TORONTO, April 16, 2015 /CNW/ - Ontario Pension Board (OPB), the administrator of Ontario's Public Service Pension Plan (PSPP), ended 2014 with an annual investment return of 8.4 per cent. Net investment income during the year amounted to $1.64 billion and net assets exceeded $22 billion at year end.
"Our 2014 returns were 2.45 per cent above the long-term rate of return needed to meet our pension obligations," said Mark Fuller, President & CEO of OPB. "Healthy investment returns over the past three years, combined with low inflation and salary restraint, have led to continued improvement in the PSPP's funded position, which is now more than 98 per cent funded on a going-concern basis, up from 96 per cent at the end of 2013."
Public market investments, which include public market equity, fixed income and cash, returned 8.8 per cent for the year, while private markets investments consisting of real estate, private equity and infrastructure, returned 6.3 per cent.
"We continue to adjust our asset mix to enhance returns and manage risk," continued Mr. Fuller. "In 2014, we increased our target weights for private markets assets, such as infrastructure investments which provide an excellent match to our long-term cash-flow needs."
OPB continues to keep its focus on protecting the long-term sustainability of the Plan by emphasizing capital preservation. This has been a very successful approach over the 25 years that OPB has managed the Plan, generating an average annual compound rate of return of 8.6 per cent during that period.
OPB's full 2014 Annual Report, including Management's Discussion & Analysis and Financial Statements will be posted on www.opb.ca after it is tabled in the Legislature of Ontario.
Ontario Pension Board (OPB) administers Ontario's Public Service Pension Plan (PSPP), a defined benefit pension plan serving approximately 42,000 active members and their employers, as well as more than 40,000 retired and former members. With over $22 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
For further information: Media contact: Stephanie Woodward, Director, Stakeholder Relations, 416-601-4095, firstname.lastname@example.org, www.opb.ca