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PSP Investments delivers solid financial returns in a complex investment environment

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  • Net assets under management as of March 31, 2024 increase to $264.9 billion.
  • Fiscal year ends at March 31, 2024 with one-year return of 7.2%.
  • Ten-year net annualized return of 8.3% leads to $24.5 billion in cumulative net investment gains above Reference Portfolio, indicative of long-term added value through strategic asset allocation and active management decisions.

MONTRÉAL, June 17, 2024 /PRNewswire/ — The Public Sector Pension Investment Board (PSP Investments) ended its fiscal year on March 31, 2024, with a 7.2% one-year net portfolio return and with strong performances delivered by the Public Market Equities, Infrastructure, and Credit Investments portfolios. This performance continues PSP Investments’ track record of delivering strong long-term returns through a total fund approach to portfolio construction and through the benefits of active management.

Net assets under management grew to $264.9 billion, up 8.7% from $243.7 billion at the end of the previous fiscal year. Net transfers received from the federal government represented $3.5 billion and $17.8 billion of net income was generated.

PSP Investments takes a long-term investment approach that considers pension funding risk and measures success at the total fund level through the following performance objectives:

  • Achieve a return, net of expenses, greater than the return of the Reference Portfolio over a 10-year period: By the end of fiscal year 2024, PSP Investments achieved a 10-year net annualized return of 8.3%, which represents $24.5 billion in cumulative net investment gains above the Reference Portfolio and an outperformance of 1.1% per annum.
  • Achieve a return, net of expenses, exceeding the Total Fund Benchmark return over 10-year and 5-year periods: By the end of fiscal year 2024, PSP Investments achieved a 10-year net annualized return of 8.3% against the Total Fund Benchmark return of 6.7%, and a five-year net annualized return of 7.9% against the Total Fund Benchmark return of 5.3%. This represents $31.5 billion in excess net investment gains over 10 years and $27.2 billion in excess net investment gains over five years.

Focusing on our strengths with coordinated excellence
“As we look to the future, we will continue to focus on our strengths to deliver strong long-term performance and a resilient portfolio in the face of external forces that will impact our investment environment,” said Deborah K. Orida, President and CEO at PSP Investments. “We are an active global investment organization with proven capabilities to invest across major asset classes on a global scale for the long-term.”

“We recorded positive returns against a backdrop of the volatility of the last few years dominated by geopolitical uncertainty, inflation and rising interest rates,” said Eduard van Gelderen, Senior Vice President and Chief Investment Officer at PSP Investments. “As investors, we strive to build a robust portfolio, capable of withstanding market volatility and navigate a wide range of outcomes so we can consistently meet our mandate. PSP Investments’ performance showcases the strength and resilience of our portfolio and the caliber of talent of our people.”

“PSP Investments is honoured to manage the amounts transferred to us by the government of Canada to help support the pension funds of approximately 900,000 beneficiaries and contributors who have protected and served Canada,” added Ms. Orida. “As we pursue our mission and mandate, we are also proud to contribute to the Canadian economy through investments in companies that are creating quality jobs for Canadians, supporting communities, advancing the transition to a low-carbon future, and investing in innovation. Our $56 billion exposure to Canadian assets includes significant investments in public equities, real estate, natural resources, and infrastructure.”

According to a report released by data platform Global SWF, PSP Investments ranked among the world’s top 10 public pension funds and sovereign wealth funds that generated the largest compound annualized returns between 2013 and 2022. The report found PSP Investments had the second largest 10-year annualized rate of return of the Canadian plans who made the list and the sixth-largest 10-year annualized rate of return in comparison to the public pension funds and sovereign wealth funds listed in the report.

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In fiscal year 2024, PSP Investments delivered on its strategic and operational priorities, effectively enhancing its investment capabilities in an increasingly complex investment environment. The organization continued its cost discipline and strengthened its talent pool to remain competitive in global markets. This approach led to an operating cost ratio of 29.5 bps, which is indicative of PSP Investments’ continued commitment to diligent cost management.

