Ontario Teachers' Pension Plan says 1.9% return shows portfolio strategy is working

financialpost.com:

The Ontario Teachers’ Pension Plan Board posted a six-month net return of 1.9 per cent, contributing to a 12-month total-fund net return of 4.8 per cent and net assets of $249.8 billion, as of June 30, 2023.

Jo Taylor, chief executive of Canada’s largest single-profession pension fund, said he expects markets will continue to be volatile, but Teachers’ investment portfolio is designed to help produce stable returns over the long term.

“Our half-year results demonstrate that our portfolio construction is working as planned,” he said. “Our balanced portfolio positions us well to navigate markets that we anticipate will continue to be volatile in the coming years.”

Ziad Hindo, the pension plan’s chief investment officer, said the fund generated positive returns across several asset classes in the first half, including public and private equities, infrastructure and credit.

“Looking ahead, we will remain disciplined as we pursue attractive investment opportunities while building value within our high-quality portfolio of companies,” he said in a news release.

The fully funded pension plan’s 10-year annualized net return is 8.6 per cent, with an annualized net return of 9.4 per cent return since inception.

As of Jan. 1, 2023, the plan was fully funded with a $17.5-billion funding surplus.