Media Contacts

Dan Madge
Ontario Teachers'
Phone: +1 416 730 6451
Email: media@otpp.com

Europe, Middle East and Africa
Oliver Mann
Kekst CNC
Phone: +44 203 7551 607
Email: otpp@kekstcnc.com

Asia-Pacific
Prudence Lai
Phone: +852 2903 9291
Email: OTPP_Asia@kekstcnc.com

Media Resources

 


Latest Tweets




Ontario Teachers’ delivers strong total-fund net return of 8.6%

March 30, 2021

Net assets reach $221.2 billion at year-end

TORONTO — Ontario Teachers’ Pension Plan Board (Ontario Teachers’) today announced a total-fund net return of 8.6% for the year. Net assets reached $221.2 billion as at December 31, 2020, a $13.8 billion increase from a year earlier. Ontario Teachers’ earned $18.0 billion in investment income in 2020.

“Our portfolio proved to be very resilient during a turbulent year. Through the headwinds of a global pandemic and volatile investment landscape, we delivered strong financial results and high service levels for our members,” said Jo Taylor, President and Chief Executive Officer. “Our ability to navigate the many challenges posed in 2020 was anchored around the skill, agility and application of our team, which augurs well for the future despite the ongoing market uncertainties.”

As of January 1, 2021, the plan was fully funded for an eighth consecutive year with a preliminary surplus of $8.5 billion using prudent assumptions, with 100% inflation protection being provided on all pensions. The plan’s funding ratio was 103%.

As at December 31, 2020, Ontario Teachers’ has had an annualized total-fund net return of 9.6% since inception. The five- and ten-year net returns were 7.0% and 9.3%, respectively.

“The pandemic highlighted the importance of robust portfolio diversification across different assets, geographies and sectors,” said Ziad Hindo, Chief Investment Officer “Our strong results were a result of significant exposure to fixed income and outstanding performance by our public and private equity asset classes.”

Detailed Asset Mix

  2020 2019
  Effective Net
Investments
at Fair Value
(Canadian $
billions)
Asset
Mix
%
Effective Net
Investments
at Fair Value
(Canadian $
billions)
Asset
Mix
%
Equity        
Publicly traded 42.4 19 35.8 18
Non-publicly
traded
41.8 19 39.3 19
  84.2 38 75.1 37
Fixed income        
Bonds 17.2 8 72.7 36
Real-rate products 17.4 8 20.4 10
  34.6 16 93.1 46
Inflation sensitive        
Commodities 17.7 8 17.6 9
Natural resources 7.4 4 8.2  4
Inflation hedge 11.5 5 10.3 5
  36.6 17 36.1 18
Real assets        
Real estate 25.2 12 28.7 14
Infrastructure 17.8 8 17.0 8
Real-rate
products
1.9 1
  44.9 21 45.7 22
Innovation 3.5 2
Credit 18.0 8 16.3 8
Absolute
return strategies
13.6 6 16.5 8
Overlay 0.8 0.3
Money market (18.3) (8) (79.1) (39)
Net investments1 $217.9 100% $204.0 100%

1 Net investments, which comprise investments less investment-related liabilities per the December 31, 2020. Consolidated Statements of Financial Position exclude all other assets and liabilities.

Total fund local return was 9.4%. Ontario Teachers’ invests in dozens of global currencies and in more than 50 countries but reports its assets and liabilities in Canadian dollars.

“I want to personally thank the entire Ontario Teachers’ team for their tireless efforts in 2020. I am incredibly proud of what we accomplished and how we navigated through the pandemic while delivering on our key investing and member service activities. As we look to the balance of 2021, we remain focused on delivering for our members, and continuing to strive for investment excellence while leaving a lasting, positive impact on the world,” concluded Taylor.

About Ontario Teachers’
The Ontario Teachers' Pension Plan Board (Ontario Teachers') is the administrator of Canada's largest single-profession pension plan, with $221.2 billion in net assets (all figures at December 31, 2020). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.6% since the plan's founding in 1990. Ontario Teachers' is an independent organization headquartered in Toronto. Its Asia-Pacific region offices are located in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario's 331,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.

Contact:
Dan Madge
Phone: +1 (416) 419-1437
Email: media@otpp.com

Note to Editors: Please See Attachments:

Search News

Node: corpappprd4.otpp.com