Investment performance highlights

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Investing for the long term – member-driven investing strategy

OPTrust is a global investor with a team of experienced investment professionals located in Toronto, London and Sydney. OPTrust’s investment mandate focuses on achieving the organization’s mission to pay pensions today and preserve pensions for tomorrow.

2015 has been a year of transition for our investment strategy. The “member-driven investing” (MDI) strategy framework sets a strong foundation on which we are able to navigate a challenging investment environment.

Over OPTrust’s 21 years of operation, its investment portfolio has realized an average annual return of 8.4%, net of internal and external investment expenses, exceeding our average funding target return for the same period.

Role of Contributions and Investment ReturnsAt December 31, 2015

On average, 73 cents of every pension dollar paid is generated by investment returns

Contributions and Investment Returns graph

27 cents is funded by member and employer contributions.

Fully funded in a challenging investment environment

The Plan remained fully funded despite an investment environment marked by a series of economic and market challenges.

Preserving the funded status surplus

The economic and market challenges created a highly volatile investment environment in 2015. During the year, we implemented a surplus preservation strategy ahead of the turbulent market conditions, which was designed to ensure the ongoing health of the Plan. Through this strategy, we made three important tactical decisions to protect our portfolio and reduce volatility.

  • First, we eliminated energy commodities from our strategic portfolio.
  • Second, we increased our exposure to Canadian fixed income.
  • Third, we decreased our exposure to public equities.

As a result, in 2015, OPTrust’s investments achieved an 8.0% total fund return, net of external management fees.

Total Fund Performance At December 31 (%)
OPTrust 2015 Total fund performance

Get the big picture

For more information on OPTrust’s strategy and results, see our full 2015 annual report.

Annual report covers