Latest news with #PublicSectorPensionInvestmentBoard
Yahoo
13-06-2025
- Business
- Yahoo
Public sector pension fund looks for more ways to invest in Canada as U.S. risks grow
The Public Sector Pension Investment Board has been quietly assessing whether it has under-utilized a 'home-ice advantage' and is looking for more ways to invest in Canada, chief executive Deb Orida said, a potentially timely pivot as the United States, a popular destination for pension investments, is looking riskier. The internal look at portfolio design also comes as Ottawa is looking to 'catalyze' billions of dollars in private investment to shore up the economy and reduce dependence on the U.S. 'We're asking (ourselves) whether there's opportunities to leverage our global capabilities in areas like infrastructure here at home,' Orida said as the investment manager for the pensions of federal government workers, the Canadian Forces and the Royal Canadian Mounted Police posted a 12.6 per cent return for the fiscal year that ended March 31, with assets climbing to nearly $300 billion. She said the renewed focus at home stemmed from a wide consideration of factors influencing investing, including geopolitical realignment over the past couple of years, and was not done in direct response to either the Canadian government's desire for stepped-up domestic pension investments or the potential for tax and trade tensions with the U.S. to change the value proposition of investing there. 'It may have all come together at the same time. But really, for us, it's about having the capabilities… better capabilities than we did, say, a decade ago, to make good investments in Canada, because we have this expertise and ability to add value,' she said. International expertise that could be brought to assets in Canada, should they be made available, includes investing in airports and data centres, she said, adding that PSP has a subsidiary that specifically invests and operates airports around the world. Earlier this year, AviAlliance sold a stake in the Budapest airport and purchased three others in the United Kingdom: Aberdeen, Glasgow and Southampton. As for data centres, PSP Investments and Macquarie Asset Management bought a control stake in AirTrunk in 2020 that was profitably sold in 2024 to a consortium of investors led Blackstone. PSP has around $70 billion in investments in Canada, representing about 20 per cent of its portfolio, and that's before including the purchase of a minority stake on Ontario's 407 toll road, a deal that closed this month. Orida said there is not a specific target for increasing domestic investments. Rather, the pension manager will include its new focus on what's it's calling the 'Canada power intersection initiative' in making decisions that maximize returns without taking on undue risk. PSP Investments is also focusing on its platform in Europe. 'We're well positioned in Europe. We have a great team in London,' she said. 'It's a cross-asset class team where we have private equity, real estate, infrastructure, (and) private credit expertise.' As for the United States, she said there has been no decision to pause or pull back on investments there as a result of trade and potential tax developments. But new risks are being taken into consideration, including the potential for new tax costs stemming from a controversial bill making its way through the U.S. Congress, when assessing investments there, she said. 'It's not a black and white turning away. It's rather an incorporation of the additional uncertainty, or risk, or potential implication of changes in tax laws, and then a holistic assessment of the risk adjusted return after factoring in all of that right relative to your other opportunities,' Orida said. The potential changes to years of favourable tax treatment, which may be applied to Canadian investors in the U.S. if the Senate passes the legislation as the House of Representatives has done, are contained in section 899 of a large budget package U.S. President Donald Trump has dubbed 'One Big Beautiful Bill.' How PSP Investments is navigating tumultuous markets PSP Investments posts 4.4% return 'We have analyzed the potential impacts of 899, and looked at different scenarios and analyzed the potential impacts on our existing portfolio,' she said. 'As well, (we have) put thought to how we would incorporate that into new underwritings if there are new underwriting that are attractive, and how we would try to incorporate that uncertainty and potential impact.' • Email: bshecter@
Yahoo
13-06-2025
- Business
- Yahoo
PSP Investments looks to beef up domestic portfolio amid government pressure
