The Ontario Pension Board is reporting an 8.1 per cent investment return for 2024, pushing its net assets under management to $34.1 billion.
The one-year return fell short of the OPB’s benchmark (11 per cent), while its five- and 10-year returns were 3.8 per cent and 5.3 per cent, respectively.
Global (26.9 per cent) and Canadian (24.6 per cent) equities contributed to the total fund return, followed by emerging market equities (15.2 per cent) and private equity (14.6 per cent). Equities in the U.S. benefited from investor enthusiasm around opportunities from the artificial intelligence market, it said.
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However, global real estate (1.1 per cent) performed poorly due to office assets, which have been impacted by a slow return to in-person working.
During 2024, the OPB worked alongside the Investment Management Corp. of Ontario, its exclusive investment manager, to conduct an asset liability study and refreshed its strategic asset allocation to create better diversification across asset classes and increase its access to liquidity.
The investment organization weathered a challenging investment environment, said Darwin Bozek, president and chief executive officer at the OPB, in the report.
“As we do periodically, we didn’t hesitate to undertake some significant work to address those challenges, and in doing so, we developed a funding response plan including a contribution rate adequacy study, experience study and asset/liability study, which helped us formulate our new strategic asset allocation.”