Highlights for mid-2024:
- The net worth is $255.8 billion.
- Total net return of the fund for six and twelve months of 4.2%.
- Strong long-term returns of 7.3% over ten years and 9.3% since inception.
- Fully funded for the 11th.th year in a row and plan sponsors have announced that they will submit an assessment to regulators.
- In order to optimally implement the plan for the future, several senior managers have been appointed.
TORONTO (13 August 2024) — Ontario Teachers’ Pension Plan Board (Ontario Teachers’) today announced a six-month total fund net return of 4.2%, or net investment income of $10.8 billion. The one-year total fund net return was also 4.2%. Net assets are $255.8 billion, an increase of $8.3 billion from year-end (all figures are as of June 30, 2024, and are in Canadian dollars unless otherwise noted).
“Our results for the first half of 2024 reflect the ability of our investment teams to generate positive returns in diverse market conditions and maintain a well-funded status for our members,” said Jo Taylor, President and Chief Executive Officer.
Because the plan’s liabilities extend decades into the future, results over longer periods are particularly important. Ontario Teachers’ has achieved an annualized net return of 9.3 percent for the entire fund since its inception in 1990. The five- and ten-year annualized net returns were 6.7 percent and 7.3 percent, respectively.
The following table summarizes Ontario Teachers’ portfolio composition by asset class for the current period and the previous year-end.
Detailed asset mix
| As of June 30, 2024 | As of December 31, 2023 | |||
|---|---|---|---|---|
| Asset class | Billions of dollars | % | Billions of dollars | % |
| Equity capital | ||||
| Public equity | 37.2 | 15% | 25.4 | 10% |
| Private equity | 58.5 | 23% | 58.5 | 24% |
| Risk growth | 8.1 | 3% | 7.5 | 3% |
| 103.8 | 41% | 91.4 | 37% | |
| Fixed-income securities | ||||
| Bonds | 85.2 | 33% | 85.9 | 35% |
| Real interest rate products | 9.7 | 4% | 9.9 | 4% |
| 94.9 | 37% | 95.8 | 39% | |
| Sensitive to inflation | ||||
| Raw materials | 29.1 | 11% | 22.2 | 9% |
| Natural resources | 12.2 | 5% | 11.4 | 5% |
| Inflation protection | 12.2 | 5% | 11.8 | 5% |
| 53.5 | 21% | 45.4 | 19% | |
| Tangible assets | ||||
| Property | 30.0 | 12% | 28.2 | 12% |
| Infrastructure | 41.7 | 16% | 39.2 | 16% |
| 71.7 | 28% | 67.4 | 28% | |
| credit | 34.8 | 14% | 38.6 | 16% |
| Absolute Return Strategies | 20.5 | 8% | 19.5 | 8% |
| Financing and other1 | (125.4) | (49%) | (114.2) | (47%) |
| Net investments2 | 253.8 | 100% | 243.9 | 100% |
(1) Including investment financing (forward debt, bond repurchase agreements, implicit financing from derivatives, unsecured financing and liquidity reserves) and overlay strategies that manage currency risk for the overall fund.
(2) Includes investments less investment-related liabilities. Total net assets of $255.8 billion as of June 30, 2024 (as of December 31, 2023: $247.5 billion) include net investments and other net assets and liabilities of $2.0 billion as of June 30, 2024 (as of December 31, 2023: $3.6 billion).
Funding status
As of January 1, 2024, the plan was fully funded with a preliminary funding surplus of $19.1 billion, underscoring its long-term financial health and sustainability. On July 23, 2024, the plan’s sponsors, the Ontario Teachers’ Federation and the Government of Ontario, publicly announced that the funding assessment would be submitted to regulators. The co-sponsors elected to classify the surplus as an emergency reserve.
Company News
- Announced resignation of Tracy Abel, Chief Operating Officer, valid from the end of 2024.
- Appointment of new leaders, including:
- Mabel Wongas Chief Financial Officer, was announced today. Ms. Wong has served as interim Chief Financial Officer since April following Tim Deacon’s departure from the company.
- Bernard Grzinic appointed to Managing Director, Capital Marketswhere he will lead Ontario Teachers’ active risk appetite in the credit and absolute return asset classes.
- Steve Saldanha called Managing Director, Total Fund Managementresponsible for designing the overall investment mix, managing trading activities and integrating portfolio construction with treasury and financing capabilities.
