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Moving forward together: mid-year results and your pension

August 25, 2020

A message from our Chief Operations and Pension Officer

We understand unsettled markets can be worrisome for many of you, so we want to reassure you that your pension remains secure.

COVID-19 has shocked economies around the world but we’re confident our strong foundation and solid investment strategy will see us through this turbulent time. This volatility may be unprecedented, but we’ve been through periods of market uncertainty before. We’ll continue to use our learnings and expertise to help keep the plan sustainable over the long term. That said, we expect this pandemic to have lasting repercussions, and we’ll remain vigilant and agile until we understand its full impact.

Six-month results for 2020

We announced our mid-year results today. Here are our performance highlights, as of June 30, 2020:

  • Net assets totaled $204.7 billion.
  • Total-fund net loss was 0.4% for the first six months of the year.
  • We had an annualized total-fund net return of 9.5% since inception in 1990.
  • Our diversified and high-quality portfolio has so far been quite resilient, highlighting the benefits of our balanced capital allocations and long-term investment approach.
  • In the years before the pandemic, we had positioned the portfolio more defensively. This provided stability and helped offset losses experienced by our private assets.

Read our press release and financial statements.

Remember, long-term results matter most

Mid-year results only provide a snapshot of performance over a six-month period. Long-term results provide a true measure of the effectiveness of our investment strategy.

When thinking of your pension, it’s always important to remember:

  • long-term performance counts for pension plans, and
  • your pension is part of a defined benefit plan.

Unlike RRSPs or defined contribution plans, pensions paid under a defined benefit plan are based on a formula of service and salary, not on the fund's value on the day a person retires. This means we’ll continue to pay pensions each month.

While we couldn’t have anticipated a global pandemic, we had planned for an economic downturn. We’re in good shape, and your pension is safe and secure.

International roadmap

Investing globally, an essential element of our long-term investment strategy, is key to ensuring we deliver on our pension promise. During the first six months of the year, we secured investments in several regions. We’ll continue to look for opportunities to expand our international footprint in the right territories.

Long-term success

We know you have a lot riding on your pension. Whether you’re still teaching or retired, you’ve worked hard to earn retirement security.

While most of our employees are working remotely, we’re well prepared to support your financial security and well-being. Our talented team continues to demonstrate incredible adaptability and positive spirit as they serve your daily needs and build for the future.

As we continue to face uncertainty, please know we’re here for you. Visit this website, email us at inquiry@otpp.com, follow us on Facebook or call us at 1-800-668-0105. While you may experience slower than usual response times, we remain committed to providing you with the best service we can.

Sincerely,

Tracy Abel
Chief Operations and Pension Officer