The Public Sector Pension Investment Board has been quietly assessing whether it has under-utilized a 'home-ice advantage' and is looking for more ways to invest in Canada, chief executive Deb Orida said, a potentially timely pivot as the United States, a popular destination for pension investments, is looking riskier. The internal look at portfolio design also comes as Ottawa is looking to 'catalyze' billions of dollars in private investment to shore up the economy and reduce dependence on the U.S. 'We're asking (ourselves) whether there's opportunities to leverage our global capabilities in areas like infrastructure here at home,' Orida said as the investment manager for the pensions of federal government workers, the Canadian Forces and the Royal Canadian Mounted Police posted a 12.6 per cent return for the fiscal year that ended March 31, with assets climbing to nearly $300 billion. She said the renewed focus at home stemmed from a wide consideration of factors influencing investing, including geopolitical realignment over the past couple of years, and was not done in direct response to either the Canadian government's desire for stepped-up domestic pension investments or the potential for tax and trade tensions with the U.S. to change the value proposition of investing there. 'It may have all come together at the same time. But really, for us, it's about having the capabilities… better capabilities than we did, say, a decade ago, to make good investments in Canada, because we have this expertise and ability to add value,' she said. International expertise that could be brought to assets in Canada, should they be made available, includes investing in airports and data centres, she said, adding that PSP has a subsidiary that specifically invests and operates airports around the world. Earlier this year, AviAlliance sold a stake in the Budapest airport and purchased three others in the United Kingdom: Aberdeen, Glasgow and Southampton. As for data centres, PSP Investments and Macquarie Asset Management bought a control stake in AirTrunk in 2020 that was profitably sold in 2024 to a consortium of investors led Blackstone. PSP has around $70 billion in investments in Canada, representing about 20 per cent of its portfolio, and that's before including the purchase of a minority stake on Ontario's 407 toll road, a deal that closed this month. Orida said there is not a specific target for increasing domestic investments. Rather, the pension manager will include its new focus on what's it's calling the 'Canada power intersection initiative' in making decisions that maximize returns without taking on undue risk. PSP Investments is also focusing on its platform in Europe. 'We're well positioned in Europe. We have a great team in London,' she said. 'It's a cross-asset class team where we have private equity, real estate, infrastructure, (and) private credit expertise.' As for the United States, she said there has been no decision to pause or pull back on investments there as a result of trade and potential tax developments. But new risks are being taken into consideration, including the potential for new tax costs stemming from a controversial bill making its way through the U.S. Congress, when assessing investments there, she said. 'It's not a black and white turning away. It's rather an incorporation of the additional uncertainty, or risk, or potential implication of changes in tax laws, and then a holistic assessment of the risk adjusted return after factoring in all of that right relative to your other opportunities,' Orida said. The potential changes to years of favourable tax treatment, which may be applied to Canadian investors in the U.S. if the Senate passes the legislation as the House of Representatives has done, are contained in section 899 of a large budget package U.S. President Donald Trump has dubbed 'One Big Beautiful Bill.' How PSP Investments is navigating tumultuous markets PSP Investments posts 4.4% return 'We have analyzed the potential impacts of 899, and looked at different scenarios and analyzed the potential impacts on our existing portfolio,' she said. 'As well, (we have) put thought to how we would incorporate that into new underwritings if there are new underwriting that that are attractive, and how we would try to incorporate that uncertainty and potential impact.' • Email: bshecter@
Bloomberg
13-06-2025
- Business
- Bloomberg
PSP Hunts for More Canada Deals as Assets Surge to $220 Billion
Canada's Public Sector Pension Investment Board is looking to deploy more capital in its home country after years of global expansion that has pushed its investment portfolio to C$300 billion ($220 billion). The pension manager posted a 12.6% return, outperforming its benchmark for the fiscal year ended March 31, according to its annual report released Friday. Investments in public equities — the pension fund's largest asset class — notched a 15.1% gain, while infrastructure earned 17.8%.
