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Ontario Teachers’ delivers solid investment performance in 2022

2022 Highlights:

  • One-year total-fund net return of 4.0%, driven primarily by strong returns from inflation sensitive and infrastructure asset classes
  • Value added beyond benchmark of $4.4 billion 
  • The plan is fully funded for a 10th straight year
  • Ten-year annualized total-fund net return of 8.5% and return since inception of 9.5%
  • Advanced diversification with numerous investments globally and the establishment of new offices in Mumbai and San Francisco
  • Reduced portfolio carbon emissions intensity by 32% compared to the 2019 baseline and unchanged from 2021

TORONTO (March 14, 2023) -- Ontario Teachers’ Pension Plan Board (Ontario Teachers’) today announced a one-year total-fund net return of 4.0% for the year ended December 31, 2022, exceeding its benchmark return of 2.3%. Net assets grew to $247.2 billion (all figures are in Canadian dollars unless noted), making continued progress toward its goal of $300 billion in net assets by 2030.

These results contributed to the plan being fully funded as at January 1, 2023, with a $17.5 billion preliminary funding surplus. This marks the plan’s 10th consecutive fully funded year, underscoring its long-term financial health and sustainability.

“We delivered positive results for our members in 2022, leveraging our portfolio diversification and flexible asset allocation capabilities in a difficult investment environment,” said Jo Taylor, President & Chief Executive Officer. “Our relative investment performance in 2022 was impressive, as many public equity and fixed income indices experienced double-digit losses during the year. We were also able to maintain our fully funded status again for the 10th straight year, which will allow us to operate from a position of strength in the near term in markets that we expect to remain volatile.”

As at December 31, 2022, Ontario Teachers’ has delivered an annualized total-fund net return of 9.5% since inception in 1990, and five- and 10-year annualized total-fund net returns of 7.3% and 8.5%, respectively.

Investment Performance (all as at December 31, 2022)

Time Period On- yearFive-year 10-yearSince Inception
Total-fund net return4.0%7.3%8.5%9.5%

“Our diversified portfolio demonstrated resilience in 2022 with excellent returns from our infrastructure, inflation sensitive and private equity assets,” said Ziad Hindo, Chief Investment Officer. “The changes made to the portfolio over the past few years addressed many of the challenges of high inflation. Assets correlated to inflation such as commodities, natural resources and infrastructure all performed well last year.”  


Returns relative to benchmark

The one-year total-fund net return of 4.0% exceeded its benchmark return of 2.3%. This outperformance relative to its benchmark resulted in a value add of $4.4 billion and was driven largely by its private equity, infrastructure and credit asset classes, all of which meaningfully outperformed their benchmarks, partially offset by real estate and public equity which underperformed their benchmarks.

Fund returns by asset class are reported in the table below.

Portfolio Performance by Asset Class (all figures as at December 31)

Fund returns (%)1ActualBenchmarkActualBenchmark
Public equity(12.5)(10.2)9.013.1
Private equity6.1(3.9)29.017.5
Fixed income    
Real-rate products7.37.3 (1.4)(1.4)
Inflation sensitive    
Natural resources29.628.228.1 24.1
Inflation hedge9.
Real assets    
Real estate(3.5)
Credit3.60.03.5 1.2
Total-fund net return4.02.311.18.8


1 The total-fund net return is calculated after deducting transaction costs, management fees and investment administrative costs. Asset-class returns are calculated before deducting investment administrative costs.

2 Benchmarked to actual return during an initial incubation period, after which it will be measured against an active benchmark. Starting January 1, 2023, the innovation asset class will be compared to an active benchmark.

Detailed Asset Mix (all figures as at December 31)

Asset Class$ billions%$ billions%
Public equity$21.99%27.211%
Private equity58.324%55.123%
Fixed income    
Real-rate products9.84%11.95%
Inflation sensitive    
Natural resources10.14%9.4 4%
Inflation hedge12.75%12.25%
Real assets    
Real estate28.112%26.311%
Absolute Return Strategies18.78%14.96%
Funding for investments4(98.8)(40%)(34.7)(14%)
Net investments5$244.1100%$239.0100%


3 Includes strategies that manage the foreign exchange risk for the total fund.

4 Includes term debt, bond repurchase agreements, implied funding from derivatives, unsecured funding and liquidity reserves.

