A Discussion With PSP Investments' CEO on Their Fiscal Year 2026 Results
The Public Sector Pension Investment Board boosted its investments in Canadian stocks and some infrastructure assets to help guard against inflation as the fund earned a 6.5-per-cent return in a volatile year for markets.
PSP’s private-asset investments in real estate, credit and private equity struggled in its last fiscal year, keeping with a trend that has seen large institutional investors lag behind their benchmark targets even as public stock markets have surged in value.
As a result, the fund fell short of its internal benchmark of 13.1 per cent, and a reference portfolio of assets set by the federal government, which earned 11.7 per cent.
PSP manages pensions for the federal public service, Canadian Armed Forces and the RCMP. As of March 31, when its fiscal year ended, it manages net assets of $320.6-billion, up 7 per cent from the prior year.
In anticipation of higher volatility and inflation, PSP increased its allocation to Canadian equities by two percentage points as a share of its $92.8-billion stock portfolio, which gained 20.6 per cent.
The pension fund, which increases its payments to retirees as inflation rises, also put more money into infrastructure assets that offer strong protection against broader increases in prices.
Canadian stocks help an investor such as PSP offset inflation’s effects because they are tied to companies that earn higher revenues as prices rise. And many infrastructure assets have revenue streams based on contracts that increase payments as inflation rises.
“We’re in a new investment regime, right? Uncertainty is higher, volatility is higher,” PSP’s chief executive officer Deborah Orida said in an interview.
PSP also reduced its exposure to the U.S. dollar, which was the main driver of currency fluctuations that reduced the fund’s overall investment gains by 2.2 per cent for the fiscal year. In the previous fiscal year, currency gains gave PSP a 5.8-per-cent tailwind, and the U.S. dollar is still a “meaningful exposure” in its portfolio, Ms. Orida said.
But she added that the dollar’s power as a safe haven “has been impacted” by recent events in the world.
PSP invested $10-billion in Canada during the fiscal year, in both stocks and privately owned assets, and Ms. Orida said she is “excited about what we are seeing” as the federal government adopts a more proactive approach to attracting investment to the country.
PSP said its 6.5-per-cent investment gain in the fiscal year exceeded the rate needed to meet its long-term obligations to pensioners, according to actuarial calculations.
Over 10 years, the fund’s average annual return is 8.8 per cent, which beat a benchmark of 8.4 per cent and the reference portfolio’s 8.2-per-cent gain.
A $2.1-billion loss on real estate assets, which were down 7.3 per cent, was the biggest drag on PSP’s results in the fiscal year. Ms. Orida said the pension fund is shifting from an “opportunistic approach to a more disciplined, focused strategy” that will invest in fewer sectors across core countries.
After a prolonged drought for real estate deals, she said PSP is “starting to see opportunities” to sell some of the assets it holds.
PSP’s investments in private credit also had a weak year, earning 3.1 per cent, which the pension fund attributed in part to lower valuations on loans amid a rise in concerns about lenders’ exposure to technologies that could be disrupted by artificial intelligence.
The private credit sector is reckoning with a cohort of loans made in 2021 and 2022, often with aggressive financing structures and high levels of debt.
“You’re seeing the whole industry kind of digest that,” Ms. Orida said. And “for sure there’s some of those in the portfolio, we’re not immune.”
The fund’s private equity assets gained 5.3 per cent, as that sector also struggles. But PSP did reap $8.6-billion in cash distributions during the fiscal year, by selling and refinancing private equity assets, as well as selling stakes in funds to other investors.
PSP is now at its target allocation in private equity, which means it is “not a forced seller,” Ms. Orida said, and “positions us well as the market resets.”
Layan Odeh of Bloomberg also reports pension fund deploys C$10 billion at home in 'buy Canada' push:
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.
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.
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.
“We’re seeing the opportunity to leverage those high level meetings that we’re having with Canadian corporates to also bring in our teams from infrastructure and private credit,” Orida said.
