PSP Investments

KYCO: Know Your Company

Reveal Profile

4 November 2025

1) Overview of the Company

The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investors with $299.7 billion of net assets under management as of March 31, 2025. Established in 1999 as a Canadian Crown corporation, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. The organization manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments across more than 100 sectors and industries.

PSP Investments is headquartered in Ottawa with its principal business office in Montréal and maintains international offices in New York, London, and Hong Kong. The organization employs over 1,000 professionals globally who collaborate across asset classes to realize complex international investment opportunities. As of March 31, 2025, the firm achieved a 12.6% total fund one-year net portfolio return and 10.6% five-year net annualized return.

The organization operates under a strategic mandate to maximize returns without undue risk of loss, having regard to the funding policies and requirements of the pension plans and their ability to meet financial obligations. PSP Investments has demonstrated strong performance with its 10-year net annualized return of 8.2% and $31.5 billion in excess net investment gains over 10 years compared to its Total Fund Benchmark.

In April 2023, PSP Investments was appointed by the Government of Canada as the investment manager for the $15 billion Canada Growth Fund, operating through its wholly-owned subsidiary Canada Growth Fund Investment Management Inc. Recent leadership changes include the appointment of Patrick Charbonneau as Chief Investment Officer and Caroline Vermette as Chief Financial Officer, both effective in early 2025.

2) History

PSP Investments was established in 1999 as a Canadian Crown corporation under the Public Sector Pension Investment Board Act, created by the Parliament of Canada to manage and invest amounts transferred by the Government of Canada for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. The organization was founded to fund retirement benefits under the Plans for service after April 1, 2000, with the Reserve Force added to the mandate effective March 1, 2007.

The organization began as a small entity investing primarily in public markets and fixed income but evolved into a large global institutional investor overseeing a diverse portfolio across multiple asset classes. PSP Investments experienced significant growth milestones throughout its history, with net assets under management growing from its initial establishment to $204.5 billion by March 31, 2021, marking its strongest absolute return in over 10 years with an 18.4% one-year net portfolio return. The organization surpassed $200 billion in assets under management during fiscal year 2021, representing a 20.4% increase from the previous year.

Major organizational developments included the launch of PSP Investments’ inaugural Climate Strategy in April 2022, which set enhanced ambitions to guide emissions reduction across its investment portfolio and support the global transition to net-zero emissions by 2050. In February 2022, the organization issued its first Green Bond of $1.0 billion, furthering its commitment to sustainable finance.

A significant leadership transition occurred in September 2022 when Deborah K. Orida was appointed President and Chief Executive Officer, succeeding Neil Cunningham who served as Vice Chair and Special Advisor until his retirement in March 2023. Ms. Orida brought 25 years of investment and finance industry experience, having previously served as Senior Managing Director, Global Head of Real Assets & Chief Sustainability Officer at CPP Investments.

In April 2023, PSP Investments was appointed by the Government of Canada as the investment manager for the $15 billion Canada Growth Fund, operating through its wholly-owned subsidiary Canada Growth Fund Investment Management Inc. This appointment recognized PSP Investments’ investment expertise, operational ecosystem, and governance framework that operates independently and at arm’s length from government.

The organization continued expanding its global presence with offices established in Ottawa (headquarters), Montréal (principal business office), New York, London, and Hong Kong. By March 31, 2025, PSP Investments had grown to $299.7 billion in net assets under management, demonstrating consistent long-term performance with a 10-year net annualized return of 8.2% and $31.5 billion in excess net investment gains over 10 years compared to its Total Fund Benchmark.

3) Key Executives

Deborah K. Orida serves as President and Chief Executive Officer, having joined PSP Investments in September 2022. She brings 25 years of experience in the investment and finance industry, having previously served as Senior Managing Director, Global Head of Real Assets & Chief Sustainability Officer at CPP Investments. Ms. Orida holds an MBA in Finance from The Wharton School and a BA, LLB in Economics, English, and Law from Queen’s University.

Patrick Charbonneau was appointed Senior Vice President and Chief Investment Officer effective February 3, 2025. With 18 years at PSP Investments, including six years as a founding senior member of the London office, he brings deep expertise in private markets and a global perspective to his role. He has over 20 years of experience in the infrastructure sector and was instrumental in building the organization’s infrastructure portfolio and team since inception of the infrastructure asset class in 2006. Mr. Charbonneau holds a Chartered Professional Accountant (CPA) designation.

