Delivering retirement security for teachers
We invest around the world to pay pensions for teachers and meet our long-term funding goals. We report on our investment performance on a semi-annual basis.
$255.8B
in net assets
107%
Funding ratio
9.3%
Total-fund net return since inception
Net Assets
As at December 31, 2023 1
1 Net assets include investment assets less investment liabilities (net investments), plus the receivables from the Province of Ontario, and other assets less other liabilities.
As at December 31, 2023
Investment Performance
| 2023 | 20222 | 5-year | 10-year | Since Inception | |
|---|---|---|---|---|---|
| Total-fund net return | 1.9% | 4.0% | 7.2% | 7.6% | 9.3% |
| Benchmark return | 8.7% | 2.3% | 8.5% | 7.5% | 7.8% |
| Return above or (below) benchmark | (6.8%) | 1.8% | (1.3%) | 0.1% | 1.5% |
2Benchmark return and return above benchmark from 2022 do not add up to 4.0% due to rounding.
As at December 31, 2023
Portfolio Performance by Asset Class
Fund returns by asset class are reported in the table below.
| Fund returns (%)3 | Actual | Benchmark | Actual | Benchmark |
|---|---|---|---|---|
| 2023 | 2023 | 2022 | 2022 | |
| Equity | ||||
| Public equity | 20.0 | 20.3 | (12.5) | (10.2) |
| Private equity | 3.6 | 16.3 | 6.1 | (3.9) |
| Venture growth4 | (0.7) | 12.8 | (12.1) | (12.1) |
| 7.4 | 17.1 | 0.1 | (5.9) | |
| Fixed income | ||||
| Bonds | 0.6 | 0.6 | (5.9) | (5.9) |
| Real-rate products | 7.3 | 7.3 | 7.3 | 7.3 |
| 1.2 | 1.2 | (3.5) | (3.5) | |
| Inflation sensitive | ||||
| Commodities | (0.5) | (0.5) | 19.5 | 19.5 |
| Natural resources | 0.2 | 3.3 | 29.6 | 28.2 |
| Inflation hedge | (3.0) | (3.0) | 9.2 | 9.2 |
| (1.0) | (0.2) | 19.2 | 18.7 | |
| Real assets | ||||
| Real estate | (5.9) | 2.0 | (3.5) | 6.7 |
| Infrastructure | (2.8) | 7.6 | 18.7 | 15.1 |
| (4.1) | 5.3 | 8.3 | 11.1 | |
| Credit | 9.1 | 9.6 | 3.6 | 0.0 |
| Total-fund net return | 1.9 | 8.7 | 4.0 | 2.3 |
3The total-fund net return is calculated after deducting transaction costs, management fees and investment administrative costs. Asset-class returns are calculated before deducting investment administrative costs.
4Effective January 1, 2023, the Innovation asset class is included in Equity - Venture growth and is benchmarked to an active benchmark. Previously, Venture growth was benchmarked to its actual return during an initial incubation period. Prior period returns for Equity and Credit have not been restated.
Pension funding sources since 1990
As at December 31, 2023
*The additional 0.9% includes original plan deficit funding and contributions related to conditional inflation protection.
As at December 31, 2023
Eleven Year Financial review
| (Canadian $ Billions) | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| CHANGE IN NET ASSETS | |||||||||||
| Income | |||||||||||
| Net Investment income | 5.53 | 10.36 | 24.71 | 18.01 | 20.19 | 5.23 | 16.98 | 7.00 | 19.67 | 16.26 | 13.72 |
| Contributions | |||||||||||
| Members/transfers | 1.71 | 1.70 | 1.69 | 1.63 | 1.62 | 1.60 | 1.71 | 1.70 | 1.67 | 1.63 | 1.55 |
| Province of Ontario | 1.64 | 1.67 | 1.66 | 1.60 | 1.60 | 1.57 | 1.68 | 1.66 | 1.64 | 1.59 | 1.53 |
| Total income | 8.88 | 13.73 | 28.06 | 21.24 | 23.41 | 8.40 | 20.37 | 10.36 | 22.98 | 19.48 | 16.80 |
| Expenditures | |||||||||||
| Benefits | 7.69 | 7.21 | 6.91 | 6.70 | 6.42 | 6.14 | 5.93 | 5.72 | 5.54 | 5.31 | 5.15 |
| Investment expenses | 0.83 | 0.79 | 0.73 | 0.63 | 0.61 | 0.56 | 0.47 | 0.45 | 0.43 | 0.41 | 0.36 |
| Member services expenses | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.07 | 0.06 | 0.06 | 0.05 | 0.05 | 0.05 |
