Report highlights strong investment gains
Ontario Teachers' Pension Plan Board (Ontario Teachers') has marked its start of the year with robust financial gains, according to its recently released mid-year report. The pension fund's six-month net return stands at 1.9%, with an even more substantial 4.8% return over the past 12 months, as of June 30.
"We continue to deliver positive investment returns for our members,” said Jo Taylor, president and chief executive officer.
“Our investment portfolio is purposely designed to help us achieve stable returns over the long term, and our half-year results demonstrate that our portfolio construction is working as planned.”
“Our balanced portfolio positions us well to navigate markets that we anticipate will continue to be volatile in the coming years,” he said.
"We saw positive returns across multiple asset classes including public and private equities, infrastructure, and credit over the course of the first six months of 2023," said Ziad Hindo, chief investment officer.
"Looking ahead, we will remain disciplined as we pursue attractive investment opportunities while building value within our high-quality portfolio of companies."
Financial health and strategy
Ontario Teachers' has maintained a fully funded status for the tenth consecutive year. This achievement is underscored by a $17.5 billion funding surplus as of January 1, 2023. The collaboration of Ontario Teachers' Federation and the Government of Ontario, both sponsors of the plan, has led to the decision to submit the valuation of the plan's health to regulatory bodies.
Diversified investment approach
During the first half of 2023, Ontario Teachers' further diversified its investment portfolio on a global scale. With approximately 80% of its assets managed internally, the pension fund focuses on dynamic and active investment strategies. The diversified approach spans across a wide range of assets including equities, infrastructure and natural resources, and real estate.
As one of Canada’s largest pension funds, Ontario Teachers' manages $249.8 billion in net assets as of June 30, 2023. The fund's investments span across more than 50 countries, encompassing various asset classes. This expansive investment strategy serves the dual purpose of delivering reliable retirement income to its diverse membership of 336,000 working members and pensioners.