Caroline Vermette joined PSP Investments as Senior Vice President and Chief Financial Officer in April 2025. She brings over 20 years of experience in financial leadership roles, having most recently served as Senior Vice President, Internal Audit at National Bank of Canada. Her extensive background includes leadership roles such as Vice President, IT Delivery, Corporate Sectors and Vice President, Financial Performance Management, Financial Markets at National Bank of Canada, and Executive Director, Accounting Policy at Goldman Sachs. Ms. Vermette holds a CPA designation.

Alexandre Roy was appointed Senior Vice President and Chief Risk Officer, having joined PSP Investments in August 2007. Through progressively senior roles, culminating in his position as Senior Managing Director, Total Fund Management, he developed and implemented the Total Fund approach that treats all asset classes and investment activities as a cohesive unit. This approach has optimized the investment process, enhanced portfolio performance, and improved risk management across the organization.

Mélanie Bernier serves as Senior Vice President and Chief Legal Officer, having joined the organization in 2008. She previously held roles as Vice President and Divisional General Counsel at PSP Investments and Senior Legal Counsel at National Bank of Canada. Ms. Bernier is a member of the Québec Bar and serves on the Blue Metropolis Foundation Board of Directors.

Oliver Duff holds the position of Senior Vice President and Global Head of Credit Investments, having joined PSP Investments in September 2016. He has more than 25 years of experience in leverage finance and previously served as Global Head of Leveraged Finance and European Head of Capital Financing at HSBC Bank PLC. Mr. Duff is a graduate of Exeter University and is a qualified Chartered Accountant.

Simon Marc serves as Senior Vice President and Global Head of Private Equity and Real Estate Investments, having joined PSP Investments in August 2015. He has over 25 years of investment experience in private equity and was instrumental in developing the organization’s private equity presence in Europe and globally, opening PSP Investments’ London office in 2017 and supporting the opening of the Hong Kong office in 2019. He is a graduate of the HEC School of Management, Paris.

David Ouellet holds the role of Senior Vice President and Chief Technology, Data and Operations Officer, having joined PSP Investments in 2012. He has progressively advanced through senior roles including Vice President and Head of Technology and Digital Strategy, and Vice President and Head of Strategy and Business Planning. His background includes senior management experience at KPMG across Canada and China.

Arun Bajaj was appointed Senior Vice President, Chief People and Corporate Development Officer in February 2025. He brings extensive experience from his role as Executive Vice President, Chief Human Resources Officer and Legal Affairs at Gildan Activewear Inc., and previously served in senior human resources roles at Renault-Nissan-Mitsubishi Alliance and Nissan Motor Corporation. He serves as Independent Director and Chair of Compensation and Human Resources Committee at Cogeco Communications Inc. and is a member of the Law Society of Ontario.

4) Ownership

The Public Sector Pension Investment Board operates as a Canadian Crown corporation with a unique ownership structure that distinguishes it from private investment managers. The capital of PSP Investments consists of ten shares with a par value of $10 each, which are issued to and held by the President of the Treasury Board on behalf of Her Majesty in right of Canada. These shares are non-transferable, carry no voting rights, and provide no dividend entitlements, establishing PSP Investments as wholly owned by the Canadian federal government.

PSP Investments was established under the Public Sector Pension Investment Board Act in 1999 as a Crown corporation, operating at arm’s length from the Government of Canada despite government ownership. The organization is specifically structured to avoid undue government influence over investment decisions, with its investments and financing conducted independently from the Government of Canada. The enabling legislation ensures that PSP Investments operates as a separate legal entity with the capacity and rights of a natural person, while maintaining its Crown corporation status.

The governance structure reflects this arm’s length relationship through an independent Board of Directors appointed by the Governor in Council on recommendation of the President of the Treasury Board. Board members are selected from a list of qualified candidates proposed by an external nominating committee established by the President of Treasury Board, which operates independently from both the Board of Directors and Treasury Board. This appointment process ensures professional independence while maintaining accountability to the federal government as the ultimate owner.

