Ontario Pension Board returns 1.8 per cent in challenging 2018 investment environment

Sunday, 24 March 2019 06:22.PM

Ontario Pension Board (OPB), the administrator of Ontario's Public Service Pension Plan (PSPP), ended 2018 with an annual investment return of 1.8 per cent, matching its benchmark, following a return of 10.8 per cent in 2017.

This return reflected the challenging investment environment in 2018, including slowing global growth, rising central bank rates that tightened liquidity, and uncertain geopolitical events such as Britain's exit from the European Union and numerous trade disputes. At December 31 2018, the Plan's funded status was estimated at 93 per cent, with assets at market (down from 97 per cent at the end of 2017). Net investment income during the year amounted to $0.4 billion and net assets grew to $26.6 billion at year end.

OPB's strategy of shifting assets from public to private markets continued to produce positive results in 2018. Private market investments, which include real estate, private equity and infrastructure, generated a return of 8.5 per cent, while public market assets returned -1.1 per cent.

OPB's full 2018 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.

Ontario Pension Board (OPB) administers Ontario's Public Service Pension Plan (PSPP), a defined benefit pension plan serving approximately 45,000 active members and their employers, as well as more than 44,000 retired and former members. With $26.6 billion in net assets, 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