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Canadian pension manager PSP invests in Australian nut grower

As of March 31, 2016, the Natural Resources portfolio held assets of $2.5bn, 16.8% of which represented agriculture.

PSP Investments, one of Canada’s largest pension investment managers, has made a majority investment in Stahmann Farms Enterprises, Australia’s largest pecan grower, processor and supplier.

The investment is expected to support the nut grower’s regional development in and around its Toowoomba, Queensland headquarters and New South Wales, where its farms are located, “promoting skilled employment and leading to increased export earnings over the long-term,” SFE said in a statement.

“PSP Investments has a long-term investment horizon suitable for agricultural investment and is focused on developing strong partnerships with best-in-class, like-minded local operators,” the company said, which also noted that existing owners will retain a “substantial stake” in the business.

PSP Investments held $125.8 billion of assets under management as of September 30, 2016, investing funds on behalf of pension plans of the nation’s Public Service, the Canadian Armed Forces, the Royal Canadian Mounted Police and the Reserve Force.

PSP Investments’ Natural Resources investments include assets involved in the “production, harvest or extraction of natural resources, such as timber, agricultural commodities, oil and gas, and mining,” according to the investment manager’s website.

As of March 31, 2016, the Natural Resources portfolio held assets of $2.5 billion, 16.8 percent of which represented agriculture.

Among the investment manager’s broader investment objectives is to achieve an absolute return, net of expenses, equal to or greater than the actuarial rate of return over 10-year periods, which was set at 4.1 percent in 2011.

SFE and PSP Investments did not respond to requests for additional comment in time for publication.