Net investment income during the year amounted to $1.75 billion, compared to $1.22 billion in 2015, and net assets grew from $23 billion in 2015 to $24.4 billion by the end of 2016.
“After lowering our discount rate to 5.70 per cent from 5.95 per cent, the PSPP remains well funded at 97 per cent” on a going-concern basis, the pension board’s president and chief executive officer Mark Fuller said. “Our funding discipline and long-term investment performance have enabled contribution levels to remain affordable and benefits to be maintained.”
The Ontario Pension Board increased its gross exposure to private markets by $831.6 million, which included increasing its infrastructure assets by 6.1 per cent, its private equity portfolio by 68.5 per cent and its real estate portfolio by 6.8 per cent.
Overall, the plan’s private market investments returned 11.1 per cent. This is the same rate of return the plan saw last year. Public market investments, including public market equity, fixed income and cash, returned 7 per cent for the year.
According to a press release from the Ontario Pension Board, its full annual report will be published once the president of the the province’s treasury board tables it with the legislative assembly.