a pension investor.
One-Year Performance for Fiscal 2026
In fiscal 2026, PSP Investments’ one-year net return underperformed the one-year reference portfolio by 5.2%. Since inception, PSP Investments has outperformed the reference portfolio in approximately 70% of one-year periods. This year’s results were largely driven by macroeconomic and market factors that created a more challenging environment for private markets, as well as the use of public market-based benchmarks that can diverge from private asset performance over shorter time horizons. Currency fluctuations detracted 2.2% during the fiscal year, partially reversing the 5.8% currency gain recorded in fiscal 2025.
“These measures are best evaluated over full market cycles,” said Ms. Orida. “Our portfolio remains well-positioned to deliver long-term value. We are proud of our performance in fulfilling our mandate and our national role. In fiscal 2026, we invested over $10 billion in Canada, driven primarily by increased private direct investments and a higher allocation to Canadian equities, which performed well this year.”
As of March 31, 2026, total assets managed in Canada exceeded $75 billion, reflecting the scale of PSP Investments’ domestic portfolio.
Summary of Portfolio Performance by Asset Class
The table below shows the annual, five-year, and ten-year annualized performance for the asset classes listed in our Statement of Investment Policies, Standards, and Procedures as of March 31, 2026. For a detailed performance analysis of each asset class, please visit investpsp.com or download the annual report.
|
Asset Class |
|
One-Year |
Five-Year |
Ten-Year |
|
Public Market Equities |
$92.8B |
20.6% |
11.4% |
12.3% |
|
Fixed Income |
$71.8B |
2.3% |
3.0% |
3.2% |
|
Private Equity |
$39.1B |
5.3% |
12.7% |
12.0% |
|
Credit Investments |
$35.1B |
3.1% |
10.5% |
11.1% |
|
Real Estate |
$27.8B |
(7.3)% |
(0.5)% |
2.8% |
|
Infrastructure |
$32.0B |
10.1% |
15.0% |
12.7% |
|
Natural Resources |
$19.7B |
2.4% |
8.3% |
8.7% |
|
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|
1This table excludes cash and cash equivalents. All amounts are in Canadian dollars unless otherwise noted. |
Cost Discipline
PSP Investments adheres to high governance standards when making decisions that impact costs. In fiscal 2026, the organization maintained strict discipline over its operating costs, which decreased by $24 million compared to the prior year, reflecting the organization’s continued focus on efficiency and scalable operations. This led to an improvement in operating leverage, with the operating cost ratio declining to 24.7 basis points from 27.9 basis points in fiscal 2025. This result reflects a rigorous approach to cost management, supported by portfolio streamlining and asset sale activities, in line with PSP Investments’ 3-year strategic plan.
In addition to operating costs, PSP Investments’ financing costs and external manager costs were $1.49 billion and $1.533 billion, respectively, driven primarily by portfolio strategy, asset mix, and the use of external managers. Total costs for fiscal 2026 were $3.942 billion, compared to $3.885 billion in the prior year.
As part of its ongoing commitment to cost transparency, PSP Investments also breaks down investment costs by asset class for fiscal 2026 and fiscal 2025.
Canada Growth Fund
Through its wholly owned subsidiary, Canada Growth Fund Investment Management Inc. (CGFIM), PSP Investments continues to serve as the independent and exclusive investment manager of the Canada Growth Fund (CGF), a $15 billion arm’s-length investment fund from the Government of Canada. In fiscal 2026, CGFIM continued to fulfill its mandate to support Canadian economic growth and scale. CGFIM has built a strong execution track record, completing 18 transactions totaling approximately $5 billion in Canadian commitments.
CGF’s assets are held separately and do not impact PSP Investments’ returns or portfolio. For more information on CGF’s activities and performance, please visit https://www.cgf-fcc.ca/en/.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investors, with net assets under management of $320.6 billion as of March 31, 2026. It manages a diversified global portfolio, including investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments. Founded in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police, and the Reserve Force. Headquartered in Ottawa, with principal business offices in Montreal, PSP Investments also has offices in New York, London, and Hong Kong. For more information, visit investpsp.com or follow us on LinkedIn.