The ownership structure has remained fundamentally unchanged since PSP Investments’ establishment, with no transformational ownership changes or private equity involvement. The organization operates with a mandate established by Parliament to manage amounts transferred by the Government of Canada for specific federal pension plans, with the Crown maintaining the authority to call upon net assets for pension benefit payments as required under the Superannuation Acts.

PSP Investments conducts its investment activities through a network of wholly-owned subsidiaries organized primarily under Canadian law, including PSP Capital Inc., which serves as the organization’s financing subsidiary for debt issuance programs. The subsidiary structure enables PSP Investments to hold investments across multiple asset classes and jurisdictions while maintaining centralized ownership and control under the Crown corporation framework.

5) Financial Position

PSP Investments delivered exceptional financial performance in fiscal 2025, achieving a 12.6% one-year net portfolio return and reaching $299.7 billion in net assets under management as of March 31, 2025. This performance significantly outpaced the organization’s Total Fund Benchmark of 10.5%, generating $5.6 billion in excess net investment gains for the year. The strong results were driven by outstanding performance across multiple asset classes, with infrastructure delivering 17.8% returns, private equity generating 16.6%, and public equities achieving 15.1% net returns. Even traditionally underperforming asset classes showed improvement, with real estate achieving flat performance at 0.0% compared to the previous year’s negative 15.9% return.

The organization’s long-term performance record demonstrates consistent value creation for pension plan beneficiaries. Over the five-year period ending March 31, 2025, PSP achieved a 10.6% net annualized return compared to the Total Fund Benchmark of 9.1%, resulting in $13.8 billion in cumulative excess net investment gains. The 10-year track record is even more impressive, with an 8.2% net annualized return generating $31.5 billion in excess gains compared to the benchmark. This represents 1.3% annual outperformance over 10 years, demonstrating the organization’s ability to add significant value through active management strategies.

PSP Investments maintains a well-diversified portfolio across asset classes, with public equities representing 33% of the total portfolio, followed by private equity at 14%, infrastructure at 11%, credit investments at 11%, real estate at 9%, capital markets at 15%, and natural resources at 6%. This diversification strategy has provided resilience during market volatility while enabling the organization to capitalize on opportunities across different market cycles and geographic regions.

The organization maintains strong financial discipline with an operating cost ratio of 29.5 basis points as of fiscal 2024, reflecting efficient operations despite managing increasing assets under management. Total costs for fiscal 2025 included $790 million in operating costs, $1.609 billion in investment costs, and $1.465 billion in financing costs, all of which are more than offset by the organization’s strong investment performance and value creation capabilities.

PSP Investments benefits from excellent credit quality, maintaining AAA credit ratings from both Morningstar DBRS and Fitch Ratings with stable outlooks. These ratings reflect the organization’s strong long-term operating performance, low leverage profile, robust enterprise risk management framework, and backing by the Government of Canada as a Crown corporation. The high credit ratings enable PSP to access debt markets at favorable rates for investment financing and working capital requirements.

The organization’s balance sheet strength is further enhanced by diversified funding sources and prudent risk management practices. PSP maintains comprehensive enterprise risk management processes that integrate investment risks, liquidity management, and operational risks across all asset classes and business functions. The organization’s leverage is carefully managed through its Risk Appetite Statement and monitored by independent risk management teams that provide total fund perspective on portfolio risks.

6) Market Position

PSP Investments occupies a leading position among global institutional investors, ranking as one of Canada’s largest pension investors and among the world’s most significant sovereign wealth funds and public pension funds by assets under management. With $299.7 billion in net assets under management as of March 31, 2025, PSP ranks among the top 10 largest pension funds globally and has established itself as a major player in international investment markets across multiple asset classes.

The organization has demonstrated exceptional competitive performance relative to peer institutions. According to Global SWF research, PSP ranked among the world’s top 10 public pension funds and sovereign wealth funds that generated the largest compound annualized returns between 2013 and 2022. This positioning reflects PSP’s sophisticated investment capabilities and successful execution of its diversified global investment strategy across public and private markets.

PSP’s market leadership is particularly evident in alternative investments, where the organization has built world-class capabilities in infrastructure, private equity, real estate, and credit investments. The infrastructure portfolio has been a standout performer, generating a 17.8% one-year return and 13.8% five-year annualized return as of March 31, 2025. The organization’s infrastructure investments benefit from high inflation linkage and downside protection, with particular strength in data centers and transportation subsectors that have significantly outperformed benchmarks.

