PSP Investments outperforms 10-year benchmarks and posts solid performance in fiscal 2026
The Public Sector Pension Investment Board (PSP Investments) reported that it has concluded its fiscal year on March 31, 2026, with net assets under management totaling $320.6 billion, reflecting a 7.0% increase from the previous year. The fund generated a net return of 6.5% for the year and achieved a 10-year net annualized return of 8.8%. These results underscore the long-term sustainability of pension plans for the federal Public Service, the Canadian Armed Forces, the Royal Canadian Mounted Police, and the Reserve Force.
Approximately 70% of the net assets under management are attributed to investment returns, while the remaining 30% come from fund transfers received from the Government of Canada since April 1, 2000. Deborah K. Orida, President and CEO of PSP Investments, stated that despite the heightened volatility and uncertainty in markets, the organization has reported solid results that help strengthen the pension plans’ long-term funding position.
For fiscal 2026, PSP Investments recorded a one-year net return that was 5.2% below the Reference Portfolio. The organization has historically outperformed the Reference Portfolio on a one-year basis approximately 70% of the time since its inception. This year's performance was impacted by macroeconomic and market conditions that challenged private markets. Currency fluctuations also contributed negatively, accounting for a 2.2% decrease in returns during the fiscal year.
PSP Investments maintained strong cost discipline during fiscal 2026, with operating costs declining by $24 million year-over-year, resulting in an operating cost ratio of 24.7 basis points, down from 27.9 basis points the previous year. In total, operating costs were reported at $3,942 million for fiscal 2026, compared to $3,885 million in the prior year. This performance is part of a broader strategic plan aimed at enhancing efficiency and scalability.
The organization also continues to manage the Canada Growth Fund, an independent investment fund operating at arm's length from the Government of Canada, which has completed 18 transactions totaling approximately $5 billion in Canadian commitments. Established in 1999, PSP Investments is one of Canada’s largest pension investors, managing a diversified portfolio that includes investments across various asset classes worldwide.