Ontario Teachers' Pension Plan, Toronto, delivered a net return of 4.2% for the six months ended June 30, said a news release Aug. 13.
For the five- and 10-year periods through June 30, OTPP’s annualized net returns were 6.7% and 7.3%, respectively.
Benchmark returns were not provided for midyear return.
Net assets totaled C$255.8 billion ($187 billion) as of June 30, up C$8.3 billion from year-end.
OTPP also returned a net 4.2% for the year ended June 30.
"Our results for the first half of 2024 reflect an ability to generate positive returns in a range of market conditions across our investment teams, and maintain a well-funded status for our members,” said Jo Taylor, president and chief executive officer, in the news release.
As of June 30, the pension fund’s actual asset allocation was 41% equity, 37% fixed income, 28% real assets, 21% inflation sensitive, 14% credit, 8% absolute-return strategies, and -49% funding and other.
Within the equity portfolio, 23% was allocated to private equity and 15% to public equity (the remaining 3% went to venture growth assets).
The fixed-income portfolio comprised bonds (33%) and real-rate products (4%).
The real assets portfolio comprised infrastructure (16%) and real estate (12%).
The inflation-sensitive segment was made up of commodities (11%), natural resources (5%) and inflation hedge assets (5%).
“Funding and other” includes funding for investments (term debt, bond repurchase agreements, implied funding from derivatives, unsecured funding, and liquidity reserves) and overlay strategies that manage the foreign-exchange risk for the total pension fund, the release noted.
OTPP had returned a net 1.9% for the fiscal year ended Dec. 31, 2023, well below its benchmark return of 8.7%.
