Ontario Teachers’ posts $8.6-billion mid-year gain

The Ontario Teachers’ Pension Plan Board earned $8.6 billion in net investment income during the first half of 2021.

The total-fund net return was 3.8% for the six-month period that ended June 30, while the 12-month net return was 13.2%, the pension fund manager said in a release on Monday.

Net assets totalled $227.7 billion at the end of June.

The pension plan’s annualized total-fund net return since inception in 1990 is 9.6%. Over four and 10 years, annualized total-fund returns were 7.9% and 9.3%, respectively.

“While mid-year is an important checkpoint, long-term results are the best gauge to assess our investment performance. We are pleased to be sustaining strong 10-year and since inception returns,” said Jo Taylor, president and chief executive officer with Ontario Teachers’.

The plan was fully funded with an $8.5-billion surplus at the beginning of the year, the release said.

Gains were partially offset by losses in fixed income and currency. Ontario Teachers’ holds investments denominated in more than two dozen currencies across over 50 countries. In the first half of 2021, currency had a negative 1.5% impact on the total fund, resulting in a loss of $3.2 billion. The fund reports its assets and liabilities in Canadian dollars, which was strong relative to most global currencies.

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