Ontario Pension Board earns 8.1 per cent investment return in 2016 maintaining strong funded status

TORONTO, March 20, 2017 /CNW/ - Ontario Pension Board (OPB), the administrator of Ontario's Public Service Pension Plan (PSPP), ended 2016 with an annual investment return of 8.1 per cent, a value add of 1.5% over its benchmark. This solid return helped the Plan end the year with a strong estimated funded status of 97%. Net investment income during the year amounted to $1.75 billion and net assets grew to $24.4 billion at year end.

"I am very pleased with our investment returns and performance in 2016; we successfully navigated through continued market volatility to deliver strong returns across our portfolio," said Mark Fuller, President and CEO of OPB.

OPB continued its strategy of shifting assets from public to private markets in 2016, increasing its gross exposure by approximately $831.6 million. This included increasing its infrastructure portfolio by 6.1 per cent, private equity portfolio by 68.5 per cent, and real estate portfolio by 6.8 per cent.

Overall, public market investments, which include public market equity, fixed income and cash, returned 7.0 per cent for the year, while overall private markets investments consisting of real estate, private equity and infrastructure, returned 11.1 per cent.

OPB's full 2016 Annual Report, including Management's Discussion & Analysis and Audited Financial Statements will be posted on www.opb.ca after the President of the Treasury Board tables it with the Legislative Assembly.

About Ontario Pension Board

Ontario Pension Board (OPB) administers Ontario's Public Service Pension Plan (PSPP), a defined benefit pension plan serving approximately 41,000 active members and their employers, as well as more than 43,000 retired and former members. With over $24.4 billion in net assets under management, the PSPP is one of Canada's largest pension plans. It's also one of Canada's oldest pension plans, successfully delivering the pension promise since the early 1920s. To learn more about OPB, visit www.opb.ca.

SOURCE Ontario Pension Board

Media contact: Ileana Brito, Manager, Stakeholder Relations, 416-601-4082, [email protected], www.opb.ca