Public Sector Pension Investment Board, Montreal, returned 16.3% for the fiscal year ended March 31, exceeding its 13.9% policy benchmark, said a recently released annual report.
Performance was driven by public equity, private equity, renewable resources, real estate and infrastructure.
Within the public equity portfolio, small-cap equity returned 38.7%, followed by U.S. large-cap equity, 29.5%; EAFE large-cap equity, 28.3%; Canadian equity, 16.1%; and emerging markets equity, 6.1%.
During the same period, private equity returned 24%, exceeding its benchmark by 9.3 percentage points; renewable resources returned 20%, exceeding its benchmark by 14.5 percentage points; real estate was up 12.2%, exceeding its benchmark by 7 percentage points; and infrastructure returned 9.4%, exceeding its benchmark by 4.8 percentage points.
As of March 31, the C$95 billion (US$88.5 billion) board’s actual asset allocation was 52.8% public equity, 17.7% nominal fixed income and world inflation-linked bonds, 11.4% real estate, 9% private equity, 6.4% infrastructure, 1.9% cash and cash equivalents, and 0.8% renewable resources.
The PSP Investment Board oversees investments for the Royal Canadian Mounted Police, Canadian Armed Forces and Reserve Force.