The Colleges of Applied Arts and Technology pension plan is reporting a return of 8.4 per cent in 2025.
The investment organization’s net assets under management grew to $25.4 billion with a funding reserve of $6.7 billion, up from $23.3 billion and $6.1 billion, respectively, in 2024. During a 10-year period, the plan achieved an annualized net return of 9.6 per cent, according to a press release.
Read: CAAT returns 15.2% in 2024, net assets increase to $23.3 billion
Public equities (21.7 per cent) enhanced the CAAT’s 2025 return results, followed by commodities (4.5 per cent) and nominal bonds (4.2 per cent). Nearly half (45.5 per cent) of the investment organization’s portfolio is exposed to U.S.-based assets, while Canadian assets represented 23.9 per cent of the portfolio.
Kevin Fahey, acting chief executive officer, plan manager and chief investment officer at the investment organization, said more than half of the portfolio is invested in what’s deemed as return-enhancing asset classes, specifically equities and corporate credit.
“Our 10-year annualized net return significantly outperformed [the] CAAT’s policy benchmark and discount rate, which reflects the long-term rate of return required to make the plan sustainable.”
Earlier this year, the organization removed CEO Derek Dobson following a formal governance review prompted by questions around a $1.6-million vacation payout plan and a workplace relationship.
Read: CAAT CEO departing following leadership crisis, paying back $1.6 million vacation payout