Ontario Teachers’ net assets totaled $ 227.7 billion in mid-2021

23 Aug 2021

Highlights of the first semester:

  • Six-month and one-year net returns of the whole fund of 3.8% and 13.2%, respectively

  • $ 8.6 billion in net investment income generated for the Fund

  • Since inception, total net fund return of 9.6%

  • Plan sponsors have filed fully funded valuation with regulators

  • Successfully acquired high quality assets on four continents

TORONTO – The Ontario Teachers’ Pension Plan Board today announced that its net assets totaled $ 227.7 billion as at June 30, 2021. The total net return of the fund was 3.8% for the six-month period, while the total 12-month fund net return was 13.2%. Teachers’ net investment income of $ 8.6 billion in the first half of 2021.

As of January 1, 2021, the plan was fully funded with a surplus of $ 8.5 billion, underscoring its financial health and long-term sustainability. Plan sponsors, the Ontario Teachers’ Federation and the Government of Ontario, have filed the January 1, 2021 assessment with regulators.

“These results demonstrate the continued execution of our investment strategy and exceed the rate of return required to keep the plan fully funded over the long term,” said Jo Taylor, President and CEO. “While the middle of the year is an important checkpoint, long-term results are the best indicator to assess the performance of our investments. We are delighted to maintain strong returns over 10 years and since inception. “

As of June 30, 2021, Ontario Teachers’ had an annualized net total fund return of 9.6% since its inception in 1990. The five-year and ten-year annualized net returns, also as of June 30, 2021, were 7.9% and by 9.3%, respectively.

Return on investments

Period (all as of June 30, 2021)

Six months

One year

Five years

10 years

Since inception

Total net return of the fund

3.8%

13.2%

7.9%

9.3%

9.6%

“Our diversified portfolio has resisted and generated positive returns despite the lingering uncertainty of the pandemic. We delivered strong performance in our private equity, innovation and inflation-sensitive asset classes. The gains were partially offset by losses on fixed income securities and currencies, ”added Ziad Hindo, chief investment officer. “As part of our continued efforts to build a more balanced and diversified portfolio, we have allocated additional capital to real assets such as infrastructure and real estate, inflation sensitive assets and our innovation platform to teachers.

Teachers’ has investments denominated in more than two dozen currencies in more than 50 countries, but reports its assets and liabilities in Canadian dollars. In the first half of 2021, the currency had a negative impact of 1.5% on the fund total, resulting in a loss of $ 3.2 billion. This development is explained by the strengthening of the Canadian dollar against most world currencies, in particular the US dollar.

Detailed asset mix

As of June 30, 2021 As of December 31, 2020

Net efficient
Investments
at fair value
(millions of $)
Active
To mix together
%
Net efficient
Investments
at fair value
(millions of $)
Active
To mix together
%
Equity

Listed on the stock exchange

38 165 17

42,471

19

Not publicly
negotiated

45 227 20

41,773

19

83,392 37

84,244

38

Fixed income

Obligations

33 653 15

17,148

8

Real rate products

11,292 5

17 399

8

44 945 20

34 547

16

Sensitive to inflation

Merchandise

26,589 12

17 649

8

Natural resources

8,117 4

7,439

4

Inflation hedge

11 484 5

11 536

5

46 190 21

36 624

17

Real goods

Immovable

26,171 12

25,200

12

Infrastructure

20,858 9

17 786

8

Real rate products

948

1919

1

47 977 21

44,905

21

Innovation 5 658 3

3,474

2

Credit 18,705 8

17 977

8

Absolute
return strategies
13,896 6

13,596

6

Cover 331

828

Money Market1 (35,283) (16)

(18,269)

(8)

Net investments2 $ 225,811 100%

$ 217,926

100%

1 Includes term debt.
2 Net investments, which include investments less investment-related liabilities according to the condensed interim consolidated statement of financial position as at June 30, 2021, are $ 1,905 million lower than net assets which include all other assets and passive.

“Our goal remains to foster long-term, sustainable growth while providing excellent service to our members. Thanks to our global team, we have completed a number of high quality private transactions so far in 2021, which positions us well as we work towards our goal of reaching $ 300 billion in net assets from here 2030, ”Taylor concluded.

Here are the main transactions of the first semester:

  • Led a CDN $ 375 million Series D fundraiser for ApplyBoard, an online platform based in Waterloo, Ont. That provides students worldwide with access to top-quality education;

  • Acquisition of a 40% stake in Caruna, Finland’s largest electricity distribution company;

  • • Led a RMB 1 billion fundraiser for CD Finance, a leading rural services institution that supports entrepreneurship and poverty reduction among China’s rural population;

  • Along with IFM Investors, jointly acquired a 100% stake in Canadian neighborhood energy operations owned by Enwave Energy Corporation, a low-carbon energy supplier, for C $ 2.8 billion on a enterprise value;

  • • Acquisition of a 100% stake in Evoltz Participações SA, a leading electricity transmission platform in Brazil. The company has seven electricity transmission lines totaling more than 3,500 km in 10 Brazilian states;

  • • Through our real estate subsidiary Cadillac Fairview, we committed US $ 400 million to the Hines Asia Property Partners fund, a multi-sector, open and diversified vehicle targeting leading markets in Japan, Australia, South Korea. South, Singapore and China (including Hong Kong).

  • Acquisition of a majority stake in Logoplaste, one of the world’s leading designers and manufacturers of innovative and sustainable plastic packaging solutions for major consumer brands;

  • Made a significant strategic investment in Mitratech, a leading provider of legal and compliance software.

In addition to the many direct investments related to climate change and ESG factors mentioned above, since June 30, Ontario Teachers’ has become a benchmark investor in two funds related to climate change by committing significant capital in the Brookfield Global Transition. Fund and the TPG Rise Climate Fund. As part of Ontario Teachers’ commitment to achieve zero net greenhouse gas emissions by 2050, it is increasing investment in climate-related solutions that will help the global transition to a low-emission economy. carbon.

About Ontario Teachers’
The Ontario Teachers’ Pension Plan Board is the administrator of the largest single profession pension plan in Canada, with net assets of C $ 227.7 billion (all figures are as of June 30, 2021, unless otherwise indicated). It holds a diversified global portfolio of assets, approximately 80% of which is managed internally, and has achieved a total annual net fund return of 9.6% since the inception of the plan in 1990. Ontario Teachers’ is an organization independent headquartered in Toronto. . Its Asia-Pacific region offices are located in Hong Kong and Singapore, and its Europe, Middle East and Africa region office is in London. The Defined Benefit Plan, which is fully funded as of January 1, 2021, invests and administers the pensions of 331,000 active and retired teachers in the province of Ontario. For more information, visit otpp.com and follow us on Twitter @OtppInfo.

Contacts:

Dan Madge
Ontario Teachers’ Pension Plan
Telephone: +1 416-419-1437
Email: [email protected]

Olivier Mann
Kekst CNC
Telephone: +44 203 7551 607
Email: [email protected]

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