PSP Investments Posts 10.7% 10-Year Annualized Rate of Return as Net Assets Under Management Grow by 9.7% to $168 Billion in Fiscal Year 2019 - Seite 2

Portfolio 1.4B
1. This table
excludes Cash
and Cash
equivalents.
2. Annualized
return since
inception (3.3
years).
3. Annualized
return since
inception (2.2
years).

As of March 31, 2019:

Public Markets, which is composed of Public Markets and Absolute
Return Strategies (PMARS) and Fixed Income, finished the year with
$80.8 billion of net assets under management, an increase of $4.1
billion from fiscal year 2019. Overall, the group generated a
performance income of $3.6 billion, for a one-year return of 4.6%.
With an ending AUM of $51.0 billion, slightly down from $51.8 billion
in 2018, PMARS faced a volatile and challenging environment for
active investment management this fiscal year. Notable contributors
to PMARS' performance were the Global Investment Partnerships
Portfolio that performed well in these difficult conditions, adding
more than $110 million in value and the internally managed long-only
strategies which outperformed their respective benchmarks. In the
last five years, PMARS generated significant returns, with a
five-year annualized return of 9.3%. Fixed Income's assets under
management ended the year at $29.8 billion, up from $24.9 billion in
2018, generating a five-year annualized return of 4.8%.

Private Equity had net assets under management of $23.5 billion,
$4.1 billion more than in fiscal year 2018, and achieved strong
results with a one-year return of 16.1%. Performance income reached
$3.2 billion. This is a continuation of the improved performance that
began with a new investment strategy implemented during fiscal year
2016. The growth of the portfolio was mainly driven by acquisitions
of new direct and co-investments, largely offset with a record year
of dispositions, especially in the direct portfolio where we exited
investments in Orange Life Insurance and Sky Leasing, as well as
Antelliq, which closed after fiscal year-end. New co-investments were
made primarily in the industrial, health care, communications and
financial sectors with the acquisition of significant interests in
Alliant Insurance Services, Azelis and Wittur Group, among others.
In 2019, Private Equity signed new fund commitments of $3.5 billion,
through 16 new funds.

Private Debt had net assets under management of $10.5 billion, an
increase of $1.6 billion from the prior fiscal year, and generated
performance income of $837 million, resulting in a 9.2% one-year
return. The outperformance was mainly driven by credit selection and
fee income. The group deployed net $1.6 billion, reflecting $5.2