Investment Performance

Member-driven investing

We are a pension management organization. Our members depend on us to provide secure, predictable income in retirement. As such, how we think about investing and how we manage our plan needs to fully align with our members’ interests.

We strive to keep the Plan in balance at all times to protect its funded status and improve plan certainty. There are three key components: contributions and investment returns on one side, and benefits on the other.

Assets and Liabilities

To achieve our primary goal of plan certainty, we need to strike the appropriate balance between two objectives:

  • Sustainability: Generating sufficient returns to keep the Plan fully funded; and,
  • Stability: Keeping contributions and benefits as stable as possible over time.

However, there are two primary challenges facing these objectives:

  • Demographics: Aging membership limits our ability to take on investment risk.
  • Low expected returns: Low interest rates and high valuations make earning investment returns more challenging.

In this challenging investment environment, we are committed to protecting our funded status and avoiding undue risk. This is why we are continuing to execute on our member-driven investing (MDI) strategy.

Fully funded despite uncertain markets

We continued to focus on our most important metric of performance – our funded status. Despite the overall challenging market environment in 2016, OPTrust achieved a 6% net investment return and the Plan remained fully funded.

2016 Funded Status Report pages