Behind Ontario Teachers’ investment strategy
In a discussion with Simon Brewer from the Money Maze podcast, Ontario Teachers' CEO Jo Taylor explains the reasons for the plan's strong performance.
[Our Total Fund Management team] thinks about capital allocations on a five-year, but rolling basis each year, to try and make sure we've got agility and balance for the economic world that we see ahead of us.
The future also looks bright for Ontario Teachers'
"I was very clear when I took over at Teachers' in 2020 that from a base of $200 billion in assets, my target [by 2030] was to get us to $300 billion," Taylor says. This has motivated the investment team to work systematically to make that happen. "We give people a fair amount of delegated responsibility which they like, and we just have to make sure there are the right control environments around them in terms of what they're doing," added Taylor.
Taylor says the plan is fully funded on very conservative assumptions, enabling it to have a surplus for when times are a little leaner. "But we absolutely can't be complacent. When you have a plan of our scale with fully inflation-linked liabilities, you really have to be on making sure you continue to make every year some sort of positive contribution.”