Succeeding Claude Lamoureux is a daunting task. By every measure – service delivery, asset growth, staff development, corporate conduct and international acclaim – Claude oversaw the creation of a world-renowned organization.
My job is to build upon his legacy and to responsibly manage all of these assets so they continue to serve future generations. In addition, my staff and I will continue working closely with the plan sponsors – the Ontario Teachers’ Federation (OTF) and the provincial government – to better position the plan to meet ongoing funding challenges.
Positive investment returns
Although the past year was a trying one for Canadian investors, I am pleased to report that the plan’s investment portfolio continued to grow, with $108.5 billion in net assets at December 31, 2007, compared to $106.0 billion at the end of 2006.
The fund generated $4.7 billion in investment income despite the adverse impact on foreign investments of the rising Canadian dollar, negative fallout in international credit markets from the U.S. subprime mortgage crisis, and the collapse of Canada’s market for non-bank asset-backed commercial paper (ABCP).
Our 4.5% rate of return exceeded the 2.3% total fund benchmark. Although we outperformed our benchmark, poor market conditions in general meant our returns fell short of the amount required to match the growth of the plan’s liabilities. Continued market turbulence could also impact our performance in 2008.
High marks for Member Services
Our Member Services team has again scored top marks for plan administration: a 9 out of 10 in member service satisfaction ratings. Last year, we further developed the technology essential for efficient and effective information processing. This allows our front-line staff to use their knowledge to help members understand complex pension rules and make informed decisions, as explained in Member Services.
