27 de junio de 2019
  • Miércoles, 26 de Junio
  • 11 de junio de 2019

    PSP Investments Posts 10.7% 10-Year Annualized Rate of Return as Net Assets Under Management Grow by 9.7% to $168 Billio

    Real Estate had $23.5 billion in net assets under management, up by $0.3 billion from the previous fiscal year, and generated $1.7 billion in performance income, resulting in a 7.6% one-year return. Real Estate's focus was on optimizing the portfolio. Net deployments were close to break-even as the group disposed of many core assets with completed business plans in the office and multifamily sectors in the US and non-strategic assets in Brazil and in the US. The group also recapitalized the student housing portfolio in London with Greystar. With a low-yield environment making it more challenging to acquire core assets, the strategy behind a number of acquisitions in North America and emerging markets was value-add or opportunistic. The largest single acquisition was the Downsview airport land in Toronto, which is a long-term re-development project that aligns with Real Estate's build-to-core strategy in primary and growth markets. During fiscal year 2019, Darren Baccus was appointed as Senior Vice President and Global Head of Real Estate and Natural Resources.

    Infrastructure had $16.8 billion in net assets under management, a $1.8 billion increase from the prior fiscal year, and generated $1.1 billion of performance income, leading to a 7.1% one-year return, primarily attributable to investments in the transportation and utilities sectors in Europe and North America. The group deployed $1.7 billion in new direct and co-investments in fiscal year 2019, while disposing of non-strategic investments totalling $0.6 billion. Infrastructure deployment was mostly across Europe and the US. Key investments included the acquisition of a majority interest in Forth Ports, the third-largest port operator by volume in the UK, and the acquisition by Roadis, PSP's road platform, of a controlling interest in two roads located in Portugal. Portfolio geographic diversification evolved with increased exposure to the US market and decreased exposure in Europe, Asia and Oceania.

    Natural Resources had net assets under management of $6.8 billion, an increase of $2.0 billion from the previous fiscal year, and generated performance income of $574 million, for a one-year return of 11.1%. Fiscal year 2019 was marked by continued strong deployment in Australia, North America and selected regions in Latin America with significant investments in new agriculture joint ventures. Notable developments also included the strategic alliance of TimberWest and Island Timberlands, leading to the establishment of Mosaic Forest Management, which enables the shared use of facilities, enhanced forest stewardship and alignment of best practices.

    Total Costs

    PSP Investments' total cost ratio was 67.3 cents per $100 of average net investment assets in fiscal year 2019, compared to 69.8 cents in fiscal year 2018, and 70.5 cents in fiscal year 2017. Operating costs have remained constant at 31.7 cents for fiscal year 2019, the same as for fiscal year 2018. The stability in our cost ratios reflects PSP Investments' focus on enhanced cost management as we achieve our Vision 2021 strategic plan. These ratios can vary year-over-year as they are impacted by net AUM's fluctuations.

    Corporate Highlights

    -- We expanded our global footprint, opening a third international office in Hong Kong to support our global portfolio. Within the framework of our Vision 2021 plan, we significantly scaled our investment strategies, added new asset classes and are well on track to reach over $250.0 billion of assets under management by 2028. -- As part of our One PSP vision, we implemented a total fund approach to our investment strategies, decision-making processes and risk management, while maintaining an entrepreneurial and agile culture. In July, Eduard van Gelderen was appointed as Senior Vice President and Chief Investment Officer, bringing strong market knowledge, investment expertise, international experience and leadership skills. -- We implemented our new and far-reaching Talent Value Proposition to enhance the overall employee experience with a focus on moments that matter in attraction, development, reward and retention, as we continued to make inclusion and diversity a leadership commitment. At PSP Investments, women hold 36.4% of senior positions, while members of visible minority groups represent 18.5% of our Canadian workforce. -- We continued to affirm our commitment to inclusion and diversity (i&D) through the work of our i&D Council, co-chaired by our President and CEO and Chief Human Resources Officer. Our i&D strategy promotes a wide variety of viewpoints and a respectful work environment that encourages and values differences. During fiscal year 2019, 60 very committed PSP employees led at least one major activity for each of our eight affinity groups and leveraged technology to include employees across our Canadian and international offices. -- We deployed our new brand --Spot the edge--across multiple platforms, positioning PSP as an employer, partner and investor of choice. -- We continued to embed environmental, social and governance considerations into every aspect of the investment process, across all asset classes. Accomplishments included achieving key milestones in our multi-year climate change strategy, broadening engagement with public issuers on healthy corporate culture and conduct, and promoting meaningful disclosure practices. Our third annual Responsible Investment Report can be consulted here [https://www.investpsp.com/media/filer_public/documents/PSP-2... ible-investment-report-en.pdf].

    "The Total Fund perspective has been a top corporate priority for PSP since the beginning of Vision 2021," said Eduard van Gelderen, Senior Vice President and Chief Investment Officer at PSP Investments. "Significant progress has been made to lead the organizational shift toward a balanced mix of bottom-up and top-down strategies. We are very pleased to see that the collaboration between the asset classes, the CIO Office and the Risk department has led to new investment insights. This integrated approach remains a top priority in the year to come."

    "Thanks to our expert and diverse team, PSP has developed a worldwide reputation as an investor that spots the edge and has an inclusive and diverse culture," said Mr. Cunningham. "As we enter our twentieth year of operations, our focus on the long-term horizon and on building a world-class team continues to drive our investment efforts on behalf of contributors and beneficiaries who have dedicated their careers to serving Canada."

    For more information on PSP Investments' fiscal year 2019 performance, visit www.investpsp.com [http://www.investpsp.com/]or download the annual report here [https://www.investpsp.com/media/filer_public/documents/PSP-2...].

    All $ are CAD

    About PSP Investments

    The Public Sector Pension Investment Board (PSP Investments) is one of Canada's largest pension investment managers with $168 billion of net assets under management as of March 31, 2019. It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt. Established in 1999, PSP Investments manages net contributions to the pension funds 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 www.investpsp.com [http://www.investpsp.com/]or follow us on Twitter [https://twitter.com/investpsp?lang=en]and LinkedIn [https://www.linkedin.com/company/23319/admin/].

    Media Contacts Maria Constantinescu PSP Investments
    Canada: +1-514-218-3795
    Toll free: +1-844-525-3795
    Email: media@investpsp.ca[mailto:media@investpsp.ca]

    Web site: https://www.investpsp.com/en//

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