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.
PSP is “well-positioned” to bring both capital and operating expertise to airport investments, Orida said. Public equities returned 20.6% during the fiscal year ended March 31, while infrastructure investments gained 10.1%. The pension plan said it is exposed to the software sector through its investments in private equity and credit, which delivered 5.3% and 3.1% in returns, respectively.
Asked whether PSP has invested in SpaceX, Orida declined to discuss specific holdings. She said understanding the disruptive potential of companies such as SpaceX remains important for long-term investors.
“We do the work around those names because it’s important to understand what potential disruptive threats may be coming on the horizon,” she said.
Strategy Shift
PSP’s real estate portfolio lost 7.3% during the period. The decline was driven by markdowns and currency movements, according to the report.
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.
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.
Earlier today, PSP Investments released its fiscal 2026 results:
Highlights at March 31, 2026:
- 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.
All figures are in Canadian dollars unless otherwise noted.
Montréal, Canada (June 16, 2026) – The Public Sector Pension Investment Board (PSP Investments) ended its fiscal year on March 31, 2026, with net assets under management of $320.6 billion, up 7.0% from the prior year. The fund generated a one-year net return of 6.5% and a 10-year net annualized return of 8.8%. These results support the long-term sustainability of the pension plans of the federal Public Service, the Canadian Armed Forces, the Royal Canadian Mounted Police and the Reserve Force. PSP Investments’ one-year net return exceeded the actuarial discount rates required to meet the long-term pension obligations of the plans it serves, which remain in a strong overall funding position.
PSP Investments’ $320.6 billion in assets under management is the result of sustained long-term investment performance combined with ongoing pension plan contributions. Investment returns earned by PSP Investments represent approximately 70% of net assets under management, while fund transfers received from the Government of Canada since April 1, 2000, represent the remaining 30%.
“Despite heightened volatility and uncertainty, PSP Investments delivered solid results and continued to strengthen the long-term funding position of the pension plans we support,” said Deborah K. Orida, President and CEO, PSP Investments. “Our long-term results, the stability of the returns, and the funding of the plans are the best indicators of how we are fulfilling our role as a pension investor.”
By delivering strong, stable returns over the long-term, PSP Investments continues to fulfill its mission to support the retirement security of the people who protect and serve Canada.
Long-term performance anchors portfolio resilience
Over the long term, PSP Investments’ strategy continues to generate value for contributors and beneficiaries. Over the 10-year period, the Fund delivered a net annualized return of 8.8%, generating $14.5 billion in cumulative net investment gains above the Reference Portfolio.
PSP Investments’ portfolio is deliberately structured to balance resilience and long-term value creation, with a diversified mix of public and private assets, global exposures, and active management. This diversification serves as a stabilization mechanism over time. Over the long term, PSP Investments’ value proposition is demonstrated through a consistent track record of delivering returns above both the Reference Portfolio and the Plans’ actuarial discount rates, while generating more stable outcomes than the Reference Portfolio across market cycles—an important consideration for pension investors.
One-year performance in context
For fiscal 2026, PSP Investments’ one-year net return fell below the one-year Reference Portfolio by 5.2%. PSP Investments has outperformed the Reference Portfolio on a one-year basis approximately 70% of the time since inception. This year’s result was largely driven by macroeconomic and market considerations that created a more challenging environment for private markets, as well as by the use of public-market-based benchmarks, which may diverge from private asset performance over shorter time horizons. Currency movements detracted 2.2% during the fiscal year, partially reversing 5.8% of currency gains recorded in fiscal 2025.
“These measures are best assessed over a full market cycle,” said Ms. Orida. “Our portfolio remains well positioned to deliver long-term value. We are proud of how we have served our mandate and our country this year. In fiscal 2026, we invested over $10 billion in Canada, primarily driven by increased direct private investments and a higher allocation to Canadian equities, which performed well this year.”
