Investments

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With net assets of over $23 billion, OPTrust invests and manages one of Canada’s largest pension funds. OPTrust is a global investor with a team of experienced investment professionals located in Toronto, London and Sydney.

OPTrust’s investment mandate focuses on achieving the organization’s mission to pay pensions today and preserve pensions for tomorrow. We are a pension management organization. Our members depend on us to provide secure, predictable income in retirement. Our investment strategy is aligned with our members’ interests and seeks to deliver the returns we need to keep the Plan fully funded at the lowest level of risk.

The 2020 investment environment was especially challenging as the COVID-19 pandemic increased market volatility and the level of uncertainty with respect to the investment outlook.

  • The evolution of COVID-19 and related changes in consumer behavior have clouded the outlook for economic growth and relative asset class performance over the long term.
  • Low interest rates and elevated asset valuations make it more challenging to generate returns on a go-forward basis.
  • Unprecedented monetary and fiscal expansion has extended the ranges of outcomes for interest rates, inflation and asset prices.
  • Geopolitical risks remain structurally elevated in both developed and emerging economies.

Despite the challenges brought upon by the COVID-19 pandemic, we were able to maintain business continuity and keep the volatility in fund returns relatively low. We also initiated projects to develop best practice ESG integration in the private market space.  

 

Performance

In 2020, OPTrust achieved a net investment return of 8.9% and the Plan retained its fully funded status despite a decline in the nominal discount rate from 5.10% in 2019 to 5.0% in 2020.

Total Fund Investment Performance graph

 

 

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