The organization’s global reach and strategic partnerships enhance its competitive position in accessing high-quality investment opportunities. PSP maintains offices in Ottawa, Montréal, New York, London, and Hong Kong, enabling direct access to major investment markets and deal flow. The organization has established strategic partnerships with leading global investment managers and operators, including its recent $2.82 billion investment with KKR in American Electric Power’s transmission companies and its Network FiberCo partnership with BCE involving over US$1.5 billion for U.S. fiber infrastructure development.

PSP’s appointment as investment manager for the $15 billion Canada Growth Fund in April 2023 further strengthens its market position and demonstrates recognition of its investment expertise by the Government of Canada. This mandate provides additional scale and investment opportunities while leveraging PSP’s established operational infrastructure and governance framework.

The organization’s commitment to sustainable investing and climate strategy implementation positions it well for evolving market trends and regulatory requirements. PSP has developed sophisticated sustainability infrastructure including a proprietary Green Asset Taxonomy and comprehensive climate analysis capabilities. The organization increased its green assets to $64.9 billion in fiscal 2024 and has integrated material sustainability factors into investment processes across all asset classes.

PSP’s market position benefits from its unique status as a Canadian Crown corporation, which provides stability and government backing while maintaining investment decision independence. This structure enables access to certain investment opportunities while maintaining professional independence through comprehensive governance frameworks designed to prevent conflicts of interest.

7) Legal Claims and Actions

PSP Investments has faced notable litigation challenging investment valuation practices and asset management decisions over the past decade. The most significant legal dispute occurred in 2015 when PSP Investments filed a lawsuit against Saba Capital Management, L.P. in New York State Supreme Court, alleging manipulation of asset valuations during a $500 million redemption from the Saba Capital Offshore Fund. PSP alleged that Saba Capital artificially marked down the value of fixed income securities issued by The McClatchy Company when PSP requested a full redemption of its Class A shares in March 2015, then marked the bonds back up just one month later.

According to the complaint, PSP claimed Saba Capital changed its valuation methodology specifically for the redemption, using a bids-wanted-in-competition process that resulted in significantly depressed valuations compared to the external pricing sources previously used. The MNI Bonds were valued at 31 cents on the dollar as of March 31, 2015, compared to 60 cents on the dollar at the end of the first quarter of 2015. PSP alleged this was done in bad faith to artificially depress the redemption amount while benefiting remaining fund investors.

The litigation was ultimately resolved through settlement in March 2017, with PSP walking back its initial claims and characterizing the matter as “a commercial dispute involving a good faith disagreement over the valuation of two highly illiquid corporate bonds.” The settlement reflected a pattern of outside organizations working with individual plan participants to pursue litigation that could restrict how pension funds invest, demonstrating the complex legal challenges facing large institutional investors when dealing with illiquid securities valuation.

PSP Investments has also faced regulatory scrutiny regarding its compliance with securities regulations. The organization filed applications with the U.S. Securities and Exchange Commission in 2020 and 2021 seeking exemptions from various provisions of the Investment Company Act of 1940, including early warning requirements, moratorium provisions, and insider reporting requirements. These applications were necessary because PSP and its subsidiaries do not technically satisfy the definition of an “investment manager” under securities regulations, despite performing similar functional roles to registered investment managers.

Under Canadian law, PSP Investments is subject to specific statutory penalties for false statements. The Public Sector Pension Investment Board Act establishes that any director, officer, employee, agent, or auditor who prepares, signs, approves or concurs in any statement, report or other document containing false or deceptive information is guilty of an offence punishable by fines up to $100,000 for individuals or $500,000 for corporations, and potential imprisonment up to 12 months for individuals.

The organization has also been subject to advocacy pressure regarding its investment holdings. In 2024, Just Peace Advocates raised concerns about PSP’s investments in companies listed in the United Nations Database of businesses operating in Israeli-occupied territories, totaling approximately $10.32 million across five companies including Airbnb, Booking.com, Expedia Group, Motorola Solutions, and TripAdvisor. Additionally, advocacy groups identified PSP investments totaling over $635 million in companies deemed complicit in activities related to occupied Palestine and Syrian Golan Heights through various verified sources.

