We measure our investment performance on an actual basis and against a range of benchmarks. Benchmarking allows board members, plan members and employees to evaluate the effectiveness of our investment strategies and activities relative to the risks taken.
On a total-fund basis and for each asset group, we work to surpass the relevant benchmarks and when we do, we describe that as “value-added” performance.
As long-term investors, the most relevant measure of our performance is over several years. So, in addition to providing one-year returns, we also track four-, five- and 10-year net returns along with net returns since 1990 – when we began our investment program – all on an actual basis and against the benchmark
Investment performance
| 2022 | 2021 | 5-year | 10-year | Since Inception | |
|---|---|---|---|---|---|
| Total-fund net return | 4.0 | 11.1 | 7.3 | 8.5 | 9.5 |
| Benchmark return | 2.3 | 8.8 | 6.8 | 7.5 | 7.8 |
| Return above or (below) benchmark | 1.8 | 2.3 | 0.4 | 0.9 | 1.7 |
Investment Asset Class Benchmarks
| Investment Asset Class | Composite Benchmark - 2022 | |
|---|---|---|
| Equity | S&P/TSX 60 | |
| S&P 500 | ||
| MSCI All Country World ex Tobacco | ||
| MSCI All Country Asia | ||
| MSCI Euro (EMU) | ||
| MSCI Europe | ||
| MSCI Asia ex Japan | ||
| MSCI Frontier | ||
| MSCI LATAM ex Brazil | ||
| MSCI Country Indices (except New Zealand, Taiwan, Hong Kong and Brazil) | ||
| Local Country Indices (New Zealand, Taiwan, Hong Kong and Brazil) | ||
| Custom Global Long-term Equity | ||
| Custom Global Equity Benchmark1 | ||
| Fixed Income | Custom Canada Bond Universe (Short, Mid)1 | |
| Custom Provincial Long Bond1 | ||
| Custom U.S. Treasury Index1 | ||
| Custom Canada Real Return Bond1 | ||
| Custom Global Fixed Income Benchmark1 | ||
| Real Assets | IPD Canada Annual Property Total Return Index | |
| Custom Real Estate Debt Benchmark1 | ||
| Local CPI plus 3% plus country risk premium (Infrastructure & Real Estate ex Canada) | ||
| Custom Real Assets Benchmark1 | ||
| Custom Credit Benchmark | ||
| Inflation Sensitive | Goldman Sachs Commodities Index | |
| Goldman Sachs Commodities Index 3 Month Forward | ||
| NCREIF Timberland Index (U.S. Timber) | ||
| Local CPI plus 4% plus country risk premium (Natural Resources and Non-U.S. Timber) | ||
| Custom Gold Benchmark1 | ||
| Custom Commodities Benchmark1 | ||
| Custom Inflation Sensitive Benchmark1 | ||
| Credit | Markit iBoxx USD Liquid Investment Grade Index | |
| Markit iBoxx High Yield Index (USD, GBP, EUR) | ||
| Markit iBoxx USD Liquid Leveraged Loans Index | ||
| S&P European Leveraged Loan Index | ||
| JP Morgan Emerging Markets Bond Index Global Diversified | ||
| Custom China Sovereign Debt1 | ||
| Custom Credit Benchmark1 | ||
| Innovation | Custom Innovation Benchmark2 | |
| Absolute Return Strategy, Money Market, Overlay | Custom Canadian CDOR Index | |
| Custom Alternative Reference Rates Index (USD, EUR, GBP, CHF, AUD, JPY) | ||
| Custom Equity Hedge1 | ||
| Custom Currency Overlay1 | ||
| Custom Funding Benchmark1 | ||
1 Benchmarked to itself for total fund portfolios
2 The Innovation asset class was established in 2020, considered an active program and is benchmarked to itself during the initial 3-to-5-year incubation period.