Capital Markets

Uncovering unique opportunities & making sound investments

Investing in the perfect mix

Capital Markets is comprised of two groups: Public Market Equities and Fixed Income.

 

Public Market Equities are managed by both internal and external managers using a combination of traditional active, absolute return, and passive strategies. The Public Market Equities portfolio has an investment philosophy grounded in a risk-adjusted approach, which allows for the identification of the best opportunities in public equity and absolute return strategies.

 

The diversified Public Market Equities’ team leverages external partners to complement the internal public market value proposition. Our internal equity research platform provides ongoing market insights across the organization and across asset classes.

 

Fixed income is managed internally by an experienced team of investment professionals. This portfolio employs two main strategies: Corporate Credit and Global Sovereign Interest Rates.

Fast facts

  • Over $48B in equity investments

What sets us apart?

  • Diversified portfolio of strategies

  • Capacity to sustain volatility

  • Strong co-investment capabilities

  • Sectoral expertise and deep analytical capabilities

Capital Markets

*Includes Public Market Equities and Fixed Income

 

[In C$ as of March 31, 2020]

$
81.1
B

Net assets under management (AUM)

$(
2.4
)B

Performance income

(
3.0
)%

1-year rate of return

(
4.3
)%

5-year annualized return

Discover how we invest

Equity Asset Allocation

  • 22.8%
    Emerging Markets Equity
  • 21.2%
    EAFE Large Cap Equity
  • 20.7%
    US Large Cap Equity
  • 13.1%
    Canadian Equity
  • 13%
    US Small Cap Equity
  • 9.2%
    Global Equity

Absolute Return Asset Allocation

  • 13.8%
    Opportunistic
  • 13%
    Multi-Strategy, Opportunistic
  • 10.4%
    Multi-Strategy
  • 10.2%
    Emerging Manager Program
  • 9.2%
    Equity Long-Short
  • 8.7%
    Global Macro/CTA
  • 7.2%
    Volatility
  • 6%
    Event-Driven
  • 5.7%
    Distressed Debt
  • 5.4%
    Fixed Income RV
  • 3.2%
    Asia
  • 3.2%
    Commodity
  • 3.8%
    Others

Fixed Income Asset Allocation

  • 50.3
    Canadian Government Bonds
  • 49.7
    World Inflation-Linked Bonds

Capital Markets in action

Forging strategic partnerships

Company: Blueshift

Strategy: Statistical arbitrage

External Investment Manager and Partner

Initial investment date: 2018

 

Our strong network of partners allowed us to spot an emerging hedge fund manager with valuable capabilities. Investing in Blueshift’s winning formula for identifying windows of short-term opportunities in the public equity markets allowed PSP to secure capacity in a highly sought-after hedge fund strategy statistical arbitrage.

Investing in the future

Company: Lyft

Headquarters: United States

Sector: Technology

Inception of trade: 2017

 

We identified a great opportunity to partner with Lyft, a leading ride-sharing company. Our industry specific insights confirmed the attractiveness of both the opportunity and the structure of the transaction. This drove our decision to invest before the company's initial public offfering.

Innovative event-driven strategies

Company: Yahoo

Headquarters: United States

Sector: Technology

Investment in company: 2014

 

We have been active in the Yahoo trade through its lifecycle. From our involvement in Alibaba's IPO four years ago, we implemented a sum-of-the-parts and a capital structure arbitrage, designed a merger and acquisition strategy to profit from Yahoo's sale of core assets to Verizon benefited from the US Tax Reform on a macro front. Our expertise in event-driven situations and our proficiency with multiple financial instruments allowed us to be agile and deploy a range of hedge fund strategies to profit from the unfolding of this situation while managing "directional risk".

Meet our team leader

Anik Lanthier

 

Senior Vice President 

Public Markets and Absolute Return Strategies

 

Contact the team

Want to discover how you can experience the edge? Join our team.