Public Sector Pension Investment Board, Montreal, which manages C$204.5 billion ($168 billion) as one the largest pension investment managers in Canada, returned a net 18.4% on its investments in the fiscal year ended March 31, a news release Wednesday said.
The Montreal-based PSP Investments exceeded its policy benchmark return of 16.5%, PSP Investments' annual report said.
The best-performing asset class was public market equities, which returned a net of 48.1% compared to its 42.1% benchmark return.
Private equity was the second-best performing asset class, returning net 28.4%, which lagged its 31.7% benchmark return, while natural resources returned net 10.6%, exceeding the 7.7% benchmark return.
Credit investments, meanwhile, returned net 10.5%, above its benchmark return of 9.6%. Infrastructure returned net 4.5%, above its benchmark return of 3.5%. Real estate returned net 3.8%, above its benchmark return of -6%.
Fixed income posted a net return of -2.3%, vs. its benchmark of -3.1%.
As of March 31, the actual allocation for PSP's portfolio was 29.4% public markets, 18.2% fixed income, 15.5% private equity, 13.1% real estate, 9% infrastructure, 7.1% credit investments, 4.7% natural resources, and the rest in cash and cash equivalents.
The overall five-year annualized net return for PSP's investments was 9.3%, above the policy benchmark's 8.3% return. Its 10-year net annualized return of 8.9% was above the return objective of 7.8%.
PSP Investments manages the pension assets of Canadian federal public service workers, Canadian Forces, Reserve Forces and the Royal Canadian Mounted Police.