Investment highlights

ASSET CLASS
(at March 31, 2024)

NET ASSETS UNDER
MANAGEMENT1

ONE-YEAR
RETURN

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FIVE-YEAR
RETURN

TEN-YEAR
RETURN

Public Markets Equities

$55.6B

17.5 %

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10.3 %

9.8 %

Fixed Income

$56.2B

2.9 %

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2.0 %

3.4 %

Private Equity

$40.4B

12.1 %

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14.8 %

11.0 %

Credit Investments

$26.2B

14.2 %

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9.8 %

11.6%2

Real Estate

$27.2B

(15.9) %

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0.9 %

6.1 %

Infrastructure

$34.5B

14.3 %

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12.0 %

12.2 %

Natural Resources

$15.2B

4.1 %

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7.0 %

9.7 %

Complementary Portfolio

$2.4B

20.6 %

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9.8 %

11.5%3

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1 This table excludes Cash and Cash equivalents. All amounts in Canadian dollars, unless stated otherwise.

2 Actualized return since inception (8.3 years).

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3 Actualized return since inception (7.2 years).  

At March 31, 20244:

Capital Markets, comprised of Public Market Equities and Fixed Income, ended the fiscal year with $111.8 billion of net AUM, an increase of $13.3 billion from the end of fiscal year 2023. Public Market Equities, which uses a combination of active and passive strategies as well as alternative investments, ended the fiscal year with a net AUM of $55.6 billion. The five-year annualized absolute return of 10.3% outperformed the benchmark of 8.8%. Over this period, both actively managed public equity investments and alternative investments contributed positively. Fixed Income, managed using a combination of Global Sovereign Interest Rates and Emerging Market Debt, ended the fiscal year with a net AUM of $56.2 billion, an increase of $11.2 billion from the end of fiscal year 2023. Its annualized five-year return of 2.0% outperformed the five-year benchmark of 1.6% due to its strategic management and long-term investment horizon.

Private Equity ended the fiscal year with a net AUM of $40.4 billion and generated portfolio income of $4.5 billion. The five-year annualized return of 14.8% outperformed the benchmark return of 12.1%, showcasing the benefits of well-established partnerships with leading fund managers and the quality of the co-investment portfolio. Private Equity investments in the financials and healthcare sectors strongly contributed to the value-add. The asset class generated over $4.5 billion in cash distributions in fiscal year 2024 for a cumulative total of $32.5 billion over the last five years.

Credit Investments ended the fiscal year with a net AUM of $26.2 billion and generated portfolio income of $3.5 billion. The 9.8% five-year annualized return outperformed the 4.9% benchmark return due to strong credit selection, higher interest spreads versus the benchmark, and fee income. Credit Investments has strong differentiated capabilities due to team expertise in technology, industrials, and healthcare. All three sectors have generated significant outperformance compared to the relevant sector benchmarks. In the fiscal year, the asset class realized $6.2 billion of divestitures, mainly due to higher levels of borrower repricing activity linked to a resurgence of the syndicated loan market.

Real Estate ended the fiscal year with a net AUM of $27.2 billion and generated a portfolio loss of $(5.1) billion. The five-year annualized return of 0.9% outperformed the 0.7% benchmark return, despite this fiscal year’s negative return. The negative revaluation of the portfolio over the last two years was mostly driven by higher interest rates and structural changes. The traditional office sector, particularly in North America, continues to be significantly impacted by a deterioration in occupancy and rents, reflecting uncertainty around the hybrid working model and amplified by the scarcity of available financing. The performance of the impacted sectors was partially mitigated by the global logistics and alternative residential sectors such as student housing.  Pursuant to the revision of the group’s investment strategy, Real Estate continues to prune the portfolio, optimize partner relationships and transact in key sectors and select markets worldwide.

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Infrastructure ended the fiscal year with a net AUM of $34.5 billion and generated portfolio income of $4.3 billion. The five-year annualized return of 12.0% significantly outperformed the 4.5% benchmark return. The portfolio outperformance was primarily driven by strong operating performance, high inflation linkage and downside protection. The portfolio also benefited from the value-add of its platforms, which provide strategic and competitive advantages. Investments in the data center and transportation subsectors, have significantly outperformed, supported by strong fundamentals and favourable market conditions. In fiscal year 2024, the asset class invested $4.0 billion of capital including new investments in Canada that support the energy transition.

