Ontario Teachers' Pension Plan, Toronto, returned 13% in 2012, surpassing its 11% benchmark, according to a news release Tuesday.
Total assets increased C$12.4 billion to a record high C$129.5 billion (US$127.8 billion). Investment earnings for the year were C$14.7 billion, up from C$11.7 billion in 2011. The plan was 97% funded as of Jan. 1 with a C$5.1 billion funding shortfall.
Real estate was the top performer for the year with a 19.4% return, topping the 15.5% benchmark. Following real estate was private capital, 18.6%, above its 13.3% benchmark; real assets, 14.7%, outperforming the 10.6% benchmark; public and private equity, 14.2%, against the 13.1% benchmark; infrastructure, 8.4% compared to an 8% benchmark; and fixed income, 5.1%, against a 4.5% benchmark.
The only asset classes to lag their benchmarks were timberland, at 3.4% vs. the 3.5% benchmark, and commodities, which returned -1.9% against a -1.1% benchmark.
The pension fund's assets have nearly doubled from the C$66.2 billion level in 2002. The annualized return for the 10 years is 9.6%.
Separately, spokeswoman Deborah Allan said the board is in the process of formulating a succession plan for Jim Leech, president and CEO, who announced last year that he would retire at the end of 2013.
There is no timeline for hiring a replacement, and Ms. Allan declined to comment on whether the board will use an executive search firm.