As at March 31, 2026, gross assets under management in Canada exceeded $75 billion, reflecting the scale of PSP Investments’ domestic portfolio.
Highlights of portfolio performance by asset class
The table below presents the annual, five-year and ten-year annualized performance of the asset classes set out in our Statement of Investment Policies, Standards and Procedures at March 31, 2026. For a detailed performance analysis of each asset class, please visit investpsp.com or download the annual report.
ASSET CLASS
NET ASSETS UNDER MANAGEMENT (1)
ONE-YEAR RETURN
FIVE-YEAR RETURN
TEN-YEAR RETURN
Public Market Equities
$92.8B
20.6%
11.4%
12.3%
Fixed Income
$71.8B
2.3%
3.0%
3.2%
Private Equity
$39.1B
5.3%
12.7%
12.0%
Credit Investments
$35.1B
3.1%
10.5%
11.1%
Real Estate
$27.8B
(7.3)%
(0.5)%
2.8%
Infrastructure
$32.0B
10.1%
15.0%
12.7%
Natural Resources
$19.7B
2.4%
8.3%
8.7%
1. This table excludes Cash and Cash Equivalents. All amounts in Canadian dollars, unless stated otherwise.
Cost discipline
PSP Investments holds itself to a high standard of governance in making decisions that impact costs. In fiscal 2026, the organization maintained strong discipline over its operating costs, which declined by $24 million compared with the previous year, demonstrating continued focus on efficiency and scalable operations. This resulted in an improved operating leverage, with an operating cost ratio decreasing to 24.7 basis points, compared to 27.9 basis points in fiscal 2025. This outcome reflects a disciplined approach to cost management, supported by portfolio streamlining and asset sales activities, consistent with PSP Investments’ 3-year strategic plan.
In addition to operating costs, PSP Investments incurred financing and external manager costs of $1,490 million and $1,533 million, respectively, which are largely driven by portfolio strategy, asset mix, and the use of external managers. Total costs amounted to $3,942 million in fiscal 2026, compared with $3,885 million in the prior year.
As part of its ongoing commitment to cost transparency, PSP Investments is also presenting investment costs by asset classes for fiscal years 2026 and 2025.
Canada Growth Fund
Through its wholly owned subsidiary, Canada Growth Fund Investment Management Inc. (CGFIM), PSP Investments continues to serve as the independent and exclusive investment manager of the Canada Growth Fund (CGF), a $15 billion independent investment fund, operating at arm’s length from the Government of Canada. In fiscal 2026, CGFIM continued to execute on its mandate to support the growth and scale of Canada’s economy. CGFIM has established a strong track record of execution, with 18 completed transactions totalling approximately $5 billion in Canadian commitments.
The assets of CGF are held separately and do not impact the returns or portfolio of PSP Investments. For more information about the activities and performance of CGF visit https://www.cgf-fcc.ca/en/.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investors with $320.6 billion of net assets under management as of March 31, 2026. 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
You can read PSP's F2026 annual report here.
I did have a chance to catch up with Deborah Orida yesterday to go over the results but before I get to my discussion, some tidbits from the annual report.
First, the highlights:
Next, the asset mix with geographic exposures:
Also, it is worth reading Chair Maryse Bertrand's message:
I note the following:
Management identified rapid technology evolution as a key external force when the corporate strategy was developed several years ago. This past year, we saw the impact of that evolution— specifically AI—on where we invest, how we work, and how we prepare for the years ahead. PSP Investments remains fully committed to modernizing its technology foundation and readying the organization for a world increasingly driven by AI.
In this context, I would like to highlight the work of the Board’s Special Project Oversight Committee, established in fiscal 2026 to focus on PSP Investments’ multi-year technology transformation initiative. The Committee brings together directors with significant experience with large-scale technology projects, who meet regularly with project leaders in between Board meetings to ensure the initiative is managed with the rigour and accountability that its scale and strategic importance demand. Their work is a good example of the type of practical, engaged, and constructive governance we strive for, and I am grateful to the Committee members for their contributions.
