The Ontario Teachers’ Pension Plan (Teachers’) is the largest single-profession pension plan in Canada, responsible for investing the plan’s assets and administering pensions for almost 300,000 active and retired teachers.
Teachers’ diversified investment program includes a C$10.0 billion infrastructure portfolio (at Dec. 31, 2008) designed to generate long-standing, stable returns to pay inflation-indexed pensions. Teachers’ invests directly in infrastructure enterprises as a long-term investor, selecting assets to match the plan’s investment goals and future pension obligations.
When Teachers’ started investing in financial markets in 1990, the fund stood at C$19 billion. Today, it has grown to C$87.4 billion (at Dec. 31, 2008) representing an average annual rate of return of 9.6% since 1990. Since 1990, the investment team has generated $15.8 billion more than market benchmarks.
Teachers’ Infrastructure Group is a global investor and focuses on assets including:
- Airports
- Toll roads
- Water and wastewater utilities
- Electricity distribution and transmission
- Oil and gas pipelines
- Contracted power generation
- Marine container terminals
- Timberlands
To ensure the portfolio companies remain productive over the long investment horizon, Teachers’ may provide financial support for additional investments in their businesses.