The Ontario Teachers’ Pension Plan posted an 11.8 percent return on its investments for 2014, according to its recently released annual report. The bumper returns also pushed assets to a new high of $154.5 billion, up from $140.8 billion at the end of 2013.
Investment earnings for the year were $16.3 billion, up from $13.7 billion in 2013.
The pension will go into 2015 with a large cash position following the strong returns of 2014. The plan had a preliminary funding surplus of $6.8 billion to start 2015, the second surplus in as many years.
The pension’s focus on direct private investments in 2014 has also been a boon. Investments by Teachers' Private Capital (TPC) rose to $21.0 billion at year-end from $14.8 billion a year earlier. The private capital portfolio return for 2014 was 22 percent, above the 16.3 percent benchmark.
The pension is said to be considering opening a new office in South Africa later this year as well.
“These strong results were achieved in a turbulent investment environment,” said Ron Mock, president and chief executive officer. “With continuing low interest rates, intense competition pushing up asset prices, the slide in oil prices and resulting stock-market volatility, 2014 was not an easy year for investment success.”