Investing to Ensure Retirement Security for Ontario's Teachers – Today and Tomorrow
Ontario Teachers' invests around the world, in virtually every sector of the investment universe. Wherever we invest our goal is clear: to increase the value of our assets so the plan can pay pensions and meet its long-term funding needs. To do this, we use investment strategies and our experience as responsible investors, gained in markets around the world.
We report publicly on our investment performance on an annual basis following the end of each calendar year. Our most recent annual report was for the year ended December 31, 2017.
The graphs and tables below summarize key aspects of our assets and performance.
Strong Net Asset Growth Since Inception
As at December 31
| 2017 | 2016 | 4-year | 5-year | 10-year | Since Inception | |
|---|---|---|---|---|---|---|
| Total-fund net return | 9.7 | 4.0 | 9.4 | 9.6 | 7.6 | 9.9 |
| Benchmark return | 8.2 | 3.5 | 7.9 | 8.2 | 6.9 | 8.0 |
| Return above benchmark | 1.5 | 0.5 | 1.5 | 1.4 | 0.7 | 1.9 |
Net Investments and Rates of Return by Asset Class
As at December 31
| Net Investments (Canadian $ billions) | Rates of Return (percent) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1-year | 4-year | 5-year | ||||||||||
| 2017 | Actual | BM* | Actual | BM* | Actual | BM* | ||||||
| Equity | 17.6 | 15.4 | 13.3 | 12.0 | 16.0 | 14.8 | ||||||
| Publicly traded | 35.2 | 15.9 | 15.9 | 10.3 | 11.4 | 13.5 | 13.9 | |||||
| Non-publicly traded | 31.9 | 18.8 | 14.6 | 19.1 | 13.6 | 20.6 | 17.4 | |||||
| Fixed Income | 2.6 | 2.6 | 5.2 | 5.3 | 2.5 | 2.5 | ||||||
| Bonds | 41.4 | 3.6 | 3.6 | 4.0 | 4.1 | 2.6 | 2.6 | |||||
| Real-rate products | 20.0 | 0.6 | 0.6 | 6.5 | 6.5 | 2.3 | 2.3 | |||||
| Inflation sensitive | (3.2) | (4.0) | (4.4) | (6.3) | (2.8) | (4.3) | ||||||
| Commodities | 11.1 | (4.3) | (4.3) | (11.6) | (11.7) | (9.3) | (9.3) | |||||
| Natural resources | 6.6 | 1.3 | (1.4) | 11.0 | 7.2 | 12.0 | 8.8 | |||||
| Inflation hedge | 8.9 | (6.7) | (6.7) | – | – | – | – | |||||
| Real Assets | 10.9 | 7.1 | 10.7 | 6.8 | 11.5 | 7.6 | ||||||
| Real Estate | 25.5 | 6.9 | 7.3 | 9.6 | 7.5 | 10.3 | 8.4 | |||||
| Infrastructure | 18.7 | 18.2 | 8.0 | 12.5 | 6.3 | 13.3 | 7.2 | |||||
| Real -rate products | 1.5 | – | – | – | – | – | – | |||||
| Credit | 13.6 | 1.7 | 1.1 | – | – | – | – | |||||
| Absolute Return Strategies | 10.7 | |||||||||||
| Overlay | (0.3) | |||||||||||
| Money Market | (39.4) | |||||||||||
| Total-fund net return | 185.4 | 9.7 | 8.2 | 9.4 | 7.9 | 9.6 | 8.2 | |||||
*Benchmark
Diversified Assets Reflect Our Asset Mix Strategy
As at December 31 2017
*Money market provides funding for investments in other asset classes, including the Liability Driven Investment program.
Learn more about Asset Mix Strategy
Active Management Adds to the Plan's Assets
As at December 31
Additional 1% above the 10% member contributions is related to funding of the original plan deficit