PSP Investments has faced internal stakeholder criticism regarding specific portfolio holdings. The Public Service Alliance of Canada, representing over 200,000 public sector employees, called for PSP to divest from Revera Inc., a wholly-owned subsidiary operating long-term care facilities. This call came amid a $50 million class action lawsuit against Revera by families of coronavirus victims in Ontario facilities, alleging inadequate sanitation and testing protocols. The union argued that PSP’s continued investment in Revera posed undue risk and was contrary to its fiduciary obligations to plan members.

The organization operates under comprehensive governance frameworks designed to prevent conflicts of interest and ensure compliance with applicable laws. PSP Investments has established procedures for identifying real or potential conflicts of interest, implemented a code of conduct for officers and employees, and designated a committee to monitor application of conflict of interest procedures. These governance measures reflect the organization’s recognition of the legal and reputational risks inherent in managing such a large and diverse investment portfolio on behalf of federal government pension plan beneficiaries.

8) Recent Media

Public Sector Pension Investment Board (PSP Investments) reported strong financial performance for its fiscal years ending March 31, 2024, and March 31, 2025. For fiscal 2024, the fund posted a net return of 7.2%, with net assets under management (AUM) growing 8.7% to $264.9 billion. The 2024 performance was driven by public equities (17.5%), infrastructure (14.3%), and credit investments (14.2%), which offset a significant loss in the real estate portfolio of negative 15.9%. For fiscal 2025, PSP Investments reported a 12.6% one-year net portfolio return, with AUM reaching $299.7 billion. Key contributors to the 2025 result included infrastructure (17.8%), private equity (16.6%), and public equities (15.1%), while real estate performance was flat at 0.0%. In June 2025, CEO Deborah Orida stated that the fund was looking to increase its domestic investments in Canada, assessing how to leverage its global capabilities in sectors like airports and data centers at home amid growing geopolitical risks in markets such as the U.S. As of June 2025, PSP had approximately $70 billion, or 20% of its portfolio, invested in Canada.

The fund has engaged in several major transactions and portfolio adjustments during 2024 and 2025. In November 2024, PSP Investments reportedly began the process of selling a portfolio of private equity fund stakes valued at over $1 billion for portfolio management purposes. In January 2025, PSP partnered with KKR to acquire a 19.9% minority interest in two of American Electric Power’s transmission companies in Ohio, Indiana, and Michigan for $2.82 billion. In March 2025, the fund announced an agreement to acquire a 7.51% stake in the 407 Express Toll Route in the Greater Toronto Area from Canada Pension Plan Investment Board (CPP Investments) for approximately $2.39 billion; the deal was completed in June 2025. In May 2025, PSP and BCE Inc. formed a partnership called Network FiberCo, with PSP committing over US$1.5 billion to accelerate fiber infrastructure development in the United States. In July 2025, the fund committed up to A$800 million to the Aliro Group Industrial Vehicle for acquiring Australian industrial and logistics assets.

PSP Investments experienced significant turnover in its executive leadership in 2024 and 2025, which was framed as part of an evolution under a new three-year strategic plan led by CEO Deborah Orida. In August 2024, the fund announced the departure of Chief Investment Officer Eduard van Gelderen, effective October 1, 2024, and the planned retirement of Chief Financial and Risk Officer Jean-François Bureau, effective December 31, 2024. In January 2025, PSP announced the appointment of Patrick Charbonneau, formerly the head of Canada Growth Fund Investment Management, as its new CIO, effective February 3, 2025. In March 2025, the fund named Caroline Vermette as Senior Vice President and Chief Financial Officer and appointed Alexandre Roy, who had been serving as interim CIO, as its permanent Senior Vice President and Chief Risk Officer.

The fund’s climate strategy has faced external scrutiny. In September 2023, concerns were raised about PSP’s management of the $15 billion Canada Growth Fund, with one advocacy group suggesting PSP’s “mediocre” climate record and lack of a net-zero commitment could risk the fund becoming a “slush fund for the oil and gas industry.” A 2024 report card from the organization Shift Action for Pension Wealth & Planet Health gave PSP an overall “C” grade on its climate plan, assigning it an “F” for its lack of a Paris-aligned portfolio target and its Fossil Fuel Exclusion policy. The report noted that loopholes in PSP’s Green Asset Taxonomy could permit greenwashing, though it also acknowledged the fund’s progress on interim targets and internal measurement tools. PSP updated its Green Bond Framework in August 2023 and again in October 2025, with S&P Global Ratings affirming its “Medium green” assessment.

