Ontario Teachers' Pension Plan posts 10.9 percent return in 2013

Tue Apr 1, 2014 10:01am EDT
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* Net assets rise to record C$140.8 billion

* Pension plan erases funding shortfall, notches C$5.1 bln surplus

April 1 (Reuters) - The Ontario Teachers' Pension Plan, one of Canada's biggest investors, on Tuesday reported a 10.9 percent rate of return on its investments in 2013, bringing net assets to a record high of C$140.8 billion ($127.6 billion).

The fifth straight year of double-digit returns on the investment portfolio erased Teachers' funding shortfall. The preliminary results showed a C$5.1 billion surplus, the plan's first in 10 years.

"Our rate of return since inception (in 1990) is 10.2 percent," Teachers' Chief Executive Officer Ron Mock said in a statement.

Teachers' and peers like the Canada Pension Plan Investment Board and Caisse de dépôt et placement du Québec have been among the world's most active dealmakers in recent years, with major bets on real estate, natural resources and infrastructure.

"We face an increasingly competitive investment landscape," Mock said.

Teachers', which once focused mainly on Canadian stocks and bonds, has shifted strategy in recent years to put more money to work outside the country, seeking projects and assets that promise long-term income and gains.

The pension plan notched strong returns in equities, real estate and infrastructure. But negative returns in fixed income weighed on the overall results, Teachers' said in a statement accompanying its annual report.   Continued...