The Ontario Teachers’ Pension Plan is reporting a net return of 9.4 per cent for 2024, up from 1.9 per cent in 2023, according to its latest annual report.
The investment organization underperformed its benchmark return of 12.9 per cent, equivalent to $7.6 billion in negative value add. Its net assets grew to $266.3 billion, up from $247.5 billion in 2023. Investment income ($23.7 billion) and member and employer contributions ($4.3 billion) for the year were partially offset by benefits paid of $8.1 billion and administrative expenses of $1 billion.
Read: Ontario Teachers’ returns 1.9% for 2023
The return was driven by increases in public equities (23.2 per cent), private equity (11.7 per cent), venture growth (25. 8 per cent), infrastructure (9.1 per cent) and fixed income (4.8 per cent). While the real estate portfolio reported a loss (negative 0.7 per cent), it increased from negative 5.9 per cent in 2023.
The plan is fully funded as at Jan. 1, 2025, with a $29.1 billion preliminary funding surplus. This marks the plan’s 12th consecutive year being fully funded.
“The resilience of our portfolio, combined with our proactive approach to creating value, has positioned us strongly in an unpredictable economic climate,” said Jo Taylor, president and chief executive officer at the Ontario Teachers’, in a press release. “Our investment portfolio is well placed to deliver strong risk-adjusted returns for the plan in 2025 and meet our long-term obligations to the members we serve.”