OPTrust reported 2014 investment results of 12%, net of external management fees, significantly outperforming its benchmark return of 6.2%.
“Exceptional returns in our infrastructure portfolio, complemented by solid performance in real estate and public equities, offset challenging market conditions such as this year’s steep decline in energy prices,” says OPTrust president and CEO Hugh O’Reilly. “The results also validate our ongoing commitment to strengthening the relationship between assets and liabilities in our investment strategy.”
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Net investment income for 2014 was $1.8 billion, and after collecting contributions of $515 million and paying $798 million in benefits, the plan’s net assets increased to $17.5 billion at year-end ($16 billion as at Dec. 31, 2013).
OPTrust’s infrastructure portfolio led performance in 2014, with a return of 48%. These results were driven in large part by a significant investment in European infrastructure. The plan’s real estate portfolio delivered a return of 10%.
The plan’s public equities portfolio returned 11.8%, supported by its global equity exposure. The private equity portfolio returned 11.3% in a year in which OPTrust made 12 new commitments to both fund and direct investments.
Challenged by volatility in the energy sector and declining oil prices, the energy commodities portfolio delivered a return of -36.2%, consistent with market performance for this asset class.
In 2014, OPTrust remained fully funded for the second year running.
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