OPTrust, which manages assets of the Ontario Public Service Employees Union Pension Plan, Toronto, returned 12% in 2014, vs. its custom benchmark’s 6.2% return and its 2013 return of 11.7%.
Assets rose to C$17.5 billion ($14.3 billion) as of Dec. 31, up 10% from a year earlier. Net investment income for the year was C$1.8 billion, with C$515 million in total contributions and C$798 million in benefit outflows.
A 48% return on infrastructure powered the 2014 investment gains on the strength of European investments, specifically OPTrust’s investment in Porterbrook Leasing Co., a U.K. rail equipment leasing firm, said Karen Danylak, OPTrust spokeswoman.
However, declining oil prices and overall sector volatility led to a 36.2% loss in its energy commodities portfolio.
Among other asset classes, fixed income returned 7.5%; public equities, 11.8%; private equity, 11.3%; and real estate, 10%.
OPTrust’s current target allocation is 22% global equities, 20% fixed income, 15% each infrastructure and real estate, 10% private equity, 8% Canadian equities, 5% energy commodities, and 2.5% each real return bonds and cash.
OPTrust was 101% funded as of Dec. 31, said Ms. Danylak.
Further details on OPTrust’s 2014 returns will be disclosed when its annual report is submitted to the Ontario Legislature later this spring.
