Ontario Teachers' net assets at $207.4 billion at year-end 2019
Ontario Teachers' net assets at $207.4 billion at year-end 2019
PR83526
TORONTO, April 1, 2020 /PRNewswire=KYODO JBN/ --
- Record investment income of $20.2 billion during the year
Ontario Teachers' Pension Plan Board (Ontario Teachers') today announced a
total-fund net return of 10.4% for the year. Net assets reached $207.4 billion
as of December 31, 2019, a $16.3 billion increase from December 31, 2018.
Ontario Teachers' earned $20.2 billion in investment income in 2019, the most
in the organization's history.
"Ontario Teachers' diversified, high-quality portfolio achieved a total-fund
net return of 10.4% and our net assets reached $207.4 billion to end the year,"
said Jo Taylor, President and Chief Executive Officer. "The investment world
since then has changed dramatically due to COVID-19, which is having an impact
on all of our activities. We are highly focused on the wellbeing of our members
and employees, and our team has demonstrated remarkable agility as we adapt the
way we work while maintaining our high levels of service."
As of January 1, 2020, the plan was fully funded using prudent assumptions for
a seventh consecutive year, with 100% inflation protection being provided on
all pensions.
As at December 31, 2019, Ontario Teachers' has had an annualized total-fund net
return of 9.7% since inception. The five- and ten-year net returns, also as at
December 31, 2019, were 7.8% and 9.8%, respectively.
"Each of our asset classes achieved positive returns during the year, showing
the value of a well-constructed and diversified portfolio. We had particularly
strong returns in equities and fixed income," said Ziad Hindo, Chief Investment
Officer. "This year was a transformational year, with a number of significant
transactions conducted globally, the launch of Teachers' Innovation Platform to
invest in disruptive technology, and the creation of Koru, an incubator that
partners with our portfolio companies to design and build new digital
businesses."
As often is the case in years when public equity markets have exceptional
returns, Ontario Teachers' diversified portfolio trailed its benchmark. Strong
returns in private assets did not keep up with robust public equity markets,
many of which were up more than 20% during the year. In 2019, Ontario Teachers'
underperformed its benchmark by 1.8% or $2.7 billion.
Detailed Asset Mix
2019 2018
Effective Net Effective Net
Investments Investments
at Fair Value at Fair Value
(Canadian $ Asset Mix (Canadian $ Asset Mix
billions) % billions) %
Equity
Publicly traded $ 35.8 18% $ 31.6 17%
Non-publicly traded 39.3 19 33.4 18
75.1 37 65.0 35
Fixed income
Bonds 72.7 36 58.2 31
Real-rate products 20.4 10 19.5 10
93.1 46 77.7 41
Inflation sensitive
Commodities 17.6 9 10.6 6
Natural resources 8.2 4 8.1 4
Inflation hedge 10.3 5 8.7 5
36.1 18 27.4 15
Real assets
Real estate 28.7 14 27.5 15
Infrastructure 17.0 8 17.8 9
Real-rate products — — 4.3 2
45.7 22 49.6 26
Credit 16.3 8 15.2 8
Absolute return strategies 16.5 8 12.6 7
Overlay 0.3 — (0.4) —
Money market (79.1) (39) (59.5) (32)
Net investments[1] $ 204.0 100% $ 187.6 100%
[1] Net investments, which comprise investments less investment-related
liabilities per the December 31, 2019 Consolidated Statements of Financial
Position, exclude all other assets and liabilities.
Total fund local return was 12.8%. Ontario Teachers' invests in dozens of
global currencies and in more than 50 countries but reports its assets and
liabilities in Canadian dollars. In 2019, currency had a negative 1.8% impact
on the total fund, resulting in a loss of $3.5 billion. The currency loss was
mainly driven by the appreciation of the Canadian dollar relative to various
global currencies, particularly the U.S. dollar.
About Ontario Teachers'
The Ontario Teachers' Pension Plan Board (Ontario Teachers') is the
administrator of Canada's largest single-profession pension plan, with $207.4
billion in net assets (all figures at December 31, 2019). 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 9.7% since the plan's founding in
1990. Ontario Teachers' is an independent organization headquartered in
Toronto. Its Asia-Pacific region office is located in Hong Kong 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 329,000 active and retired teachers. For more information, visit
otpp.com (
) and follow us on Twitter @OtppInfo (
).
Contact:
North America
Dan Madge
Phone: +1 (416) 419-1437
Email: dan_madge@otpp.com
Europe and Asia
Oliver Mann
Phone: +44 203 7551 607
Email: Oliver.Mann@kekstcnc.com
Note to Editors: Please See Attachments:
-- Net Assets graph (
)
-- Link to Annual Report (
)
-- Benchmarks Used to Measure Fund Performance (
)
-- Member Services – Key Statistics (
)
-- Download high resolution pictures: Jo Taylor and Ziad Hindo (
)
SOURCE Ontario Teachers' Pension Plan
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