Activist and advocacy groups have pressured PSP over certain investments. In April 2024, the group Just Peace Advocates highlighted over $635 million in PSP investments in companies allegedly complicit in activities related to Israeli-occupied territories, including five companies on a United Nations database. In April 2025, the Canadian Association of Professional Employees (CAPE), a federal public sector union, called on PSP and other Canadian pension funds to divest from Tesla Inc., citing its CEO’s alignment with the U.S. presidential administration. In response to the call for divestment, a PSP spokesperson stated that the fund continually monitors global trade conditions and market developments.

PSP has also faced governance and investment-related controversies. In August 2023, a group of public service pension plan members sent a letter to the Canadian federal government asking for the removal of Miranda Hubbs from PSP’s Board of Directors. The request cited conflicts of interest arising from her concurrent role on the board of Imperial Oil, which was under investigation by Environment and Climate Change Canada for a major oil sands tailings leak. In July 2025, it was reported that PSP’s agricultural subsidiary in Hawaii, Mahi Pono, became the sole owner of the East Maui Irrigation system for US$55 million after its partner, Alexander & Baldwin, exited. The deal occurred amid a long-standing controversy and an impending standoff with a new public water authority seeking to take control of the irrigation network.

In late 2024 and early 2025, PSP made two significant divestitures of its holdings in D-Wave Quantum Inc. Between December 10 and December 12, 2024, PSP sold 18.4 million shares for $78.8 million. This was followed by the sale of 19.67 million shares between January 10 and January 14, 2025, for a total of approximately $90.1 million. PSP characterized the sales as part of its ongoing portfolio management activities.

9) Strengths

Exceptional Scale and Investment Performance Track Record

PSP Investments operates as one of Canada’s largest pension investors with $299.7 billion in net assets under management as of March 31, 2025, demonstrating substantial growth from its 1999 establishment. The organization has delivered consistent long-term performance with a 10-year net annualized return of 8.2% and $31.9 billion in cumulative net investment gains above the Reference Portfolio over 10 years, representing 1.3% annual outperformance. PSP’s five-year net annualized return of 10.6% significantly outperformed the Total Fund Benchmark return of 9.1%, generating $13.8 billion in excess net investment gains over five years. According to a Global SWF report, PSP ranked among the world’s top 10 public pension funds and sovereign wealth funds that generated the largest compound annualized returns between 2013 and 2022.

Global Infrastructure and Alternative Investment Expertise

The organization has developed sophisticated capabilities across multiple alternative asset classes, with Infrastructure generating a 17.8% one-year return and 13.8% five-year annualized return as of March 31, 2025. PSP’s infrastructure portfolio benefits from high inflation linkage and downside protection, with investments in data centers and transportation subsectors significantly outperforming benchmarks. The organization’s Private Equity portfolio achieved a 16.6% one-year return and 17.2% five-year annualized return, showcasing well-established partnerships with leading fund managers and quality co-investment capabilities. PSP demonstrates global reach through strategic partnerships, including its $2.82 billion investment with KKR in American Electric Power’s transmission companies and its €300 million European hospitality joint venture with Eurazeo.

Comprehensive Risk Management Framework and Governance

PSP has established a sophisticated enterprise risk management process that takes an integrated approach to managing investment risks, liquidity, leverage, and non-investment risks across all asset classes. The Risk Management Group is subdivided into specialized teams including Enterprise Risk and Crisis Management, Capital Market Risk, Credit and Private Investment Risk, and Transversal Risk teams that provide total fund perspective. The organization operates under Board-approved Risk Appetite Statement guidelines and maintains independent oversight through its Board of Directors, which includes 11 experienced professionals with diverse expertise spanning investment management, corporate governance, and risk oversight. Morningstar DBRS confirmed PSP’s AAA credit rating with stable trends in October 2025, recognizing its strong long-term operating performance, low leverage, and robust enterprise risk management.

