Ontario Teachers’ Pension Reports 1.9% Return for 1H 2023

The board of the Ontario Teachers’ Pension Plan reported a 1.9% return for the first six months of the year and a 4.8% return for the 12 months ending June 30, as the fund’s net assets rose to C$249.77 billion ($185.15 billion) from C$242.50 billion in June 2022.

“Our investment portfolio is purposely designed to help us achieve stable returns over the long term, and our half-year results demonstrate that our portfolio construction is working as planned,” Jo Taylor, president and CEO of OTPP, said in a release. “Our balanced portfolio positions us well to navigate markets that we anticipate will continue to be volatile in the coming years.”

The pension fund also reported five- and 10-year annualized net returns of 7.0% and 8.6%, respectively, and a 9.4% annualized return since its inception in 1990.

The pension fund’s public equity investments rose to C$23.3 billion as of the end of June, from C$21.9 billion at the start of the year, while the value of its private equity investments increased to C$60.7 billion from C$58.3 billion during the same period. OTPP’s fixed-income holdings increased during the first half of the year to C$118 billion from C$76.2 billion, while its infrastructure and real estate holdings increased to C$42.4 billion and C$29.3 billion, respectively, from C$39.8 billion and C$28.1 billion, respectively.

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“We saw positive returns across multiple asset classes, including public and private equities, infrastructure, and credit over the course of the first six months of 2023,” OTPP CIO Ziad Hindo said in a release. “Looking ahead, we will remain disciplined as we pursue attractive investment opportunities while building value within our high-quality portfolio of companies.”

According to OTPP, as of January 1, the plan was fully funded with a $17.5 billion funding surplus.