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PSP Investments Rebalances Portfolio Toward Canada and Global Assets

Volatility from U.S. tariffs followed by looming pension tax threats has spurred the fund’s shift into Canadian and overseas investments.

More than 40 per cent of the fund's assets are invested in the U.S.
The Canada flag flies atop the Peace Tower on Parliament Hill in Ottawa on Friday, May 5, 2023. THE CANADIAN PRESS/Sean Kilpatrick

Overview

  • The fund posted a 12.6% return in the fiscal year ending March 31, trailing its internal benchmark by 4.8 percentage points.
  • More than 40% of its $299.7 billion portfolio remains in U.S. assets, double the 20% allocation to Canada.
  • A dedicated working group has tracked daily liquidity metrics since early April’s tariff-driven market swings.
  • Management has modeled potential impacts of proposed U.S. tax measures that could remove pension fund exemptions before underwriting new U.S. investments.
  • PSP made its largest home-market deal by acquiring a multibillion-dollar stake in Ontario’s 407 Express Toll Route.