5 Comprises investments less investment-related liabilities. Total net assets of $247.2 billion at December 31, 2022 (2021 - $241.6 billion) include net investments and other net assets and liabilities of $3.1 billion (2021 - $2.6 billion).

Impact of currency

In 2022, a weaker Canadian dollar led to a foreign currency gain of $3.8 billion as assets denominated in foreign currencies appreciated in value when converted back into Canadian dollars. This corresponds with a return impact from currency of 1.5%. This gain, partially offset by our currency hedging activities, was primarily driven by the depreciation of the Canadian dollar against the U.S. dollar, influenced by the U.S. Federal Reserve’s proactive approach to raising interest rates to combat inflation.  

Investment Highlights

Ontario Teachers’ manages approximately 80% of its assets internally, with a focus on deploying capital into active strategies around the world. During 2022, the fund diversified investments globally and acquired assets across five continents. It also expanded its international footprint, opening offices in Mumbai and San Francisco. Being physically located in these key financial markets will provide more opportunities to source attractive investments and access local talent.


Transaction highlights in 2022 include:  


  • Acquired a co-control stake in GPA Global, a leading full-service provider of premium packaging solutions to brands in North America and Europe;
  • Acquired a significant majority stake in Sahyadri Hospitals, the largest private hospital chain in the Indian state of Maharashtra;
  • Agreed to acquire a stake in and combine group.ONE and dogado group, which will create a leading pan-European one-stop-shop provider of online presence solutions for small- and medium-sized enterprises. 


  • Acquired a 25% stake in SSEN Transmission, an electricity transmission network business that transports energy generated from renewable sources in Scotland to more than a quarter of the U.K. land mass, for total cash proceeds of £1.465 billion;
  • Acquired a 70% stake in the passive mobile tower infrastructure assets of Spark New Zealand for NZ$900 million. The tower company was subsequently rebranded as Connexa;
  • Partnered with Connexa on an agreement to acquire additional mobile tower assets from 2degrees Mobile for NZ$1.076 billion;
  • Invested up to US$805 million in a convertible equity portfolio financing with NextEra Energy Partners;
  • Formed a partnership with Mahindra Group to acquire a significant stake in Mahindra Susten, a leading player in Indian renewable energy sector;
  • Formed a joint venture with Corio Generation to develop 14 offshore wind projects with a capacity of up to 9GW;
  • Through our portfolio company Inversiones Grupo Saesa Ltda., acquired a 99.09% stake in the share capital of listed Chilean power transmission company Enel Transmisión Chile S.A. 


Natural Resources:

  • Provided funding to Haddington Ventures LLC’s ACES Delta Platform for the development of the world’s largest green hydrogen platform;
  • Partnered with Sprott Resource Streaming and Royalty, a global investment manager specializing in precious metals and real assets, in the US$225 million issuance of a royalty convertible note by Seabridge Gold’s wholly owned subsidiary, KSM Mining ULC.


 Real Estate:

  • Our real estate subsidiary Cadillac Fairview (CF) agreed to a joint venture with Thomas White Oxford Ltd to deliver Oxford North, UK, the £700 million new global innovation district;
  • CF committed an additional US$700M to IQHQ, following on its initial US$500M investment in November 2020. IQHQ is a leading life science real estate developer and manager with offices in San Diego and Boston;
  • CF and Boreal IM acquired three logistics assets in the U.K., 15 warehouses across four regions in the Netherlands, and two industrial parks in West London, U.K. and in the Port of Rotterdam, Netherlands;
  • CF began construction of a 288-unit residential rental building integrated with CF Rideau Centre, Ottawa’s largest and busiest shopping mall. 


Teachers’ Venture Growth:

  • Led a US$220 million Series D funding round for Taxfix, Europe's leading mobile tax app;
  • Led the €183 million Series E funding round for Alan, a leading European digital healthcare company.