- Robert Sturgeon promoted to Chief Executive Officer, Global Investment Strategytasked with assessing the global business environment, developing strategic responses to emerging global issues, and fostering strategic relationships for Ontario Teachers’.
Transaction highlights
Ontario Teachers’ manages approximately 80% of assets internally, focusing on deploying capital in active strategies. In the first half of 2024, the fund continued to diversify its investments in Canada and globally.
Investment highlights during this period include:
Shares
- Fairstone Bank of Canada, a portfolio company of Ontario Teachers’, And Home Trust Company will merge its businesses to create Canada’s leading alternative lender. The company has a nationwide presence in Canada, serving more than two million customers with over 250 branches coast to coast.
- Acquisition of a significant minority stake in Kogta Financial (India) Limiteda fast-growing, retail-focused non-banking finance company specializing in collateralized vehicle and SME (micro, small and medium enterprise) financing in India.
- Successful completion of the sale of Shearers Fooda leading contract manufacturer and private label supplier to the snack industry in North America, and the partial sale of SeaCube Container Leasing Ltd.one of the world’s largest lessors of intermodal containers.
Infrastructure and natural resources
- Completion of a third investment in National Highways Infra Trust (NHIT)NHIT is an Infrastructure Investment Fund (InvIT) promoted by the National Highways Authority of India, the nodal agency of the Government of India for the development of national highways.
- Together with the Mahindra Group, an InvIT called Sustainable Energy Infra Trust (SEIT). SEIT is India’s largest renewable energy InvIT and is listed on the National Stock Exchange of India.
Property
- In addition to his Boreal IM Joint venture, completed an investment in a logistics property in Germany with an area of 37,000 m² and signed four logistics investments in Germany and France with a total area of almost 200,000 m². In addition, the construction of a logistics property in Spain with an area of 54,000 m² was completed and the construction of a logistics property in Germany with an area of 23,000 m² was started.
Growth of Teachers’ Venture
- Co-leader of a fundraising round of SmartHRa leading cloud-native human resource management platform in Japan.
- Participation in an investment in DeepLa leading language AI company whose platform delivers industry-leading AI-powered translation and writing solutions to enterprises worldwide.
- Invested in PerfiosIndia’s leading B2B SaaS company serving the financial services sector across 15 countries and supporting 900 financial institutions.
- Led the fundraising round of Instagram, a leading provider of high-performance portable battery systems.
About Ontario Teachers’
Ontario Teachers’ Pension Plan Board (Ontario Teachers’) is a global investor with net assets of $255.8 billion as of June 30, 2024. We invest in a broad range of assets, including public and private equity, fixed income, credit, commodities, natural resources, infrastructure, real estate and venture capital, in over 50 countries to provide retirement income to 340,000 working members and retirees.
Our more than 450 investment professionals operate in the world’s major financial centers and have deep expertise across a broad range of sectors and industries. We are a fully funded defined benefit pension plan and have delivered a net annual return of 9.3% since the plan’s inception in 1990. At Ontario Teachers’, we don’t just invest to earn a return, we invest to create a better future for the teachers we serve, the companies we support and the world we live in. For more information, visit otpp.com. Also follow us on LinkedIn.
Media contact:
Daniel Madge
Ontario Teachers Pension Plan
Phone: +1 416-419-1437
Email: [email protected]
Forward-looking statements
This press release contains forward-looking information and statements intended to assist the reader in making a better assessment of Ontario Teachers’ future financial and business performance. Forward-looking information and statements include all information and statements regarding Ontario Teachers’ current beliefs, objectives, intentions, plans and expectations with respect to its objectives, future development, strategies and financial results, and all other information or statements that relate to future events or circumstances and do not relate directly and exclusively to historical facts. Forward-looking information and statements often, but not always, use words such as “trend,” “potential,” “opportunity,” “believe,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve” and similar expressions or future or conditional verbs such as “will,” “would,” “should,” “could,” “might” and similar expressions. Because the forward-looking information and statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond Ontario Teachers’ control or subject to change, actual results or events may differ materially. Although Ontario Teachers believes that the estimates and assumptions underlying the forward-looking information and statements are reasonable, such information and statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such information or statements because of the uncertainty inherent therein. Ontario Teachers’ forward-looking information and statements speak only as of the date of this report or the date they are made and should be considered solely as Ontario Teachers’ current plans, estimates and beliefs. Ontario Teachers does not intend or undertake any obligation to publicly update such statements to reflect new information, future events, changed circumstances or for any other reason.