Diversified Global Investment Platform

PSP maintains a globally diversified portfolio across more than 100 sectors and industries, with international offices in New York, London, and Hong Kong complementing its Ottawa headquarters and Montreal principal business office. The organization employs over 1,000 professionals globally who collaborate across asset classes to realize complex international investment opportunities. PSP’s diversified approach includes strategic partnerships with best-in-class operators, such as its Network FiberCo partnership with BCE involving over US$1.5 billion for U.S. fiber infrastructure development and its A$800 million commitment to the Aliro Group Industrial Vehicle for Australian industrial assets.

Strong Leadership Team with Deep Industry Experience

The senior management team brings extensive experience from top-tier financial institutions and demonstrates proven leadership in pension fund management. Chief Executive Officer Deborah K. Orida brings 25 years of investment industry experience, including senior roles at CPP Investments as Global Head of Real Assets and Chief Sustainability Officer. Chief Investment Officer Patrick Charbonneau has 18 years at PSP Investments, including six years as a founding senior member of the London office, with over 20 years of infrastructure sector experience. The executive team includes professionals with backgrounds at leading institutions including Goldman Sachs, National Bank of Canada, HSBC Bank PLC, and CPP Investments, providing deep expertise across all major asset classes and risk management disciplines.

Advanced Sustainability and Climate Capabilities

PSP has developed sophisticated sustainability infrastructure including a proprietary Green Asset Taxonomy and comprehensive climate strategy implementation. The organization increased its green assets to $64.9 billion in fiscal 2024 compared to $48.9 billion in fiscal 2023, while expanding scope 1 and scope 2 GHG emissions data coverage to 62% of in-scope assets. PSP launched a sustainability research platform that equips the organization with knowledge to navigate long-term sustainability-related opportunities and has integrated material sustainability factors into investment processes through a hub-and-spoke model. The organization issued its first Green Bond of $1.0 billion in February 2022 and updated its Green Bond Framework in 2023, receiving “Medium green” assessment from S&P Global Ratings.

Canadian Crown Corporation Structure with Independent Operations

PSP operates as a Canadian Crown corporation established under the Public Sector Pension Investment Board Act, providing stability and government backing while maintaining investment decision independence. The organization operates at arm’s length from the Government of Canada despite government ownership, with investments and financing conducted independently through comprehensive governance frameworks designed to prevent conflicts of interest. This structure provides unique advantages including access to government-sponsored investment opportunities like the $15 billion Canada Growth Fund mandate, while maintaining professional independence through an external nominating committee process for Board appointments.

Demonstrated Operational Excellence and Cost Management

PSP maintains disciplined cost management with an operating cost ratio of 29.5 basis points as of fiscal 2024, reflecting continued commitment to efficient operations despite higher assets under management. The organization generated cumulative net investment gains of $31.9 billion in excess of the Reference Portfolio over 10 years, net of all costs, demonstrating value creation after accounting for operational costs of $790 million, investment costs of $1.609 billion, and financing costs of $1.465 billion in fiscal 2025. PSP’s total fund approach treats all asset classes and investment activities as a cohesive unit, optimizing the investment process and enhancing portfolio performance through coordinated excellence across global offices and asset classes.

10) Potential Risk Areas for Further Diligence

Technology and Cybersecurity Risks

PSP Investments faces significant cybersecurity vulnerabilities as a major institutional investor managing $299.7 billion in assets and maintaining extensive personally identifiable information for over 900,000 plan members. The organization operates across multiple global offices in Ottawa, Montréal, New York, London, and Hong Kong, creating complex IT infrastructure requirements that increase attack surfaces. Like other large pension funds, PSP is considered a prime target for cyberattacks due to its combination of substantial financial assets, extensive personal data holdings, and relatively smaller IT security staff compared to financial institutions of similar asset size. The 2023 MOVEit cyberattack that affected CalPERS and CalSTRS, exposing data for 1.2 million retirement plan participants, demonstrates the sector-wide vulnerability to third-party vendor breaches that could impact PSP’s operations and member data security.

