Ontario Teachers’ Pension Plan Earns 4.2% in 1st Half of 2024

The Ontario Teachers’ Pension Plan Board reported a 4.2% return for the first half of the year, raising its net asset value to C$255.8 billion ($189.3 billion) from C$243.9 billion at the beginning of the year. This is compared with a 1.9% investment return and C$249.77 billion gain in asset value during the first half of 2023.

The pension fund also announced that its investment portfolio rose the same 4.2% during the 12 months that ended June 30 and that it earned five- and 10-year annualized net returns of 6.7% and 7.3%, respectively, with a 9.3% annualized return since its inception in 1990. The OTPP is fully funded for the 11th consecutive year and had a C$19.1 billion preliminary funding surplus, as of January 1.

“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 OTPP President and CEO Jo Taylor in a statement.

The pension fund’s portfolio allocation to equities increased to C$103.8 billion, as of June 30, from C$91.4 billion at the end of 2023, while its fixed-income allocation declined to C$94.9 billion from C$95.8 billion. Inflation-sensitive investments rose in value to C$53.5 billion from C$45.4 billion during the first half, while its real estate and infrastructure investments rose to C$71.7 billion combined, from C$67.4 billion.

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Meanwhile, the value of its credit investments declined to C$34.8 billion at the end of June from C$38.6 billion at the start of the year, and its investments in absolute return strategies rose to C$20.5 billion from C$19.5 billion.

The OTPP also noted that during the first half of the year, Chief Operating Officer Tracy Abel announced that she will retire at the end of 2024 and that Mabel Wong was named chief financial officer, succeeding Tim Deacon.