Ontario Teachers' announces positive 2024 results
Achieved a one-year total-fund net return of 9.4%.
Strong returns across public equity, venture growth, credit and inflation sensitive assets.
Underperformed the 2024 benchmark return of 12.9% resulting in negative value add of $7.6 billion.
Delivered a ten-year annualized total-fund net return of 7.4% and return since inception of 9.3%.
Continued to have a strong preliminary funding surplus of $29.1 billion and is fully funded for the 12th straight year.
Achieved our 2025 interim target of reducing our portfolio emissions intensity, compared to a 2019 baseline, one year early.
TORONTO, March 20, 2025 /CNW/ - Ontario Teachers' Pension Plan Board (Ontario Teachers') today announced a one-year total-fund net return of 9.4% for the year ended December 31, 20241, compared to 1.9% return in 2023. Net assets grew to $266.3 billion, up from $247.5 billion in 2023. Investment income of $23.7 billion and member and employer contributions of $4.3 billion for the year were partially offset by benefits paid of $8.1 billion and administrative expenses of $1.0 billion.
The plan is fully funded as at January 1, 2025, with a $29.1 billion preliminary funding surplus. This marks the plan's 12th consecutive year being fully funded (meaning plan assets exceed future pension liabilities), underscoring the plan's long-term financial health and stability.
"Our teams worked methodically in 2024 to create value in the portfolio, delivering a 9.4% return, significantly above the outcome for 2023 and more in line with our long-term returns. We had positive contributions from across the plan, with notable success in venture growth, credit, inflation-sensitive and public equity investments. 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 & Chief Executive Officer. "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."
Results reflect underperformance relative to the benchmark return of 12.9% by 3.5%, or $7.6 billion in negative value add2. The benchmark underperformance was primarily attributed to assets in private equity and real estate trailing their respective benchmarks.
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1 All figures are as at December 31, 2024, and denominated in Canadian dollars unless noted.
2 Value-add is the amount of return in excess of (below) benchmarks after deducting management fees, transaction costs and administrative costs allocated to the Active programs (includes annual incentives but does not include long-term incentives).
Impact of currency on returns
In 2024, the fund experienced a foreign currency gain of $6.9 billion as assets denominated in foreign currencies appreciated in value when converted back into Canadian dollars. This gain was primarily driven by the appreciation of the U.S. dollar compared to the Canadian dollar. The fund's net exposure to the U.S. dollar is significantly larger than any other foreign currency.
Investment performance
Given the plan's liabilities stretch decades into the future, results over longer periods are particularly important. Ontario Teachers' has delivered an annualized total-fund net return of 9.3% since inception in 1990, and five- and 10-year annualized total-fund net returns of 6.9% and 7.4%, respectively.
Time period
One-year
Five-year
10-year
Since inception
Total-fund net return
9.4 %
6.9 %
7.4 %
9.3 %
The table below summarizes Ontario Teachers' investment returns and related benchmark returns by investment asset class for the current and previous year.
Portfolio Performance by Asset Class (all figures as at December 31)
2024
2023
Fund returns (%)3
Actual
Benchmark
Actual
Benchmark
Equity
Public equity
23.2
25.8
19.5
19.7
Private equity
11.7
23.7
3.6
16.3
Venture growth
25.8
29.2
(0.7)
12.8
16.7
24.8
7.2
16.9
Fixed income
4.8
4.8
4.3
4.3
Inflation sensitive
Commodities
25.2 %
25.2 %
0.0
0.0
Natural resources
13.3 %
15.0 %
0.2
3.3
