Ontario Teachers’ earned 10.4 net return last year as assets reach $207.4B

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TORONTO — The Ontario Teachers’ Pension Plan Board says it earned a net return of 10.4 per cent last year with net assets reaching $207.4 billion.

The pension fund manager says its investment income reached a record $20.2 billion as of Dec. 31.

Despite the gains, Ontario Teachers’ portfolio underperformed its benchmark by 1.8 per cent or $2.7 billion as returns in private assets didn’t keep up with robust equity markets.

The plan which provides pensions for 329,000 active and retired teachers says for a seventh consecutive year full inflation protection was being provided on all pensions.

Ontario Teachers’ says its annualized total-fund net return has been 9.7 per cent since inception in 1990 and the five and 10-year returns reached 7.8 and 9.8 per cent respectively.

All asset classes achieved positive returns during the year, led by equities and fixed income, particularly bonds. Inflation-sensitive investments grew nearly 32 per cent.

“The investment world since (year-end) has changed dramatically due to COVID-19, which is having an impact on all of our activities,” CEO Jo Taylor said.