The Board also spent time on PSP Investments’ evolving approach to deepening the integration of material sustainability-related factors across the investment lifecycle. Our view is that sustainability considerations should be embedded in our investment processes to strengthen the assessment of potential material risks and opportunities. The Board will continue to ensure that integration proceeds with the measured and grounded approach our mandate requires.
Next, read CEO Deborah (Deb) Orida's message:
Fiscal 2026 performance
For the fiscal year ended March 31, 2026, our net return was 6.5%, a result that reflects the resilience of our portfolio in volatile markets and rigorous execution by our investment teams.
PSP Investments’ one year net return exceeded the actuarial discount rates required to meet the long-term pension obligations of the plans it serves, which remain in a strong overall funding position. And our track record of solid investment returns helped drive long-term value for the contributors and beneficiaries whose retirement we support.
In a 12-month period marked by significant market concentration in a handful of mega-capitalized tech companies, dramatic geopolitical disruption, and volatility in both public and private markets, our diversified portfolio performed as designed, delivering solid absolute returns while demonstrating the resilience that investing with focus and foresight is built to provide.
Resilience across market cycles
While annual performance is important, the funding of the pension plans we support and our long-term results are the best indicators of how we are fulfilling our role as a pension investor. Over the last 10 years, we have earned net annualized returns of 8.8%, outperforming the Reference Portfolio and generating $14.5 billion of excess cumulative net investment gains.
Resilience should be measured over cycles, not months or quarters. The strength of our long-term performance continues to underpin a strong overall funding position for the pension plans we support. This is a clear and important measure of whether we are delivering on our mandate. For example, the most recent actuarial determination for the federal public service pension plan confirmed it remains in a position of significant surplus at 125.5%.
Advancing our strategy
Progress across how we invest, how we operate, and how we lead continues to strengthen our organization. This fiscal year, we made deliberate choices that strengthen PSP’s ability to fulfill its mandate over the long term. These are the kinds of choices that compound—together they build the institutional resilience required to ensure that as markets move, our commitment endures.
Investing with focus and foresight
In fiscal 2026, we continued to sharpen our portfolio approach: placing greater emphasis on delivery of exposures, portfolio design, and long-term risk-adjusted returns. In practice, that means making strategic choices about where PSP’s expertise, conviction, and capital are optimally aligned. This included acting on our conviction that inflation volatility would persist and increasing our allocation to Canadian public equities and High Inflation Correlated Infrastructure, which targets assets with defensive, predictable, and inflation- linked cash flows. For example, in fiscal 2026, we formed a strategic partnership with a Canadian corporate champion—BCE (see details on page 23)—to create a bespoke financial instrument, not available in public markets, matched to PSP’s long-term liabilities.
This fiscal year, we also leveraged our strengths to respond to changing market conditions. This included the launch of our Infrastructure debt and Investment Grade private credit strategies—a new, formalised investment capability that brings together the expertise of our Infrastructure and Credit Investments teams. This collaboration demonstrates what becomes possible when deep sector expertise and structuring capability are brought together. Through this combined capability, we are able to source proprietary opportunities, structure senior, high-quality investment-grade debt, and deploy capital at scale, aligned with our long-term objectives.
Strengthening our exposure to assets with long-duration characteristics is also about actively managing the opportunities embedded within our portfolio. One example of this active asset management and value creation potential is demonstrated by the success of our wholly owned subsidiary AviAlliance, one of the world’s leading airport investors and operators. This platform continues to give us a depth of operational expertise that few infrastructure investors can match. That expertise, developed over years of owning and operating airports, informs how we evaluate and pursue infrastructure opportunities wherever they arise.
