Ontario Teachers’ Pension Plan Board’s (OTPP) infrastructure portfolio outperformed its benchmark, although, its net value and allocation decreased, according to its 2019 annual report.
Infrastructure assets delivered a one-year return of 4.2% surpassing the benchmark return of -0.3%. The four-year annualized rate of return recorded 8% exceeding the benchmark of 3.3%.
Net value of the infrastructure portfolio slipped to CAD 17bn (USD 12bn) from CAD 17.8bn in 2018. Allocation decreased to 8% from 9% in 2018 and 10% in 2017.
The fund’s total net assets reached CAD 207.4bn as of 31 December 2019, a CAD 16.3bn increase from 31 December 2018.
Total-fund net return reached 10.4%, propelled by strong returns in equities and fixed income. In comparison, net return was 2.5% for 2018.