What We Believe
Our responsibility is to manage the investment portfolio for the benefit of present and future plan members and their survivors.
Ontario Teachers' Investment Beliefs are a set of 12 guiding principles that spell out who we are and how we invest plan assets. They define our philosophy for earning superior returns and managing related risks to ensure the long-term sustainability of the pension plan. They support our Mission, Vision and Values. They set the tone for our internal and external relationships and are reflected in our strategies and our Responsible Investing approach.
Who We Are…
Our people drive our success. We develop, strengthen and retain our intellectual capital so we can remain successful through industry leadership and innovation. Collaboration within and among our asset classes is the key to unlocking our team's full value.
The best investment results come from people who are empowered to make decisions and are accountable for them. We respect humility and understand that not every decision will result in success.
The Ontario Teachers' brand is a strong and valuable asset. Our brand and culture give us a competitive advantage in attracting quality people and investments because they reflect a reputation for excellence and integrity, earned over many years. We collectively share a responsibility to protect and cultivate our brand.
How We Invest….
Taking risk is necessary to earn the returns required to meet our pension obligations. In so doing, we accept we will experience periodic investment losses.
We engage in active management, with a global perspective, to earn higher returns because we believe markets can be inefficient. Our approach to these inefficiencies is dynamic; we respond to market conditions. We pursue market inefficiencies that often exist in illiquid investments.
Our investment strategy considers our risk profile, our plan assets and our liabilities. Our long investment time horizon supports our primary goal of generating the superior returns required to fund our members' current and future pensions.
Total fund diversification, through effective portfolio construction, is fundamental to our success. Diversification allows us to spread risk across key factors such as time periods, geography, and economic outcomes, which reduces the adverse impact of any one investment loss on the fund overall.
Strong relationships support our success. We identify and cultivate relationships with like-minded partners globally to broaden our investment reach. We build success together based on cooperation, trust and transparency.
The returns we can expect will not be constant over time. Therefore, our investment strategy must adjust to reflect the potential reward relative to the investment risk. We must be flexible and disciplined as we adapt to business cycles and shifting investment environments.
Innovative strategies and our long-term horizon are powerful investment tools when used with sound risk and liquidity management. Derivatives can be used to improve diversification, which in turn reduces our total fund risk.
Investing is a business. As such, our results are net of our costs. Costs should be managed and linked to the investment value creation process.
Good governance is good business and contributes to sustainable values. We continually consider all risks in our investment process, including those related to environmental, social and corporate governance factors. We expect management teams and boards of directors to be responsive to their shareholders. We lead by example.