As reported in The Globe And Mail, the Teachers Pension Fund underperformed its 10.7-per-cent benchmark by more than two full percentage points. During the pandemic, the bond-heavy portfolio provided a 8.6-per-cent return for the calendar year.
A benchmark is a target.
OTPP, the Ontario Teachers’ Pension Plan strives to achieve a 10.7% annual return. They missed it by 2.1%.
But, 8.6% return is still good and sufficient to allow the fund to pay pensions to teachers as promised.
Have questions about this news? Call me at 1-888-554-6661.
BRUCE YOUNGBLUD, CFP, CIM
President of Pension Solutions Canada
