OTPP - Ontario Teachers Defined Benefit Pension Plan

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Jaunty
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Re: OTPP - Ontario Teachers Defined Benefit Pension Plan

Post by Jaunty »

A small number of VP's (and P's) go back to the classroom. The biggest single number I know of was the year Harris pulled them out of the Federation. At least in our area the we/them (Teachers/Administration) hasn't become the sort of issue knotley describes - but it has the potential. A Board could hire the returning VP as a teacher over and above the classroom number allotment in the collective agreement, if there aren't provisions in the collective agreement to cover the VPs return. There are other ways around it too, depending on the agreement as the number of Board level resource teachers is seldom defined (we'll make the ex-VP the P.Ed Consultant and put the Consultant back in the classroom if you won't take the ex-VP back) as are the number of school level positions like Librarian, Special Education classroom or in-school resource staff etc. The ex-Admin could either be fitted into one of these slots or a trade could be made with the Federation - one of their members into the slot and the ex-Admin into the classroom.
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George$
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Re: OTPP - Ontario Teachers Defined Benefit Pension Plan

Post by George$ »

The link for the 2010 OTPP annual report can be found here.

In my opinion the OTPP reports are always an interesting and informative read - they clarify many issues that other plans face.

[ Not necessary to read all 122 pages. :shock: to appreciate it.]
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George$
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Re: OTPP - Ontario Teachers Defined Benefit Pension Plan

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The OTPP returns for 2011 are outstanding - at 11.2%. They exceed all others it seems!

Well worth looking at the OTPP home page and their informative 2011 Annual Report page.

Question. How did OTPP get 11.2% when others like OMERS realized a more representatrive 3.2% for 2011?

Partial answer. OTPP had a heavy return from Fixed income - but not benough in itself to explain the 11.2%.

BUT - It looks to me that they may have used leverage - but this is not discussed as far as I can see. Did they borrow a pile of money at very low interest rates from the government and then turn it around with a higher return? Does any reader understand this better than I do?
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Re: OTPP - Ontario Teachers Defined Benefit Pension Plan

Post by brucecohen »

George$ wrote: BUT - It looks to me that they may have used leverage - but this is not discussed as far as I can see. Did they borrow a pile of money at very low interest rates from the government and then turn it around with a higher return? Does any reader understand this better than I do?
I'm not aware of any facility that allows OTPP to borrow from the govt. I haven't looked at their annual report but the outsized gain you cite might be attributable to the creation of leverage by using derivatives. OTPP pioneered pension fund use of derivatives. Also, how much of OTPP's performance was attributed to the sale of Maple Leaf Sports and Entertainment. I think the Maple Leafs were among the best investments OTPP ever made.
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Re: OTPP - Ontario Teachers Defined Benefit Pension Plan

Post by Jaunty »

I don't know if this helps, but returns by asset class:

Asset Class Performance vs. Benchmark
Equities Return: -0.8% Benchmark: -5.1%
Fixed income Return: 19.9% Benchmark: 19.5%
Commodities Return: -2.3% Benchmark: -1.5%
Real assets Return: 13.1% Benchmark: 13.3%
Total Return: 11.2% Benchmark: 9.8%
flywaysuzy
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Re: OTPP - Ontario Teachers Defined Benefit Pension Plan

Post by flywaysuzy »

Maybe Canadian pension plans are some of the purchasers of the Italian/Spanish/Greek bonds? :?
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Re: OTPP - Ontario Teachers Defined Benefit Pension Plan

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The Maple Leaf Sports and Entertainment sale closes in 2012 and I would presume will have an impact on the 2012 financial statements, not the 2011 statements. From Teachers' Annual Report:
Maple Leaf Sports & Entertainment (MLSE): In December, we reached an agreement to sell our 79.53% ownership share in MLSE to Bell and Rogers Communications Inc. for $1.32 billion, based on an enterprise value of more than $2 billion. MLSE is one of Teachers’ longest standing and most successful investments. The divestiture effort was led by Teachers’ Private Capital and is expected to close in mid-2012 following regulatory and league approvals.
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Re: OTPP - Ontario Teachers Defined Benefit Pension Plan

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The 2013 annual report is out - see
OTPP Annual Reporting

and brief (8 page)
2013 Report to Members

and full 2013 annual report (110 page)
2013 annual report

and from CNW
TORONTO, April 1, 2014 /CNW/ - Ontario Teachers' Pension Plan (Teachers') today announced a rate of return of 10.9% for the year ended December 31, 2013, boosting net assets to a record $140.8 billion from $129.5 billion at the end of 2012.

The plan exceeded its consolidated investing benchmark of 9.3% by 1.6 percentage points, representing $2.1 billion in value added. Investment earnings for 2013 were $13.7 billion, versus $14.7 billion in 2012. Since the plan's inception in 1990, total investment income generated has accounted for 77% of the funding of the pensions of our members, with the other 23% coming from member and government contributions.

"Our portfolio of assets performed very well in 2013 and outperforming our benchmark further adds to the sustainability of our plan and supports our goal of retirement security," said Ron Mock, President and Chief Executive Officer. "The agility and innovation for which our investment team is known will be important in the future, as we face an increasingly competitive investment landscape."

"Our rate of return since inception is 10.2%," he said. "These results show the benefits of our long-term global outlook, strong risk management and diversified portfolio." According to CEM Benchmarking's latest data, for the 10 years ending in 2012, Teachers' total returns and value-added returns were the highest among large global peer pension funds.

CEM's rankings also had Teachers' in first place for pension service among global pension funds. Teachers' Quality Service Index, which measures members' satisfaction with our Member Services group based on survey responses, also remained high at 9.1 out of 10 in 2013.
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Re: OTPP - Ontario Teachers Defined Benefit Pension Plan

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Reuters wrote:The Ontario Teachers' Pension Plan Board, which manages investments for Canada's largest single-profession pension plan, violated speculative position limits in CME Group Inc's lean hog futures market, the exchange-operator said on Friday.

Chicago-based CME fined the board $15,000 and ordered it give up nearly $18,000 in profits for exceeding position limits on two dates in March 2013, according to a disciplinary notice. The pension plan had assets worth almost $141 billion as of Dec. 31.
Hog trades? This can be spun into various jokes...
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