Natural Resources ended the fiscal year with a net AUM of $15.2 billion and generated portfolio income of $0.6 billion. The five-year annualized return of 7.0% outperformed the (1.8)% benchmark return. The positive results reflect PSP’s long-term investment horizon and strong operating performance with like-minded, best-in-class, local operating partners. The portfolio also benefited from significant downside protection and inflation linkage. This allowed the portfolio to remain resilient in a rising rates environment that negatively impacted its benchmark.

___________________________________

4 In alignment with PSP Investments’ corporate policy not to hedge foreign currency exposure, the benchmarks for Private Equity, Credit Investments, Real Estate, Infrastructure and Natural Resources are set such that they remain neutral to currency movements, meaning that the actual currency return impact on these asset classes is reflected in the benchmark.

Canada Growth Fund

In spring 2023, PSP Investments was announced by the Government of Canada as the investment manager for the Canada Growth Fund (CGF), a $15 billion investment vehicle established to support the growth of Canada’s clean economy. We are honoured to have been appointed to this role, in recognition of our investment expertise and track record, mature and scalable operational ecosystem, and governance framework that is independent and at arm’s length from the government. CGF is managed separately and independently from PSP Investments’ pension investment mandate.

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Since then, Canada Growth Fund Investment Management Inc., has rapidly ramped up investment management activities, leading to multiple investment announcements in fiscal year 2024. For more information about the activities of CGF, visit https://www.cgf-fcc.ca/ or consult CGF’s first annual report.

Corporate highlights

Our mission, mandate, and strong sense of duty inform our decisions, underpin our success, and shape our strategies and culture. In addition to delivering solid performance and being well positioned for continued growth, PSP Investments continued to make important progress on strategic priorities.

Key accomplishments for the fiscal year 2024:

  • We developed a three-year strategic plan that leverages PSP Investments’ unique strengths as we aim to enhance our capabilities to deliver superior risk-adjusted returns, manage funding risk and execute with coordinated excellence to maintain a high level of stakeholder trust.
  • We further enhanced our climate investing capabilities across asset classes, portfolio construction and enhanced data collection. By integrating material climate change considerations into our investment process, we aim to mitigate risks and capitalize on value creation opportunities in the transition to a low-carbon economy. More details about PSP Investments’ progress on sustainability and climate innovation will become available later this fall as part of our upcoming 2024 sustainability report.
  • We reinforced the importance of our mission and refreshed our core values, emphasizing how they guide our actions and decisions, ensuring that we foster a culture where we can excel, individually and collectively, and tap into our diverse experiences to improve performance.
  • Effective April 1, 2024, Mr. Patrick Charbonneau, President and Chief Executive Officer, Canada Growth Fund Investment Management, joined PSP Investments’ senior management team.

For more information on PSP Investments’ fiscal year 2024 performance, download the annual report here.

About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investors with $264.9 billion of net assets under management as of March 31, 2024. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans 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 investpsp.com or follow us on LinkedIn.

Media Contact : Maria Constantinescu, PSP Investments, Phone: (514) 218-3795, Email: [email protected]

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China remains stabilizing force for global economic growth

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BEIJING, July 20, 2024 /PRNewswire/ — A report from People’s Daily: In the first six months of this year, China’s economy continued its recovery trend and maintained steady progress.

On July 16, the International Monetary Fund (IMF) released an update to its World Economic Outlook, predicting that China’s economic growth rate will be 5 percent in 2024, an upward revision of 0.4 percentage points from the forecast in April.

The stable operation and long-term positive outlook of the Chinese economy have also boosted confidence in global economic recovery.

The IMF believes that Asia’s emerging market economies, represented by countries including China, remain the main engine of the global economy.

China’s economic growth is not only quantitative but also qualitative.

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In the first half of this year, China’s gross domestic product (GDP) grew 5 percent year on year to around 61.7 trillion yuan ($8.49 trillion).

During the period, the country’s total retail sales of consumer goods went up 3.7 percent year on year, with retail sales of services expanding 7.5 percent; investment in infrastructure construction rose 5.4 percent from a year ago while manufacturing investment increased 9.5 percent, signaling burgeoning recovery; and the foreign trade reached a new high, with the goods trade volume reaching 21.2 trillion yuan.

