Rates of Return
OPB’s one-year, five-year, 10-year and since-inception compounded annual rates of net investment return for the period ending December 31, 2021 are as follows:
Successfully managed inflation and market volatility to earn a solid return in 2021
9.4%
net of all expenses
Net Assets
$33.7 B
at Dec. 31, 2021, up from $31.0 billion the previous year
| 1-year | 5-year | 10-year | Since 1990 | |
|---|---|---|---|---|
| Total Fund return | 9.4% | 7.6% | 8.2% | 8.1% |
| Benchmark return | 7.8% | 7.7% | 7.8% | 7.9% |
|
Note: Total Fund returns are net of all Plan administration and investment management expenses. |
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On a 10-year basis, our compounded annualized return of 8.2% has exceeded the portfolio benchmark return by 0.4%.
Investment Asset Mix
Asset Categories1
Cash
1.9%
Fixed Income2
29.2%
Public Equities3
31.8%
Real Estate
15.1%
Infrastructure
8.4%
Private Equity
10.4%
Public Market Alternatives4
3.2%
1 The asset categories in this asset mix table are adjusted to reflect the market exposures after allocating derivatives positions to the asset classes to which they relate, offset by an adjustment to cash and equivalents, included in the fixed income category.
2 Fixed income includes government nominal and inflation-linked bonds, publicly traded corporate bonds, and privately held debt.
3 Public equities include Canadian equity, global equity, emerging markets equity and public equity pooled funds.
4 Public market alternatives include a broad range of assets, including pooled funds, equities, fixed income, credit and currencies, as well as derivatives, seeking to offer low correlation to public equities.
Investment Highlights
IMCO, in accordance with its Proxy Voting Guidelines and Responsible Investing Policy, voted on OPB’s behalf at
1,956
public company meetings
IMCO supported
323
shareholder proposals,
including climate risk disclosure, diversity, human rights risk assessment and board effectiveness
OPB joined the
30% Club Canada
and joined the
Responsible Investment Association (RIA),
signing on to its Investor Statement on Diversity & Inclusion (August), and were founding signatories to its Investor Statement on Climate Change (October)
OPB made its
first submission to the PRI,
which we rejoined in 2020
Acquisition Highlights
In October 2021, IMCO completed its 100% acquisition of Pulse Clean Energy (formerly Green Frog Power Ltd), a leading developer, owner and operator of flexible power generation projects in the U.K.
IMCO closed a US$325 million (approximately C$400 million) commitment to the Breakthrough Life Science Property Fund, which is building a portfolio of life science assets in leading U.S.-based technology centres
Progressed in establishing relationships and investments with select external fund managers focused on private market asset classes, including private equity, infrastructure and private credit
Our goal is to ensure the Plan remains sustainable and that it has the funding necessary to meet the pension promise. Investment excellence is one of the key levers for achieving Plan sustainability. To achieve the returns the Plan needs, we must effectively balance risk and return – including careful consideration of ESG impacts – so we make the right long-term decisions and don’t just react to transitory market conditions.”
Chris Kautzky, Chief Investment Officer
OPB and IMCO are both strongly committed to monitoring and addressing important ESG matters. From an investment perspective, a growing body of evidence indicates that organizations with a strong ESG commitment outperform across a range of important metrics, including returns to shareholders.
