Net assets reach $221.2 billion at year-end
TORONTO, March 29, 2021 /CNW/ - Ontario Teachers' Pension Plan Board (Ontario Teachers') today announced a total-fund net return of 8.6% for the year. Net assets reached $221.2 billion as at December 31, 2020, a $13.8 billion increase from a year earlier. Ontario Teachers' earned $18.0 billion in investment income in 2020.
"Our portfolio proved to be very resilient during a turbulent year. Through the headwinds of a global pandemic and volatile investment landscape, we delivered strong financial results and high service levels for our members," said Jo Taylor, President and Chief Executive Officer. "Our ability to navigate the many challenges posed in 2020 was anchored around the skill, agility and application of our team, which augurs well for the future despite the ongoing market uncertainties."
As of January 1, 2021, the plan was fully funded for an eighth consecutive year with a preliminary surplus of $8.5 billion using prudent assumptions, with 100% inflation protection being provided on all pensions. The plan's funding ratio was 103%.
As at December 31, 2020, Ontario Teachers' has had an annualized total-fund net return of 9.6% since inception. The five- and ten-year net returns were 7.0% and 9.3%, respectively.
"The pandemic highlighted the importance of robust portfolio diversification across different assets, geographies and sectors," said Ziad Hindo, Chief Investment Officer "Our strong results were a result of significant exposure to fixed income and outstanding performance by our public and private equity asset classes."
Detailed Asset Mix
2020 |
2019 |
|||
Effective Net |
Asset |
Effective Net |
Asset |
|
Equity |
||||
Publicly traded |
42.4 |
19 |
35.8 |
18 |
Non-publicly traded |
41.8 |
19 |
39.3 |
19 |
84.2 |
38 |
75.1 |
37 |
|
Fixed income |
||||
Bonds |
17.2 |
8 |
72.7 |
36 |
Real-rate products |
17.4 |
8 |
20.4 |
10 |
34.6 |
16 |
93.1 |
46 |
|
Inflation sensitive |
||||
Commodities |
17.7 |
8 |
17.6 |
9 |
Natural resources |
7.4 |
4 |
8.2 |
4 |
Inflation hedge |
11.5 |
5 |
10.3 |
5 |
36.6 |
17 |
36.1 |
18 |
|
Real assets |
||||
Real estate |
25.2 |
12 |
28.7 |
14 |
Infrastructure |
17.8 |
8 |
17.0 |
8 |
Real-rate products |
1.9 |
1 |
— |
— |
44.9 |
21 |
45.7 |
22 |
|
Innovation |
3.5 |
2 |
— |
— |
Credit |
18.0 |
8 |
16.3 |
8 |
Absolute |
13.6 |
6 |
16.5 |
8 |
Overlay |
0.8 |
— |
0.3 |
— |
Money market |
(18.3) |
(8) |
(79.1) |
(39) |
Net investments1 |
$217.9 |
100% |
$204.0 |
100% |
1 Net investments, which comprise investments less investment-related liabilities per the December 31, 2020. Consolidated Statements of Financial Position exclude all other assets and liabilities. |
Total fund local return was 9.4%. Ontario Teachers' invests in dozens of global currencies and in more than 50 countries but reports its assets and liabilities in Canadian dollars.
"I want to personally thank the entire Ontario Teachers' team for their tireless efforts in 2020. I am incredibly proud of what we accomplished and how we navigated through the pandemic while delivering on our key investing and member service activities. As we look to the balance of 2021, we remain focused on delivering for our members, and continuing to strive for investment excellence while leaving a lasting, positive impact on the world," concluded Taylor.
About Ontario Teachers'
The Ontario Teachers' Pension Plan Board (Ontario Teachers') is the administrator of Canada's largest single-profession pension plan, with $221.2 billion in net assets (all figures at December 31, 2020). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.6% since the plan's founding in 1990. Ontario Teachers' is an independent organization headquartered in Toronto. Its Asia-Pacific region offices are located in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario's 331,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
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SOURCE Ontario Teachers' Pension Plan
Dan Madge, Phone: +1 (416) 419-1437, Email: [email protected]
Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of $247.2 billion as at December 31, 2022. We invest in more than 50 countries in a broad array of assets including public and private equities, fixed income, credit, commodities,...
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