Climate ambition and investment

As part of its journey to achieve net zero on its investment activities by 2050, Ontario Teachers’ has industry-leading interim targets to reduce portfolio carbon emissions intensity by 45% by 2025 and 67% by 2030, compared to its 2019 baseline. It has made meaningful progress toward the 2025 and 2030 interim targets, with portfolio carbon emissions intensity down 32% from the 2019 baseline. Portfolio carbon emissions intensity remained unchanged between 2021 and 2022 due to an increase in both market value and absolute emissions of its portfolio carbon footprint.

Ontario Teachers' added $3 billion in new green assets in 2022 including SSEN Transmission, Corio Generation, NextEra Energy and Haddington Ventures’ ACES Delta Platform. Green assets now total nearly $34 billion, approximately two-thirds of the way toward Ontario Teachers’ target of $50 billion.

In 2022, Ontario Teachers’ wholly owned subsidiary, Ontario Teachers’ Finance Trust (OTFT), issued a $1 billion green bond with the proceeds being invested in companies or assets that enable the net-zero transition, reduce emissions and build a sustainable economy. This was OTFT’s first green bond issuance in Canadian dollars. 


Investment costs

Ontario Teachers’ is committed to cost effectiveness and links its costs to the investment value creation process. Total investment costs including administrative expenses, transaction costs and external management fees totaled $1,886 million (78 cents per $100 of average net assets) in 2022, compared to $2,030 million (91 cents per $100 of average net assets) in 2021.

The decrease in investment costs was driven primarily by a decrease in transaction fees incurred from lower direct and fund acquisition volumes this year than in 2021, and a decrease in external management fees due to lower performance-based fees than in the prior year.


About Ontario Teachers’

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, natural resources, infrastructure, real estate and venture growth to deliver retirement income for 336,000 working members and pensioners.

With offices in Hong Kong, London, Mumbai, San Francisco, Singapore and Toronto, our more than 400 investment professionals bring deep expertise in a broad range of sectors and industries. We are a fully funded defined benefit pension plan and have earned an annual total-fund net return of 9.5% since the plan's founding in 1990. At Ontario Teachers', we don't just invest to make a return, we invest to shape a better future for the teachers we serve, the businesses we back, and the world we live in. For more information, visit and follow us on Twitter @OtppInfo.



Dan Madge 
Ontario Teachers' Pension Plan 
Phone: +1 416-419-1437 

Note to Editors: To read our Annual Report, please click here.

  • Annual Report (PDF)

Forward-Looking Statements

This annual report contains forward-looking information and statements that are intended to enhance the reader’s ability to assess the future financial and business performance of Ontario Teachers’. Forward-looking information and statements include all information and statements regarding Ontario Teachers’ current beliefs, targets, intentions, plans, and expectations concerning its objectives, future performance, strategies, and financial results, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as “trend,” “potential,” “opportunity,” “believe,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions. Because the forward-looking information and statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond Ontario Teachers’ control or are subject to change, actual results or events could be materially different. Although Ontario Teachers’ believes that the estimates and assumptions inherent in the forward-looking information and statements are reasonable, such information and statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such information or statements due to the inherent uncertainty therein. Ontario Teachers’ forward-looking information and statements speak only as of the date of this annual report or as of the date they are made and should be regarded solely as Ontario Teachers’ current plans, estimates and beliefs. Ontario Teachers’ does not intend or undertake to publicly update such statements to reflect new information, future events, and changes in circumstances or for any other reason. 


Cautionary Statement

In connection with our multi-faceted climate strategy, we have made certain commitments and set certain goals and targets (“Targets”). In establishing our Targets, we relied on various laws, guidelines, taxonomies, methodologies, frameworks, market practices and other standards (collectively, “Standards”) and also made good faith assumptions and estimates in establishing our Targets. Given the complex and evolving nature of the global response to climate change, these Standards may change over time, and our assumptions and estimates may prove incorrect or inaccurate for reasons we cannot foresee or predict. 

To monitor and report on our progress toward our Targets, we rely on data obtained from our portfolio companies and other third-party sources. Although we believe these sources are reliable, we have not independently verified this data, or assessed the assumptions underlying such data, and cannot guarantee its accuracy or completeness. We also attempt to improve accuracy in the data through an independent limited assurance review.  The data may be of varying quality or usefulness and may change over time as Standards evolve. These factors could impact our Targets and our ability to achieve them.