Cision Canada
13-06-2025
- Business
- Cision Canada
PSP Investments continues track record of strong returns and portfolio resilience with a 12.6% return in fiscal 2025, net assets approach $300 billion Français
Five and 10-year net annualized returns of 10.6% and 8.2%. $31.9 billion in cumulative net investment gains above the Reference Portfolio over the last 10 years. One-year net return of 12.6% and outperformance of the Reference Portfolio, demonstrating the resilience of our investment portfolio. MONTRÉAL, June 13, 2025 /CNW/ - The Public Sector Pension Investment Board (PSP Investments) ended its fiscal year on March 31, 2025, with a 12.6% one-year net return, outperforming the one-year Reference Portfolio return by 1.5%. Led by strong performances from the Infrastructure, Private Equity, Public Market Equities, and Credit Investments portfolios, as well as from foreign currency exposure, these results continue PSP Investments' track record of delivering strong long-term returns and added value through strategic asset allocation and active management decisions. PSP Investments also outperformed its five-year and 10-year benchmarks. Net assets under management (AUM) grew to $299.7 billion, a 13.2% increase over the previous fiscal year, primarily driven by $33.5 billion of net income. Net transfers reached $1.3 billion, which included $3.2 billion received from the federal government for the funding of the plans and $1.9 billion that PSP Investments transferred back to the Consolidated Revenue Fund from a "non-permitted surplus," as defined under the Public Service Superannuation Act, which limits the amount the Public Service Pension Fund can be overfunded. "PSP Investments demonstrated significant organizational capabilities in delivering strong returns and showing resilience in uncertain times," said Deborah K. Orida, President and CEO at PSP Investments. "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." PSP Investments 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 2025, PSP Investments achieved a 10-year net annualized return of 8.2%, which represents $31.9 billion in cumulative net investment gains above the Reference Portfolio and an outperformance of 1.3% per annum. This result was achieved without incurring more pension funding risk than the Reference Portfolio. The 1.3% outperformance represents the value added by PSP Investments from its strategic asset and currency allocation, active management decisions, and careful execution. 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 2025, PSP Investments achieved a 10-year net annualized return of 8.2% against the Total Fund Benchmark return of 7.1%, and a five-year net annualized return of 10.6% against the Total Fund Benchmark return of 9.1%. This represents $18.8 billion in excess net investment gains over 10 years and $13.8 billion in excess net investment gains over five years. Highlights of portfolio performance by asset class. All figures as at March 31, 2025. The table below presents the annual, five-year and ten-year annualized performance of the asset classes set out in our Statement of Investment Policies, Standards and Procedures. For a detailed performance analysis of each asset class, please visit or download the annual report. ____________________________________ 1 This table excludes Cash and Cash Equivalents. All amounts in Canadian dollars, unless stated otherwise. 2 Actualized return since inception (9.3 years). 3 Actualized return since inception (8.2 years). Costs As a long-term investor, we assess our costs in the context of the excess return, net of all costs, achieved over the Reference Portfolio. To this end, PSP Investments generated cumulative net investment gains, net of all costs, of $3.9 billion and $31.9 billion in excess of the Reference Portfolio over the one-year and 10-year period, respectively. To deliver this excess return, PSP Investments incurred operational costs of $790 million, investment costs of $1,609 million and financing costs of $1,465 million during the fiscal year 2025. These are in line with the costs incurred during the previous fiscal year despite a higher AUM and reflect our disciplined approach to cost management. About PSP Investments The Public Sector Pension Investment Board (PSP Investments) is one of Canada's largest pension investors with $299.7 billion of net assets under management as of March 31, 2025. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments. Established 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, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit or follow us on LinkedIn.
Bloomberg
21-05-2025
- Business
- Bloomberg
HPS Leads Over $3 Billion of Private Debt for Consumer Cellular
A group of private credit firms led by HPS Investment Partners provided more than $3 billion of debt to Consumer Cellular Inc. to refinance its broadly syndicated loans and pay a dividend to its private equity owner GTCR, according to people with knowledge of the matter. Blackstone Inc. and Public Sector Pension Investment Board also participated in the financing for the US mobile network operator, according to the people, who asked not to be identified discussing private information. The entire lender group consisted of more than 10 firms, said the people.
