OPB earns 6.14 pct return in 2015, increases assets to $23 bln

Ontario Pension Board (OPB), which manages Ontario’s Public Service Pension Plan, generated an investment return of 6.14 percent at the end of 2015. The Toronto-based pension fund manager’s private-market investments, consisting of real estate, private equity and infrastructure, returned 11.1 percent. As a result of overall performance, OPB’s net assets rose to $23 billion at year’s end. OPB said it continued to shift assets from public to private markets in 2015, a strategy that included increasing both infrastructure and private equity portfolios by 50 per cent.

PRESS RELEASE

Ontario Pension Board earns 6.14 per cent investment return in 2015; funded status remains steady at 98 per cent

TORONTO, April 14, 2016 /CNW/ – Ontario Pension Board (OPB), the administrator of Ontario’s Public Service Pension Plan (PSPP), ended 2015 with an annual investment return of 6.14 per cent. Net investment income during the year amounted to $1.22 billion and net assets grew to $23 billion at year end.

“I am pleased with our investment performance in 2015, which demonstrated our ability to successfully manage through challenging markets and helped us maintain a strong 98 per cent funded status,” said Mark Fuller, President & CEO of OPB. “While the investment outlook is challenging, I am confident that our responsible approach to pension administration and investment management, paired with our commitment to driving innovation, will allow us to continue to protect the long-term sustainability of the Plan (PSPP).”

OPB continued to shift assets from public to private markets in 2015, increasing its gross exposure by approximately $1.9 billion. This included increasing both its infrastructure and private equity portfolios by 50 per cent, and real estate portfolio by 30 per cent. Key additions included a 30 per cent co-ownership interest in Toronto’s iconic TD Centre, more Manhattan real estate and core infrastructure investments in the UK, Spain, and Australia.

Public market investments, which include public market equity, fixed income and cash, returned 5.0 per cent for the year, while overall private markets investments consisting of real estate, private equity and infrastructure, returned 11.1 per cent.

OPB’s full 2015 Annual Report, including Management’s Discussion & Analysis and Audited Financial Statements will be posted on www.opb.ca after the President of the Treasury Board tables it with the Legislative Assembly.

Ontario Pension Board (OPB) administers Ontario’s Public Service Pension Plan (PSPP), a defined benefit pension plan serving approximately 42,000 active members and their employers, as well as more than 42,000 retired and former members. With over $23 billion in net assets under management, the PSPP is one of Canada’s largest pension plans. It’s also one of Canada’s oldest pension plans, successfully delivering the pension promise since the early 1920s. To learn more about OPB, visit www.opb.ca.

For further information: Media contact: Ileana Brito, Manager, Stakeholder Relations, 416-601-4082, ileana.brito@opb.ca, www.opb.ca

Photo courtesy of Canada Visa