Real estate, infrastructure and private equity boost OPTrust returns for 2012

TORONTO – The OPSEU Pension Trust said Tuesday it earned a return of 10.1 per cent for 2012, helped by strong double-digit returns in its real estate, infrastructure and private equity portfolios.

The money manager said the results helped maintain the fully funded status of the Ontario Public Service Employees Union pension.

The results topped its target of 6.5 per cent and its average annual rate of return of 8.6 per cent since it was created in 1995.

The plan’s net assets increased to $14.7 billion at the end of 2012 compared with $13.7 billion at Dec. 31, 2011, after paying over $745 million in pension benefits last year.

The infrastructure portfolio led the results with a return of 23.7 per cent, while the plan’s private equity and real estate investments returned 20.5 per cent and 17.9 per cent respectively.

The global equities portfolio posted a 17.8 per cent return and Canadian equities earned 9.1 per cent.

The fixed income and real return bond portfolios earned 3.4 per cent and three per cent respectively. The energy commodities portfolio lost 3.8 per cent.

OPTrust invests and manages the pension funds and administers the OPSEU Pension Plan, with almost 84,000 members and retirees.