PSP Investments Returns 12.6% in Fiscal 2025

Canada’s Public Sector Pension Investment Board on Friday posted a one-year return of 12.6% for its 2025 fiscal year, which ended March 31. Assets of the Canadian pension rose to C$299.7 billion ($220 billion).

The fund outperformed its reference portfolio by 1.5 percentage points and reported five- and 10-year net annualized returns of 10.6% and 8.2%, respectively.

In PSP’s annual report, CEO Deborah K. Orida said that despite market volatility and uncertainty, the fund is well positioned, with ample liquidity and with a focus on delivering returns over the long term despite shifts in global dynamics and economic conditions.

“Our well diversified portfolio encompasses high-quality assets and multiple investment strategies aimed at maximizing long-term returns, managing risks, and building resilience,” Orida said in the statement.

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Unlisted assets were significant drivers of returns for the pension during the year: Infrastructure returned 17.8%; the fund posted a 16.6% return in its private equity portfolio; and credit investments returned 15.4%.

Public market equities returned 15.1% during the year, while fixed income and natural resources returned 10.5% and 8.6%, respectively. A complementary portfolio—accounting for 0.5% of assets, including investments that do not fit within the existing mandates of existing asset classes—returned 33.1%. The fund’s real estate investments were flat, with a 0.0% reported return.

“Despite a deteriorating geopolitical context for business and investing in the past few months, PSP Investments recorded a positive net return of 12.6% in fiscal 2025 against the backdrop of inflation slowly back under control, unexpectedly strong U.S. growth and some monetary easing in various countries leading to strong rallies in most asset classes during the first three quarters of the fiscal year,” PSP Investments’ annual report stated.

As of March 31, PSP Investments allocated 48.7% to capital markets, a portfolio comprising equities and fixed income; 13.6% to private equity; 10.7% to infrastructure; 10.1% to credit investments; 8.9% to real estate; 6.0% to natural resources; and 1.6% to cash and cash equivalents.

PSP Investments manages retirement benefits for the federal public services, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Forces.