The New Brunswick Public Service Pension Plan saw a return of 1.75 per cent in 2018, yielding $132.3 million in additional net investment income, according to its annual report.
The increase was led by private equity, which returned 26.91 per cent during the year. Other alternative investments, such as infrastructure and real estate, were also positive, returning 6.39 per cent and 10.93 per cent, respectively.
For public equities, Canadian small cap returned 17.56 per cent, followed by large cap (8.75 per cent), U.S. equities (4.27 per cent) and international equities (6.65 per cent).
The plan, which is managed by Vestcor Corp., is also providing its 39,000 members with a full cost of living adjustment for the seventh consecutive year. Based on the consumer price index, this year’s increase is 2.12 per cent.
The decision was reached by Marilyn Quinn, the chair of the board of trustees, after she and the board reviewed the pension plan’s financial position, along with the results of a series of independent risk management tests as required by the plan’s funding policy to determine its financial health.
“We are very pleased to once again provide the full cost of living adjustment to all of our members,” said Quinn in a press release. “This is especially significant as 2018 proved to be a tumultuous year for global financial markets. The continued success of the New Brunswick Public Service Pension Plan in these unstable markets is a testament to our long-term lower risk investment strategy. The fund also continues to exceed risk management goals, providing continued reassurance of the long-term sustainability of the plan.”