Deb also added this on values which we also discussed in our conversation:
None of this progress would be possible without the quality and commitment of the entire PSP team. Inspired by our mission, we continued in fiscal 2026 to ensure that how we work reflects who we serve. We welcomed new senior leaders who brought fresh perspectives and strengthened our collective capabilities, while deepening the alignment and cohesion of our executive team. Culture underpins our collective performance. It is a standard that shapes how we make decisions, how we collaborate, and how we hold ourselves accountable to one another and to the people we serve.
This year, we took concrete steps to embed our corporate values—living the mission, excelling together, and being accountable—into our operating practices. Our values are now fully integrated into our performance and talent cycle. Aligning incentives, performance, and leadership expectations in service of our mandate means accountability is reinforced systematically.
Our mission, to support the retirement of the people who protect and serve Canada, remains our most important compass. It clarifies our priorities, guides our resource allocation, and reminds us of the responsibility we carry
And for those of you who are not aware of who sits on PSP's executive team, here you go:
What else? Here are the benchmarks used to evaluate asset class performance:
I also think it's worth reading the details on total fund performance analysis on pages 46-47 of the annual report:
Read it all here (I know, it's long and not always easy to read, just like CPP Investments' report but trust me, it's worth reading these reports).
Discussion With CEO Deborah Orida
Let me jump into my discussion with Deborah (Deb) Orida.
I want to thank her for taking some time to talk to me on Monday, and also thank Maria Constantinescu for setting up the Teams meeting and sending me the press release ahead of time on an embargoed basis.
Deb began by giving me a general overview:
I think we talked about last year, when we delivered 12.6%. You can't do that every year, especially with the risk appetite that we properly have as a pension investor. I also agree with you that 6.5% is not bad. It's probably middle of the pack relative to our peers and exceeds the actuarial discount rate for the funding of the plan.
But you know we're not missing the opportunity to reflect this year in our portfolio design, as we think about our portfolio design and our investment strategies.
I then jumped right into it, stating the results largely came in line with what I expected but Real Estate’s -7.3% return shocked me, it really stood out.
I also noted that PSP, La Caisse and NBIM participated in a TPG-led deal recently to acquire ECHO Realty and it seems like the strategy has shifted in real estate to more partnership-led investments.
Deb responded:
You're right to point out real estate, because that's the one area where, as you well know, relative to our peers in the other asset classes, even those outside some of the asset classes that are facing challenges. We've still, on a relative basis (to peers), performed well. Real estate is the outlier, and we are shifting our strategy in real estate. We're going from what was a more, I'll call it opportunistic approach to a more focused, disciplined strategy, where we're focusing on our core sectors, our core geographies. We're reducing our exposure in areas like Brazil, Mexico, China, and where we're also, to your point, focusing on global strategic partners like TPG. We didn't have an operating real estate platform like Teachers' or La Caisse, it's always been more of a real estate investing approach, but the strategy is moving from opportunistic to focused and strategic
I noted that this made sense to me as I always thought PSP was taking way too much opportunistic real estate risk (especially 20 years ago when I was there). At over $300 billion AUM, you need to focus more on core real estate and partner up with top strategic partners that are able to bring great deals to the table.
[Note: Why don't Canada's Maple 8 ever publish a detailed breakdown of their real estate strategies so we know how much opportunistic risk they're taking there?]
I then shifted my focus to private equity where Deb noted this:
I'll talk about private equity and private credit together, because, as you know, those are both asset classes in different parts of the capital structure in the same market, given that the private credit often provides financing for the private equity sponsors.
What we saw in both private equity and private credit this year was the impact of the 2021-22 vintages when the market goes in cycles, and at that time you saw high multiples, high leverage, aggressive financing terms that meant that there was mark-to-market on those vintages.
This year that impacted both private equity and private credit, and I think that in some ways there's a bit of a reset going on in in the private equity market, where they've always talked about value creation, but the reality, as you know, is that for the last bunch of years, the asset class had the benefit of multiple expansion, cheap leverage, and multiple expansion, and our view is that we should not be counting on that going forward.
