Ontario Teachers' Pension Plan, Toronto, returned a net 9.4% in 2024, below its benchmark of 12.9%, said a March 20 news release.
OTPP attributed the underperformance primarily to underperformance in its private equity and real estate portfolios.
For the five- and 10-year periods through Dec. 31, OTPP delivered average annualized net returns of 6.9% and 7.4%, respectively, vs. respective benchmark returns of 8.6% and 7.7%.
OTPP had returned a net 1.9% in 2023.
Net assets totaled C$266.3 billion ($185.1 billion) as of Dec. 31, up from C$247.5 billion a year earlier.
By asset class, the top performers in 2024 were venture growth equity, which returned a net 25.8%; followed by commodities (25.2%); public equity (23.2%); credit (17.2%); natural resources (13.3%); private equity (11.7%); inflation hedge assets (9.8%); infrastructure (9.1%) and fixed income (4.8%).
The poorest performer was real estate, which returned a net -0.7%.
Performance data for another asset class, absolute-return strategies, was not provided.
As of Dec. 31, the pension fund's actual asset allocation was 30% fixed income; 23% private equity; 17% infrastructure; 14% each public equity and credit; 11% each commodities and real estate; 9% absolute-return strategies; 5% natural resources; 5% inflation hedge assets; 4% venture growth equity; and -43% funding and other.
“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 fund, according to the 2024 annual report.
By region, as of Dec. 31, the pension fund had 36% of its assets invested in Canada; followed by the U.S. (33%); Europe, the Middle East and Africa (17%); Asia-Pacific (8%) and Latin America (6%).
OTPP also said in the news release that it manages about 80% of its assets internally, with a focus on deploying capital into a mix of active and passive strategies around the world.
