• Fast Facts
• Investment Strategy
• Performance
• Investments
• Risk Management
• Public Markets
• Private Equity
• Real Estate
• Infrastructure
• Renewable Resources

PSP Investments’ mandate is defined in Section 4 of the Public Sector Pension Investment Board Act:
To manage and invest amounts¹ that are transferred to it in the best interest of contributors and beneficiaries under the Plans; and to maximize returns without undue risk of loss, having regard to the funding, policies and requirements of the Plans and the ability of those Plans to meet their financial obligations.

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

1. A Policy Portfolio
   
   PSP Investments’ Policy Portfolio defines the asset mix, or how assets will be allocated among various asset classes. It is designed to achieve a return, over the long term, at least equal to what is required to maintain funding requirements and pension benefits in regards to the post-2000 pension obligations at their current levels (the actuarial rate of return). The Policy Portfolio also takes into account the linkage between the assets and the liabilities related to post-2000 pension obligations.
2. Active Management Activities
   Active management activities are designed to generate returns over and above our Policy Portfolio and assist us in achieving the actuarial rate of return, while managing risk.

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

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

• Absolute Return: To achieve a long-term return (net of expenses) at least equal to the actuarial rate of return (i.e. real return of 4.3%, after inflation);
• Relative Performance: To achieve a target return exceeding our Policy Portfolio return.

PSP Investments is in a unique position as one of the few large pension plans in the world that can expect net positive cash flows for at least the next 15 years. This enables us to act on opportunities that may arise and maintain our investments for the long-term, even in difficult market conditions without the burden of liquidity constraints.

• 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.