Public Sector Pension Investment Board, Montreal, returned 14.5% in the fiscal year ended March 31, spokesman Mark Boutet said.
The C$112 billion ($88.4 billion) pension fund exceeded its policy benchmark return of 13.1% and its best-performing asset class was U.S. large-cap equities at 29.5%, followed by world inflation-linked bonds at 16.9%.
Following those asset classes were: real estate at 12.8%; natural resources, 12.2%; infrastructure, 10.4%; fixed income and private equity, 9.4% each; and Canadian equities, 7.2%.
As of March 31, the actual allocation was 50.2% public markets equities, 17.9% fixed income and world inflation-linked bonds, 12.8% real estate, 9% private equity, 6.3% infrastructure, 2.4% cash and cash equivalents, and 1.4% natural resources.
Long-term targets are 40% public markets equities; 14% private equity; 13% each real estate and infrastructure; 11% fixed income; 5% world inflation-linked bonds; and 2% each cash and cash equivalents, and natural resources.
PSP Investments manages the pension assets of Canadian federal public service workers, Canadian Forces, Reserve Forces and the Royal Canadian Mounted Police.