Thanks to a clear vision and well-thought-out plan, our employees carried out a broad range of strategic initiatives – with contributors and beneficiaries at the heart of everything we do.
For fiscal year 2017, our net portfolio return was 12.8%. We delivered a five-year net annualized return of 10.6%, exceeding our policy benchmark, and exceeded our long-term return objective by delivering a net annualized return of 6.0% on a 10-year basis. We also reached $135.6 billion of net AUM, and expect to manage $200 billion by 2025.
The entire organization worked as one to advance the five strategic axes of our Vision 2021 plan:
Cultivate One PSP: We created total fund portfolios to pursue opportunities that benefit overall performance.
Improve our brand locally and internationally: We made significant strides in defining our identity and increasing our visibility to support our growth. We also evolved our internal communications approach to foster increased openness, dialogue and transparency.
Increase our global footprint: We completed the NY office hiring plan and opened our London–based European hub, with top-tier teams in Private Equity, Private Debt, Real Estate and Infrastructure. We plan to follow this up with an office in Asia.
Increase scalability and efficiency: We introduced a Global Equity Investment and Research Platform to optimize knowledge sharing and risk management.
Develop our talent: We focused on our new talent attraction and retention strategy, and reviewed our compensation plan. In fiscal year 2018, we will implement a new compensation plan to encourage accountability and better align individual and organizational performance.
The changes we implemented are empowering our people to embrace our mission and fulfill our shared purpose: to contribute to the financial security of the contributors and beneficiaries who have served Canada.
I would like to thank our employees for their hard work and commitment; the senior management team for steering our strategic direction; and the Board of Directors for the confidence they place in us, and the oversight and guidance they provide.
President and Chief Executive Officer