Ontario Teachers' Pension Plan, Toronto, returned a net 8.6% in 2020, bringing its total assets to C$221.2 billion ($173 billion) as of Dec. 31.
The plan fell short of its benchmark return of 10.7%, according to OTPP's newly released 2020 annual report.
For the five and 10 years ended Dec. 31, the pension fund returned an annualized net 7% and 9.3%, respectively, compared with the respective benchmarks of 7% and 8.5%.
For the year ended Dec. 31, 2019, the pension fund returned a net 10.4%.
By asset class, fixed income had the highest return for the year ended Dec. 31 at a net 20.7% (above its 20.6% benchmark); innovation returned 16.3% (16.3% benchmark); public equities returned 15.2% (11.2%); private equity, 13.5% (12.3%); commodities, 4.3% (4.2%); credit, 2.6% (1.5%); infrastructure, 2.6% (7.5%); inflation hedge, -4.4% (-4.4%); natural resources, -11.2% (-8.5%); and real estate, -13.7% (-4.7%).
The actual allocation as of Dec. 31 was 19.4% public equities, 19.2% private equity, 15.9% fixed income, 11.5% real estate, 8.3% credit, 8.2% infrastructure, 8.1% commodities, 6.2% absolute-return strategies, 5.3% inflation hedge, 3.4% natural resources, 1.6% innovation, 0.9% real-rate products, 0.4% overlay and -8.4% money market.
According to the annual report, the money market allocation represents the "net implicit funding for the overall asset mix" and includes "implied funding from derivatives used to efficiently gain passive exposure to global equity and commodity indices."