Third-Party Risk Management and Vendor Dependencies

PSP Investments operates with significant reliance on external service providers across its global investment operations, creating potential operational and reputational risks from vendor failures or security breaches. The organization’s complex subsidiary structure and international presence require coordination with numerous third-party providers for investment management, data processing, and operational support services. Given the pension fund industry’s experience with vendor-related data breaches, including the MOVEit incidents that affected multiple major retirement systems, PSP’s vendor risk management framework requires careful evaluation to ensure adequate due diligence, monitoring, and incident response capabilities are in place. The organization’s expansion into alternative investments and private markets increases dependency on specialized external managers and service providers, amplifying third-party risk exposure.

Regulatory Compliance Coordination Across Multiple Jurisdictions

Operating globally across Canada, the United States, United Kingdom, and Hong Kong exposes PSP Investments to complex regulatory requirements and potential compliance coordination challenges. The organization must navigate differing securities regulations, tax requirements, and reporting obligations across jurisdictions while maintaining compliance with Canadian Crown corporation governance standards. PSP filed applications with the U.S. Securities and Exchange Commission seeking exemptions from Investment Company Act provisions, indicating ongoing regulatory complexity in managing cross-border operations. The organization’s role as investment manager for the $15 billion Canada Growth Fund adds additional regulatory oversight requirements and potential conflicts of interest that require careful management.

Alternative Investment Concentration and Liquidity Risks

PSP Investments maintains significant allocations to alternative investments including private equity (14% of portfolio), real estate (9%), infrastructure (11%), and natural resources (6%), creating concentration risks in less liquid asset classes. The organization’s real estate portfolio experienced a negative 15.9% return in fiscal 2024, representing its worst performance in this asset class since the 2008 financial crisis, highlighting volatility risks in alternative investments. The illiquid nature of these investments could create challenges during market stress periods or if the organization needs to meet unexpected cash requirements for pension benefit payments or other obligations. PSP’s use of leverage and complex investment structures across alternative asset classes requires sophisticated risk management and could amplify losses during adverse market conditions.

Governance and Conflicts of Interest in Crown Corporation Structure

As a Canadian Crown corporation with shares held by the President of the Treasury Board, PSP Investments faces unique governance challenges related to its government ownership structure while maintaining investment independence. The organization’s appointment as investment manager for the Canada Growth Fund creates potential conflicts of interest between its pension fund mandate and government policy objectives that require careful management through established conflict procedures. Board appointment processes through government nomination committees, while designed to maintain independence, could create perceived or actual conflicts of interest that warrant ongoing monitoring. The organization’s requirement to operate “at arm’s length” from government while remaining wholly government-owned creates inherent tension that requires robust governance frameworks to manage effectively.

Executive Leadership Transition and Key Person Dependencies

PSP Investments experienced significant senior executive turnover in 2024-2025, including the departures of Chief Investment Officer Eduard van Gelderen and Chief Financial Officer Jean-François Bureau, followed by appointments of new leadership across multiple C-suite positions. The organization’s transition to new leadership under CEO Deborah Orida’s three-year strategic plan creates execution risks during a period of significant organizational change. Key person dependencies in specialized investment areas, particularly given PSP’s focus on direct investments and co-investments requiring deep expertise, could create operational risks if additional senior personnel depart. The organization’s global expansion and complex investment mandate require experienced leadership with specific skills that may be difficult to replace quickly in competitive talent markets.

Climate Strategy Implementation and Transition Risks

Despite PSP’s sophisticated climate analysis capabilities, the organization has not committed to a net-zero emissions target for its portfolio, creating potential misalignment with evolving regulatory requirements and stakeholder expectations. The organization’s Green Asset Taxonomy contains definitional ambiguities that could permit greenwashing, particularly for “light green” and “enabling” asset categories that might inappropriately classify high-carbon companies with relatively better performance. PSP’s exclusion of Scope 3 emissions from portfolio carbon footprint metrics limits visibility into full climate risk exposure across investee companies. The organization’s significant infrastructure and natural resources allocations could face material transition risks as climate policies evolve, requiring ongoing assessment and potential portfolio adjustments.

General Industry Considerations

Public pension funds face ongoing pressures from demographic changes, including aging member populations that could increase benefit payment obligations relative to contribution inflows over time. Market volatility and sustained low interest rate environments could pressure investment returns and potentially increase required contribution rates from plan sponsors. Evolving regulatory requirements around climate disclosure, cybersecurity, and governance practices may require additional compliance investments and operational changes.

Sources

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