Canada

Canada’s Public Sector Pension Investment Board said it invested C$10 billion ($7.2 billion) in the country over 12 months as it pushes ahead with plans to deploy more capital at home. Article content

The pension manager posted a 6.5% return, trailing its benchmark for the 12 months ended March 31, according to its annual report released on Tuesday. Net assets under management rose 7%, to C$320.6 billion. The recent C$10 billion brings the total amount invested in Canada to more than C$75 billion.

“We are working across asset classes to really leverage what I call our home ice advantage,” Chief Executive Officer Deborah Orida said in an interview, using a hockey metaphor.

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Over the past year, the pension fund increased its existing allocation to Canadian equities and also launched a new Canadian public-equity strategy, which will open up opportunities for cross-asset investments.

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The increased investment in Canada comes amid a broader push for the country’s largest pension plans to invest more capital domestically. As part of the effort, Canada’s federal government is laying the groundwork to attract private investment into the country’s airports, opening the door to infrastructure investors that have long sought access to the assets.

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Real estate is “the one asset class where we are going through a strategy shift,” Orida said. The pension fund is moving away from an opportunistic approach to a disciplined strategy focused on core sectors, such as logistics-related real estate and residential. Article content

Also as part of the shift, the pension plan is reducing its exposure to real estate in places like Brazil, Mexico and China, according to the CEO.

Residential investments make up about 30% of PSP’s real estate portfolio, while industrials and offices comprise 27.7% and 19.2%, respectively.

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From the fund's report:

• 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.