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Investor Relations

Understanding our investment funding strategy

$221.2B

Net assets as of December 31, 2020

331,000

Active members and pensioners

9.3%

10-year total-fund
net return per annum

As of June 30, 2021

Global institutional investors on the cutting edge.

Learn about our investment funding strategy

Ontario Teachers' investment funding strategy is focused on diversifying the sources of investment funding, managing the cost and maturity profile, maintaining a presence in key funding markets, and supporting the overall management of the currency exposure of our global investment program. The investment funding strategy contains both short- and long-term funding sources, which collectively diversify and mitigate risk.

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About Ontario Teachers’ Finance Trust (OTFT)

OTFT issues commercial paper and term-debt that is fully, unconditionally and irrevocably guaranteed by Ontario Teachers'. OTFT primarily generates funding through fixed income products in international markets. Since its inception in 2015, OTFT has issued U.S. and Canadian dollar-denominated commercial paper in addition to U.S. dollar, Canadian dollar and EUR benchmark-sized term debt targeting international institutional investors.

OTFT issuance summary

In September 2017, OTFT issued its inaugural US$1.75 billion five-year senior unsecured notes. Since then, OTFT has issued at least one U.S. dollar benchmark notes offering per calendar year. OTFT is committed to being a regular issuer in the U.S. dollar market. OTFT further broadened into Euro, Canadian dollar and Green Bond markets in 2020 and issued its inaugural bond denominated in Pound sterling in 2021. The coupon and principal paid to investors are senior to pension liabilities.

Issuance Currency Size Maturity Date Coupon
September 2017 USD $1.75 billion September 19, 2022 2.125%
April 2018 USD $2.00 billion April 16, 2021 2.750%
September 2019 USD $1.75 billion September 12, 2024 1.625%
April 2020 USD $1.00 billion April 15, 2025 1.375%
May 2020 EUR €1.50 billion May 06, 2025 0.500%
September 2020 USD $1.50 billion September 29, 2023 0.375%
September 2020 USD $1.50 billion September 27, 2030 1.250%
October 2020 USD $1.25 billion October 19, 2027 1.100%
November 2020 Green Bond EUR €750 million November 25, 2030 0.050%
April 2021 USD $1.50 billion April 16, 2031 2.000%
May 2021 EUR €1.25 billion May 19, 2028 0.100%
May 2021 EUR €1.25 billion May 20, 2041 0.900%
September 2021 USD $2.00 billion September 21, 2026 0.875%
October 2021 GBP £500 million May 15, 2026 1.125%
November 2021 Green Bond EUR £500 million November 24, 2051 0.950%

 

Additional information on the debt issuances can be found on the Euronext Dublin website.

Credit ratings

OTFT issuances are highly rated benefitting from the full, unconditional and irrevocable guarantee by Ontario Teachers'.

Major factors supporting the rating of Ontario Teachers' include:

  • Consistently high investment returns
  • Sophisticated risk culture across the organization
  • Robust liquidity ensuring strong coverage by high-quality liquid assets
  • Innovative pension funding levers, including flexible inflation protection mechanism
  • Strong legislative and governance frameworks
  • Independence from sponsors

 

Agency Short-term rating Long-term rating Outlook Recent Reports
DBRS R-1(High) AAA Stable Download
Moody’s P-1 Aa1 Stable Download
Standard & Poor’s A-1+ AA+ Stable Download

About us

Our active investment model, strong governance structure

and strategic relationships make us a partner of choice around the world.

Learn about our investments