Colleges of Applied Arts and Technology Pension Plan, Toronto, returned a net 11.1% in the year ended Dec. 31, the $C15.8 billion ($12.4 billion) pension plan announced in its annual report released Wednesday.
The one-year net return exceeded its 10.7% policy benchmark return. In the five and 10 years ended Dec. 31, the pension fund returned an annualized net 10.2% and 9.9%, respectively, above the respective benchmarks of 8.8% and 8.5%.
In the year ended Dec. 31, 2019, the pension fund returned a net 16%, equal to its policy benchmark.
By asset class, emerging markets equities had the highest return for the year ended Dec. 31, with a net return of 19.7% (above its 16.2% benchmark), followed by private equity at a net return of 17.6% (above its benchmark of 17.2%).
Other asset class returns were: Nominal long-duration fixed income, returning a net 13.5% (above its 11.9% benchmark); real-return fixed income, with a net return of 13.1% (equal to its benchmark); global developed equities, at a net return of 11.8% (below its 13.9% benchmark); nominal universe fixed income, a net 9.9% (above the 8.7% benchmark); real assets, 7% (5%); and commodities, -21.8% (-25.1%).
As of Dec. 31, the actual allocation was: 29.2% global developed equities; 18% nominal long-duration fixed income; 14.7% real assets; 13.2% private equity; 10.2% emerging markets equities; 5% commodities; 4.8% real-return fixed income; 4.6% nominal universe fixed income; and 0.3% cash, cash equivalents and other.