The Public Sector Pension Investment Board reported an income of $146.8 million and a rate of return of 2.73% for the fiscal year ending March 31, in its financial results released Wednesday.

During fiscal year 2002, PSP Investments received $3.0 billion in net contributions from the Federal Public Service, Canadian Forces and Royal Canadian Mounted Police pension plans. Total net assets of the three plans as of fiscal 2002 year-end were $5.6 billion compared with $2.7 billion a year earlier.

“We are happy to have produced positive results in a difficult market environment,” commented Adel Sarwat, PSP Investments President and CEO in a release.

PSP Investments began implementation of active investment management during the second half of fiscal year 2002. This is being done through an in-house team of portfolio managers as well as external investment managers. At the end of fiscal year 2002, 31.4% of total assets were managed actively. Active management refers to investments that do not have to track a specified market index.

Active management of Canadian equities became possible following a change in the regulations governing PSP Investments that went into effect in October 2001.

“We are putting together a team of experts with proven capabilities in their respective fields.” said Sarwat.

At the end of fiscal year 2002, 35% of total assets were invested in Canadian equities, 30% in foreign equities and 35% in fixed income and cash equivalent securities. Also 70.4% of the assets represented assets of the Public Service pension plan, 21.9% assets of the Canadian Forces pension plan and 7.7% assets of the Royal Canadian Mounted Police pension plan.