We are a long-term investor and our longer-term results remain strong. Our net 10-year annualized return is 7.8 per cent, while the net annualized return since inception is 8.0%. This has exceeded what is required to fund the Plan and puts us in a good position to weather short-term volatility.

Total Fund Investment Performance

The macroeconomic environment in 2022 posed a unique challenge for investors, characterized by persistently high inflation, low growth and aggressive monetary policy tightening globally. With interest rates rising and growth uncertainty elevated, returns for fixed income, public equities and credit have all been sharply negative.

2022 was among the most challenging regimes for cross-asset investors as balanced portfolios recorded one of the worst performing years since the Great Depression.

After earning a Total Fund net return of 15.3 per cent in 2021, the net return in 2022 was -2.2 per cent, reflecting sharp declines in the value of public equity and fixed income securities.

We have a large exposure to fixed income because bonds play a role in keeping our funded status stable through market cycles. While bond exposures delivered negative returns in 2022, we continue to deliver on our plan sustainability objective and have retained our fully funded status for the 14th consecutive year.

To learn more, read our Funded Status Report.