Public Markets

Uncovering unique opportunities & making sound investments

Investing in the perfect mix

Public Markets is composed of public equities, absolute return and fixed income strategies. Investments are managed by both internal and external managers using a combination of traditional active, absolute returns and passive strategies. Public Markets and Absolute Return Strategies (PMARS) invests passively and actively across traditional long-only and absolute return strategies. Our investment philosophy is grounded in a risk-adjusted approach. We identify the best opportunities in public equity and fixed income markets and across absolute return strategies. Our diversified team leverages external partners to complement our internal public market value proposition. Our internal research platform provides ongoing market insights across the organization and across asset classes.

 

A video about PSP Investments’ investment in Lyft.

Fast facts

  • Over $50B in equity investments

  • Over $12B in a portable alpha portfolio

  • $1.8B of value added in the last 5 years

What sets us apart?

  • Diversified portfolio of strategies

  • Capacity to sustain volatility

  • Strong co-investment capabilities

  • Sectoral expertise and deep analytical capabilities

Public Markets at a glance*

*Includes public market equities and government fixed income

 

[In C$ as of March 31, 2018]

$
76.7
B
Net assets under management (AUM)
$
6.3
B
Investment income
8.3
%
1-year rate of return
10.6
%
5-year annualized return

Discover how we invest

Equity Asset Allocation

  • 22.0% Emerging Markets Equity
  • 22.0% EAFE Large Cap Equity
  • 19.0% US Large Cap Equity
  • 16.0% Canadian Equity
  • 14.0% US Small Cap Equity
  • 7.0% Global Equity

Absolute Return Asset Allocation

  • 44.0% Multi-Strategy
  • 15.0% Emerging Manager Platform
  • 10.0% Equity Long-Short
  • 9.0% Global Macro/ CTA
  • 7.0% Volatility
  • 4.0% Distressed Debt
  • 3.0% Event-Driven
  • 3.0% Asia
  • 2.0% Statistical Arbitrage
  • 2.0% Commodity
  • 1.0% Hedge Fund Secondaries

PMARS 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".

Yahoo logo

Meet our team leader

Anik Lanthier

 

Senior Vice President 

Public Markets and Absolute Return Strategies

 

Contact the team

For any information pertaining to Fixed Income, please contact David J. Scudellari, Senior Vice President and Head of Principal Debt and Credit Investments who is responsible for both Private Debt and Fixed Income asset classes.

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