Fund manager saw 2.5% return in 2018 amid tough conditions
The importance of a diversified portfolio has been highlighted by Ontario Teachers’ Pension Plan.
Its assets increased by $1.6 billion in 2018 taking its net assets to $191.1 billion as of December 31, 2018. A total-fund net return of 2.5% was achieved in some turbulent conditions for investors.
"In 2018 we were able to generate positive returns even as we navigated some of the most volatile markets in years, thanks to the work we have done to build a diversified investment portfolio that can perform across market scenarios," said Ron Mock, President and Chief Executive Officer. "Concurrently, we are pleased to report that as of January 1, 2019, we were fully funded for a sixth consecutive year, with 100% inflation protection being provided on all pensions."
The plan’s volatility was low compared to what it would have seen with a more traditional asset allocation and shows the value of active management in outperforming its benchmark by 1.8%.
"Times like these show how continuing to rebalance the portfolio for stability is paying off," said Ziad Hindo, Chief Investment Officer. "In 2018, our private assets carried the day. Despite a more difficult environment, we were able to conclude a number of significant, complex transactions during the year."
Image source: Ontario Teachers’ Pension Plan
