The Ontario Teachers’ Pension Plan posted an 11% gain last year, helped by growth in private equity and natural resources that mitigated losses in its bond portfolio.
The fund outperformed its benchmark by 2.3 percentage points, lifting assets under management to $241.6 billion, the Toronto-based pension fund said in a news release.
The firm’s indirect exposure to Russia is less than $50 million, the fund said. Ontario Teachers’ Pension is also ensuring its portfolio companies comply with sanctions imposed on Russia.
Private equity holdings advanced 29% last year, while resources returned 28%. The fund’s private investments in resources include royalties on metals, mining, energy as well agricultural assets.
The pension fund said its efforts to balance and diversify its portfolio through increasing allocations to credit, real assets and inflation-sensitive investments proved timely, and that it’s positioned strongly to weather the impacts of higher commodity prices.
Ontario Teachers’ made almost 50 deals for private assets last year, including a 40% stake in Finland’s largest electricity distributor and 50% of a U.S. solar and energy storage portfolio from NextEra Energy.
The fund has committed $5 billion in energy transition assets, pushing its green portfolio to $30 billion.
