Ontario Public Service Pension Plan, Toronto, returned 11.9% in calendar year 2012, according to its annual report posted on the website of the Ontario Pension Board, the plan's administrator.
As of Dec. 31, the plan had C$18.99 billion (US$18.37 billion) in assets and C$20.36 billion in liabilities for a funding ratio of about 93%, up from about 89% a year earlier.
The plan's investments managers in all major classes outperformed their benchmarks, said Jill Pepall, chief investment officer, in the annual report. “Asset mix was also a contributor,” she said. “We held an overweight position in the strong U.S. equity market and an underweight position in the weaker Canadian equity and fixed-income markets. We also had significant exposure to emerging markets, which performed well. An increased and successful focus on private markets — particularly real estate — also played an important role. In addition, our increased allocation to specialty mandates added to returns.”
The plan's asset allocation as of Dec. 31 was 26% Canadian fixed income, 23.4% international ex-U.S. equities, 14.6% real estate, 13.6% U.S. equities, 6.6% Canadian equities, 4.6% special Ontario debt, 3.2% international fixed income, 0.9% infrastructure, 0.5% private equity, and the rest in cash and short-term investments.
The plan's annual rate of return is 8.5%.