Canadian pension funds reveals 13% rate of return for 2012

Michael Glenister
Total assets up to £130bn following bumper year for Ontario Teachers

Ontario Teachers, the $130bn Canadian public pension fund has announced a 13% rate of return on investments for the last calendar year.

In its annual report for 2012, the fund said total assets had increased to $129.5bn as a result, up from $117bn at the same point in 2011.

Investment earnings for the period were $14.7bn. The fund made $11.7bn on its investments in 2011.

"Returns earned above our benchmark directly support the goal of pension security and demonstrate the value of our approach to active investing," said Jim Leech, President and Chief Executive Officer.

"The investment team successfully navigated significant risks and turmoil in the global economy again in 2012 to earn an excellent rate of return.  Our 10-year annualized rate of return is 9.6%," he said. 

Ontario Teachers' absolute and value-add returns were rated number one among its peers globally for the year ended 2011, according to CEM Benchmarking, which measures investor returns in comparison to costs and fees paid.

The retirement plan’s Quality Service Index, which measures members' satisfaction based on survey responses, also increased in 2012, to 9.1 out of 10.

"This was an outstanding achievement during a challenging year characterized by a 26% increase in retirements, the introduction of reduced inflation protection for post-2009 service, and the implementation of numerous plan and regulatory changes," said Leech

Tags: Ontario Teachers