Investment Strategy
Our Investment Approach

Based on PSP Investments’ mandate and risk appetite, the Board of Directors has implemented an investment approach founded on two key pillars:

  1. Policy Portfolio
    PSP Investments’ Policy Portfolio defines the asset mix, or how assets will be allocated among various asset classes. PSP Investments recognizes that the Policy Portfolio is the predominant factor in determining performance and risk over time. As such, it is reviewed annually or more frequently, if required. Each review includes an asset-liability study to ensure the Policy Portfolio accounts for the specific characteristics of the Plan's Post-2000 Liabilities.1
  2. Active Management
    Active management activities are designed to generate returns over our Policy Portfolio. We believe that selected active management activities can accomplish this without materially impacting risk.

Our investment approach, including our Policy Portfolio, is outlined in our Statement of Investment Policies, Standards and Procedures.

Our Performance Objectives

The success of our investment approach is measured by the following objectives:

  • Investment approach: achieve an absolute return, net of expenses, at least equal to the actuarial rate of return over 10-year periods;
  • Active management: achieve a return exceeding the Policy Portfolio benchmark over four-year periods.
Our Competitive Advantage

As one of the only large pension plans in the world which can expect net positive inflows until at least 2030, PSP Investments is in a unique position. This situation enables us to act on opportunities and maintain our investments for the long term, even in difficult market conditions and without the burden of liquidity constraints.

  1. These amounts are liable for pension obligations for service on or after April 1, 2000 except, in the case of the Reserve Force Plan, where they are liable for service on or after March 1, 2007.