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PSP’s private equity portfolio returns 16%

PSP Investments’ private equity return helped grow the pension’s total assets to a record C$76bn during the 12-month period ending 31 March 2013.

The Public Sector Pension Investment Board’s private equity portfolio had a strong fiscal year in 2013, generating a 16 percent return for the 12-month period ending 31 March 2013.  

PSP Investments’ C$6.9 billion (€5.1 billion; $6.6 billion) private equity portfolio represents 9.1 percent of PSP’s total assets. The pension has a target allocation for private equity of 14 percent. 

PSP grew its assets by 18 percent to C$11.6 billion during the 12-month period ending 31 March 2013, bringing PSP’s total assets to a record C$76.1 billion. PSP’s overall return was 10.7 percent for the period, above its 8.6 percent benchmark return. 

“This sustained performance over a period punctuated by lingering economic uncertainty and market volatility indicates clearly that our strategic focus on increased diversification in private markets and internal active management is paying off,” president and chief executive officer of PSP Gordon Fyfe said in a statement. 

PSP added renewable resources to its private markets portfolio in 2011 to invest in “timberland, agriculture and related opportunities”, according to its website.

PSP Investments did not return a request for comment. 

PSP’s private equity portfolio is comprised of fund investments, direct investments and co-investments, and has generated a 7 percent return since inception in 2004.

All of PSP’s investment portfolios generated positive returns during the 12-month period ending 31 March 2013. Private equity’s 16 percent return came in just below the 16.7 return generated by PSP’s renewable resources portfolio, the pension’s highest performing asset class during the period.