I'm very glad that we have, since Simon Marc came in 2015 a private equity strategy that is a combined team doing both fund commitments and investing alongside fund commitments, as opposed to the separate funds team and a direct team. I think that having the right partnerships with deep industry expertise and strong local networks to be able to add value to generate returns in private equity is what we're going to need going forward.
I can't argue with that approach, as I stated in my last comment on BCI's new proactive PE approach, things remain very challenging in that asset class.
I asked Deb if the Private Credit team is based in London and where they invest, and she replied:
The private credit team is based in New York and London. About 75% of private credit exposure is in North America, and the other 25% in Europe. That's a team that we established back in 2015 so private credits been the flavor of the month recently, we've been doing it for over 10 years, and as you'll see from the annual report, the inception-to-date returns continue to be over 11% from that asset class.
There we did see, as has been widely reported, a flood of money from retail into that asset class, which, frankly, you know, led to some undisciplined capital deployment, and as a long term participant in the market we actually think that the reset with some of the retail capital sort of understanding that it's not a liquid asset class.
We think that's healthy for the market, because now we're seeing, opportunities with lower leverage, better terms for better businesses, without retail-funded funds looking to write really big checks on terms that we don't think are as attractive,
I totally agree with her there. Private Credit makes a lot more sense for an institutional investor with long-dated liabilities and long investment horizon than retail investors, even high-net-worth investors.
I noted Andrew Alley was named the Global Head of Infrastructure at PSP Investments back in February and asked her if that asset class is undergoing a change in strategy.
Deb told me Andrew moved to Montreal with his two young boys aged 1 and 3 and they will become fully bilingual at a young age (hats off to him, I have trouble keeping up with my boy who is turning 3 soon and is like the Energizer bunny).
On the strategy in Infrastructure she stated it's a mature portfolio, adding this:
I'll tell you what Andrew said when he joined, which was he really values the platform approach that PSP has developed in infrastructure, because as you know, infrastructure is a very attractive asset class right now in this world of uncertainty and volatility. It's an asset class with stable returns, inflation-linked returns that is very attractive, and so, given how attractive the asset class is, there is more competition, and PSP's approach using platforms like AviAlliance, where we own seven airports and served 95 million passengers last year, allows us to invest in assets and bring not just capital but operating expertise, so that we can not just buy right but also add value through the operating expertise.
No doubt, PSP has one of the best airport platforms among institutional investors, and that has allowed them to offer differentiated capital with deep sector expertise.
Deb confirmed that Andrew Alley will continue with that approach:
Yes, absolutely, I think he saw it as one of the advantages that PSP has in a world where infrastructure is very attractive, and he really is excited about the opportunity to leverage that advantage.
I moved on to Public Equities, which performed very well last fiscal year, and asked her why they increased their allocation to Canadian equities. I also asked her if external absolute return strategies (ie hedge funds) figure prominently in that portfolio.
She responded:
Let me start with the middle of your question, where you have observed that we've increased our allocation to Canadian public equities. That was a result of the expectation that there would be more inflation volatility going forward, and some work that we did on the correlation between Canadian equities and Canadian inflation. As you know, the pension liabilities that we back are Canadian inflation-linked, so seeing that match, we increased our allocation to Canadian equities by 2%.
We also this year launched our Canadian active equities strategy, which has been a really interesting opportunity to continue to leverage our home ice advantage, because we can spend lots of time with the management teams, go there easily, and as we look to leverage our home ice advantage, where appropriate, we can do meetings with on the public market side, and they can either bring or see sometimes identify opportunities for dialogue with, for example, our private credit or infrastructure teams that are also looking to do more investments in Canada.
On whether absolute returns strategies figure into these results, she said this:
Yes. So the global alpha, which is what Justin (Nightingale) runs, has both the Active Equities team and, as well as Alpha Alternatives, and so it's all together in the Global Alpha team that Justin runs.
