Public Equities Deliver Growth for the Plan

We use equities (the common and preferred shares of both private and publicly traded companies) to deliver investment growth for Teachers'. We group our public equities investing activities into three categories:

Most of our public equities are managed in-house by Teachers' own investment professionals  who manage a portfolio that, in aggregate, is well diversified by investment type and geographic region.

 

No matter where we invest or what kind of company we own, our Responsible Investing  approach means our public equities group actively engages in promoting good corporate governance. This includes voting our shares, continually monitoring corporate financial and non-financial performance and making our views known to regulators. This approach has helped us to create value for the plan over the long run.

Performance

For the Period Ended December 31, 2012

After posting poor performance in 2011, equity markets in most countries rebounded in 2012 and produced double-digit one-year returns, although Canada was an exception with a return of 7%. Dividend yields in North America remained well above inflation and bond yields, and dividends added $1.3 billion to our one-year performance.

    1-Year Performance 4-Year Performance
Equities Assets
($billion)
Actual1
(%)
Benchmark2
(%)
Actual1
(%)
Benchmark2
(%)
Total 59.5 14.2 13.1 11.0 7.9
Canadian 11.4 5.2 8.1 9.1 10.2
Non-Canadian 48.1 16.5 14.5 11.5 7.1

1 Includes all equity assets including stock market indexes, long-term equities, Teachers' Private Capital, actively managed portfolios and relationship investing.

2 See benchmarks for details on benchmarks for all asset classes.