The Public Sector Pension Investment Board (PSP Investments) generated a net portfolio return of 4.4 per cent for the fiscal year that ended March 31 despite “challenging” markets, with officials crediting a combination of private market investments, international expansion and currency exposure.
Investment
PSP Investments posts 4.4% return despite ‘challenging’ markets
It was a “challenging year for both equities and fixed income” investments, said Deborah Orida, who took over as chief executive of PSP Investments on Sept. 1, 2022 after 13 years at the Canada Pension Plan Investment Board, where her roles included running CPPIB’s real assets department, encompassing infrastructure and real estate, and a six-year stint in Hong Kong.
Orida credited “forward thinking and smart execution” for the pension’s performance and said these attributes “will become even more important in the coming years.”
Eduard van Gelderen, PSP’s chief investment officer, said the decision to diversify into private markets and expand internationally provided stability amid the “exceptionally volatile financial markets” in 2023.
Foreign currency exposure, meanwhile, boosted returns as the euro and British pound rebounded, while open U.S. dollar exposure “played its expected role in mitigating the total fund’s downside risk.”
Fixed-income assets ended the year in positive territory, which PSP attributed mainly to “defensive positioning with a significant short duration bias amid the general bond market downturn caused by a global increase in interest rates.”
Credit investment performance, meanwhile, was boosted by higher interest spreads and upfront fee income growth in both credit investment and private equity portfolios.
Economy
S&P/TSX composite down more than 200 points, U.S. stock markets also fall
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
Economy
S&P/TSX composite up more than 150 points, U.S. stock markets also higher
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
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