From a medium to long-term perspective, the economic fundamentals that sustain China’s long-term growth remain unchanged, and the trend toward high-quality development in China’s economy has not changed.

China continues to be an important engine and stabilizing force for the world economy.

Facing complex and volatile domestic and international environments, China has maintained stable expansion of its economy and pushed forward industrial upgrading and high-quality development in an orderly manner, spurring the pursuit of high value-added and sustainable economic growth.

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Positive factors driving China’s economic transformation, upgrading, and high-quality development have continued to accumulate.

For instance, the country’s output of smart and green products, such as integrated circuits, service robots, new energy vehicles, and solar panels has maintained double-digit growth in the first half of this year.

Besides, the emergence of new consumption scenarios spawned by new technologies like big data and artificial intelligence as well as new consumption models has driven an 8.8 percent year-on-year increase in China’s online retail sales of physical goods during the period.

Meanwhile, China’s energy consumption per unit of GDP has continued to decline.

“With the global economy facing uncertainties and challenges, China’s role as a stabilizing force is more crucial than ever,” pointed out a recent article by Zamir Ahmed Awan, founding chair of Pakistani think tank Global Silk Route Research Alliance.

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China’s efforts to deepen reforms across the board have injected strong momentum into the country’s high-quality development and pursuit of Chinese modernization.

Since the 18th National Congress of the Communist Party of China (CPC), China has deepened reforms across the board, with efforts concentrated on making reform more systemic, holistic, and coordinated and on stimulating the dynamism, vitality, and potential of high-quality development.

International observers have paid close attention to the third plenary session of the 20th CPC Central Committee. They believe that China’s economy is undergoing a transition from old to new drivers of growth, and that a smooth transition can be guaranteed by further deepening reforms in a comprehensive manner.

Iqbal Survé, chairman of South Africa’s Independent Media, pointed out that China is building a modern industrial system underpinned by advanced manufacturing and pushing forward reforms, which demonstrates the CPC’s foresight, wisdom, courage, and resolve.

By solidly promoting high-standard opening up, China has opened up vast space for economic development.

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During the first six months of this year, China has for the first time released a negative list for cross-border trade in services at the national level, expanded the opening up of value-added telecom services within pilot areas, and introduced new measures to encourage overseas institutions to invest in China’s domestic sci-tech enterprises…

Such policies and measures have demonstrated the country’s resolve to promote reforms and development through opening up.

China is the main trading partner of over 140 countries and regions, with its total volume of foreign trade in goods ranking first globally for seven consecutive years.

China has expanded its circle of friends under the Belt and Road Initiative (BRI) to include more than 150 countries and 30 international organizations, and the ChinaEurope freight train service now reaches over 200 cities in 25 European countries.

In addition, international exhibitions hosted by the country, such as China International Import Expo, China International Fair for Trade in Services, China International Consumer Products Expo, and China International Supply Chain Expo, have served as win-win platforms for mutually beneficial cooperation across different countries.

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A prosperous China not only sustains its own future but also provides opportunities for other countries, said an article published on the website of Argentine newspaper Clarin.

The Chinese economy is overcoming challenges and moving steadily forward along the country’s path of high-quality development, which is a defining feature of Chinese modernization.

Looking forward, China will provide more opportunities for countries worldwide and contribute to the stable and sound development of the global economy as it continuously marches toward modernization.

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RoboSense Sales Volume of LiDAR for ADAS Achieved 487.7% YOY Growth in H1 2024

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HONG KONG, July 19, 2024 /PRNewswire/ — Recently, RoboSense announced its business progress for the first half year of 2024, demonstrating a high-growth trajectory and maintaining its leadership in the global market. For the six months ended June 30, 2024, RoboSense’s sales volume of LiDAR products and LiDAR products for ADAS applications amounted to approximately 243,400 and 234,500 units, separately reflecting a year-on-year increase of 415.7% and 487.7%.

As OEMs rapidly pursued advancements in intelligent technology, RoboSense achieved nearly its 2023 annual sales volume in the first half year of 2024. RoboSense and the global automotive industry’s intelligent upgrade are progressing and succeeding together. This exponential growth underscores RoboSense’s exceptional capabilities in technological innovation and market expansion, reinforcing our trajectory of outstanding growth as an industry leader.

