In 2010, the Plan achieved an overall investment return of 13.9%, outperforming our 10.9% composite benchmark return and more than doubling the Plan’s 6.75% funding target return for the year. Total investment earnings were $1,530 million in 2010, up from $1,348 million in 2009, when the Plan returned 13.6%. The added value generated by active management of the Fund was 2.9% or $363 million dollars in 2010.

Over 16 years of operation, OPTrust has achieved an average annual return of 8.7% since 1995, outperforming both its 7.6% average return for our composite benchmark and the Plan’s 7.3% funding target for the same period. The funding target is the rate of return the Plan is expected to achieve over the long term to pay for members’ and retirees’ pensions.    

OPTrust’s 13.9% return for 2010 topped our composite benchmark return by 3%. Strong returns from the Plan’s global equity portfolio, real estate and infrastructure investments accounted for the majority of the Fund’s outperformance. Full-year results are not available for the energy commodities portfolio, which was launched during the year. * includes real return bonds

OPTrust’s total fund return for 2010 reflects our policy of hedging 50% of the Plan’s foreign currency exposure for developed market investments at the total fund level. All returns are calculated gross of investment management fees and operating costs.

More information on OPTrust’s investment strategy and performance are available in our 2010 Annual Report.