| Total expenditures | 8.60 | 8.08 | 7.72 | 7.41 | 7.11 | 6.77 | 6.46 | 6.23 | 6.02 | 5.77 | 5.56 |
| Increase/(decrease) in net assets | 0.28 | 5.56 | 20.34 | 13.83 | 16.30 | 1.63 | 13.91 | 4.13 | 16.96 | 13.71 | 11.24 |
| NET ASSETS | |||||||||||
| Investments | |||||||||||
| Equity | |||||||||||
| Publicly traded | 25.36 | 21.90 | 27.22 | 42.47 | 35.84 | 31.60 | 35.13 | 38.97 | 49.85 | 48.27 | 47.62 |
| Non-publicly traded | 58.55 | 58.32 | 55.06 | 41.77 | 39.34 | 33.35 | 31.94 | 26.98 | 27.69 | 20.58 | 14.27 |
| Venture growth5 | 7.46 | - | - | - | - | - | - | - | - | - | - |
| Fixed Income | |||||||||||
| Bonds | 85.94 | 76.17 | 33.32 | 17.15 | 72.67 | 58.25 | 41.41 | 43.53 | 37.98 | 35.19 | 30.53 |
| Real-rate products | 9.87 | 9.82 | 11.87 | 17.40 | 20.44 | 19.47 | 19.96 | 31.72 | 31.13 | 30.36 | 26.37 |
| Inflation Sensitive | |||||||||||
| Commodities | 22.22 | 25.05 | 26.46 | 17.65 | 17.59 | 10.61 | 11.08 | 4.18 | 4.00 | 9.03 | 8.21 |
| Natural resources | 11.40 | 10.11 | 9.40 | 7.44 | 8.20 | 8.12 | 6.55 | 6.28 | 6.25 | 2.87 | 2.62 |
| Inflation hedge | 11.78 | 12.73 | 12.10 | 11.53 | 10.28 | 8.71 | 8.92 | - | - | - | - |
| Real assets | |||||||||||
| Real estate | 28.24 | 28.07 | 26.26 | 25.20 | 28.69 | 27.45 | 25.51 | 26.47 | 24.86 | 22.09 | 19.24 |
| Infrastructure | 39.25 | 39.75 | 26.08 | 17.79 | 16.98 | 17.80 | 18.74 | 17.83 | 15.66 | 12.66 | 11.68 |
| Real-rate products | - | - | - | 1.92 | - | 4.33 | 1.45 | - | - | - | - |
| Innovation5 | - | 7.44 | 7.09 | 3.47 | - | - | - | - | - | - | - |
| Credit5 | 38.56 | 35.11 | 24.30 | 17.98 | 16.31 | 15.23 | 13.58 | - | - | - | - |
| Absolute return strategies | 19.49 | 18.69 | 14.94 | 13.60 | 16.56 | 12.55 | 10.73 | 13.28 | 17.76 | 15.84 | 12.20 |
| Funding and other | (``114.20) | (99.02) | (35.14) | (17.44) | (78.85) | (59.89) | (39.65) | (37.16) | (46.93) | (44.50) | (33.84) |
| Net Investments | 243.92 | 244.14 | 238.96 | 217.93 | 204.05 | 187.58 | 185.35 | 172.08 | 168.25 | 152.39 | 138.90 |
| Receivable from Province of Ontario | 3.29 | 3.30 | 3.23 | 3.18 | 3.14 | 3.22 | 3.31 | 3.27 | 3.21 | 3.10 | 2.97 |
| Other Assets | 1.58 | 1.75 | 0.61 | 1.06 | 0.98 | 0.79 | 1.59 | 1.21 | 0.44 | 0.22 | 0.14 |
| Other Liabilities | (1.28) | (1.95) | (1.22) | (0.93) | (0.76) | (0.48) | (0.77) | (0.99) | (0.46) | (1.23) | (1.25) |
| Net Assets | 247.51 | 247.24 | 241.58 | 221.24 | 207.41 | 191.11 | 189.48 | 175.57 | 171.44 | 154.48 | 140.76 |
| Accrued pension benefits | 211.39 | 206.20 | 257.48 | 257.33 | 224.67 | 192.28 | 204.32 | 189.40 | 173.27 | 172.73 | 148.57 |
| Surplus/Deficit | 36.12 | 41.04 | (15.90) | (36.09) | (17.26) | (1.17) | (14.84) | (13.83) | (1.83) | (18.25) | (7.81) |
| PERFORMANCE (%) | |||||||||||
| Total fund net return | 1.9 | 4.0 | 11.1 | 8.6 | 10.4 | 2.5 | 9.7 | 4.0 | 12.7 | 11.5 | 10.6 |
| Benchmark | 8.7 | 2.3 | 8.8 | 10.7 | 12.2 | 0.7 | 8.2 | 3.5 | 10.1 | 10.1 | 9.3 |
| Assumptions used for Financial Statement Valuation | |||||||||||
| As at December 31st (%) | |||||||||||
| Nominal discount rate | 4.00 | 4.30 | 2.50 | 2.00 | 2.50 | 3.20 | 2.95 | 3.25 | 3.25 | 3.35 | 4.20 |
| Salary escalation rate | 2.60 | 3.10 | 2.85 | 2.50 | 2.35 | 2.40 | 2.70 | 2.80 | 2.50 | 2.70 | 3.00 |
| Long-term Inflation rate | 1.60 | 2.10 | 1.85 | 1.50 | 1.35 | 1.40 | 1.70 | 1.80 | 1.50 | 1.70 | 2.00 |
| Real discount | 2.35 | 2.15 | 0.65 | 0.50 | 1.15 | 1.80 | 1.25 | 1.40 | 1.70 | 1.65 | 2.20 |
5Effective January 1, 2023 investments formerly included in the Innovation asset class are now included in Equity - Venture growth and Credit asset classes. Priod period amounts for Equity and Credit have not been restated.