As of June 30, 2024, RoboSense’s cumulative sales volume of LiDAR have reached approximately 583,500 units, with LiDAR for ADAS approximately 518,300 units. Since pioneering the mass production of LiDAR for ADAS in 2021, RoboSense has demonstrated significant growth, with steadily increasing sales that continue to lead the industry’s development.

Leveraging its powerful LiDAR hardware and perception software technology, as well as leading product performance, RoboSense has made remarkable progress in obtaining vehicle model designs and achieving mass production for various vehicle models. As of May 17, 2024, we have received mass production designation orders for 71 vehicle models from 22 global OEMs and Tier 1 customers. By the end of the first quarter of 2024, we have achieved SOP 25 vehicle models from 12 of these customers.

At the 2024 Auto Beijing Show, RoboSense ranked No.1 with equipment for 37 models, and its occupation was over 50%. As more collaborative vehicle models launch and reach mass production, RoboSense repeatedly shatters records.

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In technological innovation and product development, RoboSense continues to launch powerful and technologically advanced products that drive industry progress. In 2024 Q2 and Q3, RoboSense launched the M3, a long-range LiDAR, and the MX, a medium-range LiDAR. In particular, MX gained three new mass production projects shortly after its release, and is expected to realize its first mass production in 2025.

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KuCoin Introduces Omnibus Account Structure to Enhance Liquidity for Brokerage Partners

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VICTORIA, Seychelles, July 19, 2024 /PRNewswire/ — July 23, 2024 – KuCoin, a leading cryptocurrency exchange, is pleased to announce a significant enhancement to its Broker Program, designed to cater to liquidity-seeking partners. This upgraded program enables participants to leverage KuCoin’s superior liquidity and diverse asset offerings across both Spot and Futures markets. With this enhancement, participants can now benefit from KuCoin’s top-tier liquidity, high-revenue shares, unlimited sub-accounts, and independent deposit addresses, allowing for functional flexibility and maintaining their own client management powers.

“Our new brokerage infrastructure is suitable for multiple types of institutional partners, such as crypto exchanges, execution terminals, layer 2 aggregators, OTCs, and traditional financial service providers venturing into crypto,” said Anton Starchenko, Director of Institution Business Development of KuCoin. 

“This upgrade demonstrates our commitment to providing our partners with the tools they need to succeed in the rapidly evolving crypto market.”

By joining the KuCoin brokerage service, brokers gain access to one main broker account with unlimited sub-accounts. Each sub-account features an exclusive deposit address, serving as a wallet to separate funds and trades. Additionally, each sub-account undergoes independent risk checks. These ongoing risk and compliance measures bolster KuCoin’s commitment to protecting partner interests. Broker accounts are subject to separate fee structures, while the broker receives a combined commission based on the cumulative volume across all accounts.

As a leading platform in the cryptocurrency industry, KuCoin is dedicated to providing top-notch security and reliability. The platform employs state-of-the-art security measures, including advanced encryption protocols, multi-factor authentication, and real-time monitoring systems to ensure the safety of users’ assets. KuCoin’s unwavering focus on security and innovation has solidified its reputation as a trusted and forward-thinking exchange in the global crypto market.

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For more information about the KuCoin Broker Program and the new omnibus account structure, please visit KuCoin’s official website.

About KuCoin

Launched in September 2017, KuCoin is a leading cryptocurrency exchange with its operational headquarters in Seychelles. As a user-oriented platform with a focus on inclusiveness and community engagement. It offers over 900 digital assets across Spot trading, Margin trading, P2P Fiat trading, Futures trading, and Staking to its 34 million users in more than 200 countries and regions. KuCoin ranks as one of the top 6 crypto exchanges. KuCoin was acclaimed as “One of the Best Crypto Apps & Exchanges of June 2024” by Forbes Advisor and has been included as one of the top 50 companies in the “2024 Hurun Global Unicorn List”. Learn more at https://www.kucoin.com/ .

Contact Us to Join

Telegram: @KuCoin_Broker

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Email: [email protected]

Book a Product Call here.

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