Highlights at March 31, 2026:
- 10-year net annualized return stands at 8.8%.
- Net investment gains above the Reference Portfolio totalled $8.6 billion over five years and $14.5 billion over ten years, achieved within funding risk tolerance.
- Net return of 6.5% recorded in fiscal 2026.
- Net assets under management grew to $320.6 billion, an increase of $20.9 billion or 7%.
- Track record of solid investment returns helped drive surplus funding positions.
- Operating costs ratio decreased to 24.7 basis points (bps) compared to 27.9 bps in the previous year.
All figures are in Canadian dollars unless otherwise noted.
MONTRÉAL, June 16, 2026 /PRNewswire/ — The Public Sector Pension Investment Board (PSP Investments) ended its fiscal year on March 31, 2026, with net assets under management of $320.6 billion, up 7.0% from the prior year. The fund generated a one-year net return of 6.5% and a 10-year net annualized return of 8.8%. These results support the long-term sustainability of the pension plans of the federal Public Service, the Canadian Armed Forces, the Royal Canadian Mounted Police and the Reserve Force. PSP Investments’ one-year net return exceeded the actuarial discount rates required to meet the long-term pension obligations of the plans it serves, which remain in a strong overall funding position.
PSP Investments’ $320.6 billion in assets under management is the result of sustained long-term investment performance combined with ongoing pension plan contributions. Investment returns earned by PSP Investments represent approximately 70% of net assets under management, while fund transfers received from the Government of Canada since April 1, 2000, represent the remaining 30%.
“Despite heightened volatility and uncertainty, PSP Investments delivered solid results and continued to strengthen the long-term funding position of the pension plans we support,” said Deborah K. Orida, President and CEO, PSP Investments. “Our long-term results, the stability of the returns, and the funding of the plans are the best indicators of how we are fulfilling our role as a pension investor.”
By delivering strong, stable returns over the long-term, PSP Investments continues to fulfill its mission to support the retirement security of the people who protect and serve Canada.
Long-term performance anchors portfolio resilience
Over the long term, PSP Investments’ strategy continues to generate value for contributors and beneficiaries. Over the 10-year period, the Fund delivered a net annualized return of 8.8%, generating $14.5 billion in cumulative net investment gains above the Reference Portfolio.
PSP Investments’ portfolio is deliberately structured to balance resilience and long-term value creation, with a diversified mix of public and private assets, global exposures, and active management. This diversification serves as a stabilization mechanism over time. Over the long term, PSP Investments’ value proposition is demonstrated through a consistent track record of delivering returns above both the Reference Portfolio and the Plans’ actuarial discount rates, while generating more stable outcomes than the Reference Portfolio across market cycles—an important consideration for pension investors.
One-year performance in context
For fiscal 2026, PSP Investments’ one-year net return fell below the one-year Reference Portfolio by 5.2%. PSP Investments has outperformed the Reference Portfolio on a one-year basis approximately 70% of the time since inception. This year’s result was largely driven by macroeconomic and market considerations that created a more challenging environment for private markets, as well as by the use of public-market-based benchmarks, which may diverge from private asset performance over shorter time horizons. Currency movements detracted 2.2% during the fiscal year, partially reversing 5.8% of currency gains recorded in fiscal 2025.
“These measures are best assessed over a full market cycle,” said Ms. Orida. “Our portfolio remains well positioned to deliver long-term value. We are proud of how we have served our mandate and our country this year. In fiscal 2026, we invested over $10 billion in Canada, primarily driven by increased direct private investments and a higher allocation to Canadian equities, which performed well this year.”
As at March 31, 2026, gross assets under management in Canada exceeded $75 billion, reflecting the scale of PSP Investments’ domestic portfolio.
Highlights of portfolio performance by asset class
The table below presents the annual, five-year and ten-year annualized performance of the asset classes set out in our Statement of Investment Policies, Standards and Procedures at March 31, 2026. For a detailed performance analysis of each asset class, please visit investpsp.com or download the annual report.
|
ASSET CLASS |
NET ASSETS UNDER |
ONE-YEAR |
FIVE-YEAR |
TEN-YEAR |
|
Public Market Equities |
$92.8B |
20.6 % |
11.4 % |
12.3 % |
|
Fixed Income |
$71.8B |
2.3 % |
3.0 % |
3.2 % |
|
Private Equity |
$39.1B |
5.3 % |
12.7 % |
12.0 % |
|
Credit Investments |
$35.1B |
3.1 % |
10.5 % |
11.1 % |
|
Real Estate |
$27.8B |
(7.3) % |
(0.5) % |
2.8 % |
|
Infrastructure |
$32.0B |
10.1 % |
15.0 % |
12.7 % |
|
Natural Resources |
$19.7B |
2.4 % |
8.3 % |
8.7 % |
|
________________________ |
|
1 This table excludes Cash and Cash Equivalents. All amounts in Canadian dollars, unless stated otherwise. |
Cost discipline
PSP Investments holds itself to a high standard of governance in making decisions that impact costs. In fiscal 2026, the organization maintained strong discipline over its operating costs, which declined by $24 million compared with the previous year, demonstrating continued focus on efficiency and scalable operations. This resulted in an improved operating leverage, with an operating cost ratio decreasing to 24.7 basis points, compared to 27.9 basis points in fiscal 2025. This outcome reflects a disciplined approach to cost management, supported by portfolio streamlining and asset sales activities, consistent with PSP Investments’ 3-year strategic plan.
In addition to operating costs, PSP Investments incurred financing and external manager costs of $1,490 million and $1,533 million, respectively, which are largely driven by portfolio strategy, asset mix, and the use of external managers. Total costs amounted to $3,942 million in fiscal 2026, compared with $3,885 million in the prior year.
As part of its ongoing commitment to cost transparency, PSP Investments is also presenting investment costs by asset classes for fiscal years 2026 and 2025.
Canada Growth Fund
Through its wholly owned subsidiary, Canada Growth Fund Investment Management Inc. (CGFIM), PSP Investments continues to serve as the independent and exclusive investment manager of the Canada Growth Fund (CGF), a $15 billion independent investment fund, operating at arm’s length from the Government of Canada. In fiscal 2026, CGFIM continued to execute on its mandate to support the growth and scale of Canada’s economy. CGFIM has established a strong track record of execution, with 18 completed transactions totalling approximately $5 billion in Canadian commitments.
The assets of CGF are held separately and do not impact the returns or portfolio of PSP Investments. For more information about the activities and performance of CGF visit https://www.cgf-fcc.ca/en/.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investors with $320.6 billion of net assets under management as of March 31, 2026. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police, and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow us on LinkedIn.
Media Contact: Maria Constantinescu, PSP Investments, Phone: (514) 218-3795, Email: media@investpsp.ca
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