The Public Sector Pension Investment Board (PSP Investments) announced strong financial results for its fiscal year ending March 31, 2026, outperforming long-term benchmarks and demonstrating resilience amid market volatility. Net assets under management grew to $320.6 billion, a 7.0% increase from the previous year, driven by solid investment performance and ongoing pension contributions.
Key Financial Highlights
PSP Investments recorded a one-year net return of 6.5% for fiscal 2026, surpassing the actuarial discount rates required to meet long-term pension obligations. The 10-year net annualized return stood at 8.8%, generating $14.5 billion in cumulative net investment gains above the Reference Portfolio over the decade. Over five years, net gains above the Reference Portfolio totaled $8.6 billion, all achieved within funding risk tolerance.
The fund's operating costs ratio improved to 24.7 basis points (bps), down from 27.9 bps in the prior year, reflecting enhanced efficiency.
Long-Term Performance and Portfolio Strategy
PSP Investments' sustained long-term performance has been instrumental in supporting the pension plans of the federal Public Service, Canadian Armed Forces, Royal Canadian Mounted Police, and Reserve Force. Investment returns account for approximately 70% of net assets under management, while government transfers since April 1, 2000, represent the remaining 30%.
The 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 acts as a stabilization mechanism, delivering returns above the Reference Portfolio and actuarial discount rates while producing more stable outcomes across market cycles.
CEO Statement
“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 of 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 of supporting the retirement security of the people who protect and serve Canada.