My only issue with that is the same issue when I covered CAAT Pension Plan results, namely, you don't mix alpha with beta when reporting results, and if you do, your benchmark better reflect that.
Anyway, I shifted focus to strategy, noting she has been there almost four years and asked her where she is taking the organization, what her strategic view is.
She responded:
I think consistent with the discussion we had when I first came in, PSP has a lot of really talented people, and the opportunity was to really focus on our strengths and set a high bar for ourselves in terms of our performance, in terms of our commitment to our mission and our values.
I really feel good, actually, about the progress that we've made towards that, and I know you know our organization well, the focus on our values has really resonated with our people now every year.
When everyone is all together, we run these value sessions where we take a real-life case study of something that happens in our organization, and we work through in small groups how to apply the values to those situations.
I'm really thrilled at how much that exercise has resonated with people, and the feedback that we get around putting our mission first, around collaborating and around accountability.
I noted that there has been some turnover at the organization, like at other Maple 8 funds, but it is a performance-based culture where values are important, as is accountability. I said strategically, this is where you want to focus, you want everybody to be really focused on the mission, to perform, be accountable and deliver results while maintaining the right attitude and culture.
Deb responded:
Absolutely, and I am proud of the number of people in my senior management team that have grown up at PSP, and are really strong contributors who live the values, like Pat Charbonneau, the CIO, and Alexandre Roy, the CRO who have been a PSP, I think, 20 and 19 years, respectively. Sure, there's been some turnover, but we've also developed and promoted some phenomenal people.
Yes, Patrick Charbonneau joined PSP in 2006, the year when I left, and he has done extremely well for himself there, as has Alexandre Roy who joined in 2007.
Lastly, I noted the Canada Growth Fund is doing well and asked her where discussions with the federal government are headed in terms of infrastructure projects in Canada.
Deb responded:
I'll just start with PSP, and then go to the Canada Growth Fund. This year we invested $10 billion in Canada, which takes us to a total of more than $75 billion. So, when you see the annual report, you'll see a number of 20.4% that is of the gross, not the net assets. That's how you get to more than 75 billion. We're very proud of that, and that's been through a combination of direct investments like the 407 as well as the increased allocation to Canadian equities.
And then on the Canada Growth Fund, you're right, we have already committed about $5 billion. The pipeline is very robust, so the ramp has been like this, and so you know that fund will be substantially committed within the next year, which we're very excited about, and we're seeing really interesting opportunities across energy projects like the small modular reactors in Darlington, clean tech, where you know we've backed some some Montreal-based and other funds, and critical minerals, where there's really interesting opportunities that we're seeing that are giving us insight into how geopolitics are playing a role into how governments are creating opportunities for investors that wouldn't otherwise exist,
So to your point about the activity of the federal government in places like Nouveau Monde Graphite, by creating the off-take agreement, they give investors the price and return stability that allows organizations and capital to flow into the development of Canadian assets in markets that have historically been dominated by China.
Lastly, Deb noted there is more transparency in this report and they even said in the press release that they beat their Reference Portfolio 70% of the time since inception (like that data point).
They even started breaking down costs by asset class, other \Maple 8 funds should do the same.
Alright, let me wrap it up there.
Once again, I thank Deb Orida for taking the time to talk to me, enjoyed our conversation.
Overall, I thought the results were decent, if it wasn't for the significant writedowns of opportunistic real estate, the Fund would have performed better on an absolute and relative basis but yes, some areas (like PE and Credit Investments) would still have faced challenges.
Like I said to Deb, after covering most of the large and medium-sized pension funds, I knew what to expect in terms of results and PSP's results were mostly in line with my expectations.
Below, the CNBC Investment Committee debate how to position your portfolio near record highs as stocks look to extend the Monday snapback.
All I know is if momentum and concentration risk continue, it will be impossible for most Maple 8 funds to beat their index in 2026 (OTPP has a big advantage over others because of their investment in SpaceX and Anthropic).
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