CIO at PSP Investments departs

The Canadian pension plan stated strong private debt returns with plans to expand earlier this year. 

The executive vice president and chief investment officer at the Canadian Public Sector Pension Investment Board, Daniel Garant, has officially resigned.

Garant stepped down from his post at PSP Investments on 30 June to pursue other career aspirations, a spokeswoman for fund confirmed in an email to Private Debt Investor. President and chief executive officer Andre Bourbonnais will fill the vacated position.

The firm declined to comment further on the CIO’s departure, which was first reported by Institutional Investor.

Garant assumed the CIO position in July 2015, after beginning his tenure at the Canadian pension plan in 2008, according to the article.

The shake-up at this level comes on the heels of a strong first quarter for the firm, particularly its growing private debt portfolio. That asset class showed a 27.5 percent return over the one-year period ending 31 March. This represents more than double its 12.4 percent target return for the asset class.

The Canadian pension plan boosted its private debt assets to C$4.4 billion ($3.33 billion; €2.96 billion) by March, up from C$640 million a year prior. By comparison, PSP’s total assets under management reached C$135.6 billion, a 16.1 percent increase from C$116.8 billion in AUM a year earlier.

Like private debt, the firm’s real estate portfolio also showed a return above its benchmark over the one-year period ending 31 March, hitting 10.8 percent compared with its 6.2 percent target. The report cited office portfolios in Paris, London and Australia and senior retirement and healthcare portfolios in Canada and the UK for driving the allocation’s strong performance. The asset class grew slightly to C$20.6 billion in net assets, up from C$20.4 billion 31 March 2016, with nearly 43 percent of its portfolio in the US.

“The team has been growing at a fast pace and we’ll continue to expand throughout fiscal 2018,” David Scudellari, senior vice president and head of principal debt and credit investments at PSP Investments, told Private Debt Investor in an email in March.