As outlined in the Public Sector Pension Investment Board (PSP Investments) 2012 Annual Reports, the consolidated net assets increased by $6.5 billion, or 11%, to $64.5 billion during the fiscal year ended March 31, 2012 (fiscal year 2012). PSP Investments generated investment income of $1.7 billion after expenses and received $4.7 billion in net contributions. The total portfolio return for fiscal year 2012 was 3.0%.
The overall performance for fiscal year 2012 was driven primarily by strong results in Fixed Income portfolios, Real Estate, US Large Cap Equity and Private Equity, and was partially offset by the negative performance of public equities in the Canadian, European and Emerging markets. Over the course of the year, PSP Investments reduced its exposure to Public Market equities and increased its exposure to the Private Market and Real Return asset classes.
For fiscal year 2012, returns on Public Markets Equities ranged from negative 9.8% for the Canadian Equity portfolio to 11.4% for the US Large Cap Equity portfolio. The Fixed Income portfolio generated a return of 10.1% while the return for the World Inflation-Linked Bonds portfolio was 15.3% for fiscal year 2012.
In Private Markets, the Real Estate and Private Equity portfolios posted strong investment returns of 13.4% and 7.7%, respectively. The Infrastructure portfolio earned an investment return of 2.7% while the newly created Renewable Resources asset class recorded an investment return of 5.1% for fiscal year 2012.
The asset mix as at March 31, 2012 was as follows: Public Markets Equities 51.0%, Private Equity 10.0%; Nominal Fixed Income and World Inflation-Linked Bonds 22.0%; Real Estate 10.9%, Infrastructure 5.6% and Renewable Resources 0.5%.
For more information about PSP Investments' fiscal year 2012 performance, consult the Public Sector Pension Investment Board 2012 Annual Report on the PSP Investments Annual Reports page.
The Public Sector Pension Investment Board (PSP Investments) is a Crown corporation established to manage employer and employee net contributions since April 1, 2000, to the pension funds of the federal public service, the Canadian Forces and the Royal Canadian Mounted Police, and since March 1, 2007, of the Reserve Force. Please visit PSP Investments for more information.