The Colleges of Applied Arts and Technology pension plan saw a net return of 9.5 per cent for 2023, with net assets of $20.1 billion, up from $18.2 billion in 2022, according to its latest annual report.
As of Jan. 1, 2024, the investment organization maintained a healthy funding level of 124 per cent on a going-concern basis — with $1.24 set aside for every dollar promised in pensions — increasing its funding reserves to $5.3 billion.
Over a 10-year period, the plan delivered an annualized return of 9.3 per cent, outperforming both its policy benchmark (7.3 per cent) and the plan’s discount rate (4.9 per cent) for that timeframe.
Read: CAAT remains 124% funded despite 2022 investment losses: annual report
The plan saw positive returns in global equities (19.8 per cent), emerging markets equity (19 per cent), nominal bonds (7.4 per cent) and private equity (5.9 per cent). However, commodities recorded a loss (negative 6.6 per cent) during the year. In 2023, Canadian holdings made up nearly 30 per cent of the plan’s assets, including investments in equities, bonds, real estate and infrastructure.
In a press release, Derek Dobson, the CAAT’s chief executive officer, said the plan has seen a well-funded status for more than a decade. “Reserves protect the plan against any unexpected headwinds, which reinforces benefit security.”
Read: How the CAAT is supporting its ESG aspirations through responsible investments, team-building