The University Pension Plan generated a net return of 10.2 per cent in 2023, up from a 9.1 per cent loss in 2022, according to its latest annual report.
As of Dec. 31, 2023, the investment organization’s net assets increased to $11.7 billion, up from $10.8 billion in 2022. It also reported a funded status of 102 per cent, with a $249.3 million surplus on a smoothed asset basis.
Read: University Pension Plan’s assets declined 9.1% in 2022, led by public equities
The UPP’s portfolio is split with $5.6 billion in active strategies, while $6.1 billion is allocated to passive strategies. It credited its 2023 investment returns to a strong performance by public equities (19.5 per cent), absolute return (8.8 per cent) and fixed income (7.2 per cent). While infrastructure (6.7 per cent) and private debt (6.1 per cent) also helped boost the total return for the investment organization, real estate (negative 4.6 per cent) and private equity (negative 2.1 per cent) saw losses in 2023.
In its report, the UPP said it has reduced its portfolio carbon footprint by 17 per cent against a 2021 baseline, which officially exceeds its 16.5 per cent cut target by 2050. It also committed to investing at least $1.2 billion in climate solutions by 2030.
In a press release, Barbara Zvan, the UPP’s president and chief executive officer, said the plan’s fund was able to deliver a positive return despite a challenging economic year. The investment organization confirmed it now has more than 40,000 plan members.
“With these strong foundations in place, we’re eager to keep growing, delivering value, stability and pension security to even more members of Ontario’s university sector.”