ARM Ch. 12 Pension Plan Report, April, 2022


Pension Report April, 2022

 

OTPP Innovation Platforms, one of the segments of our Pension Plan, is leading a $210 million funding for a company called Lendable. It is a company that uses a cutting-edge technology platform to simplify the process of getting consumer loans. Lendable is a London, England based company founded in 2014. It uses automation to enhance underwriting, and to offer customers better rates, transparency, and service.

 

Second Investment

OTPP is partnering with Sprott Resources, a streaming royalty to invest US $225 million in convertible notes held by Seabridge Gold, a wholly owned subsidiary of KSM mining. The notes pay a 6.5% coupon and will be exchanged at maturity for silver royalties on a KSM mining project in British Columbia.

 

Traver Cole of the Globe and Mail interviewed Jo Taylor the CEO of our Pension Plan in an article in the Globe and Mail Report on business magazine. The following information was provided during the interview:

  • Last year, contributions from the Ontario government and members of our plan totalled $ 3.2 Billion, and retiree benefits were $ 6.7 Billion. This gap is expected to increase. (As an aside, the returns on our investment more than cover the shortfall.)
  • Taylor feels that the inflation threat can be addressed with inflation protected revenues by rents from real assets in infrastructure and real estate.
  • 14% of the Plan is invested in commodities as an inflation edge.
  • Investing in private companies are less responsive to massive fluctuations in value.
  • Private assets give you predictable returns
  • Jo Taylor wants to increase the value of our Plan by $ 300 billion dollars.
  • International investments are now made in only nine different countries: Canada, U.S.A., Brazil, U.K., France, Germany, India, China and Australia.
  • Only 40 % of its assets are invested in equities.
  • Oil and gas exploration amounts to 3% of our portfolio.
  • When you consider fixed income securities, 49% of our Plan investments are Canadian.
  • Our Plan has reduced its carbon intensity by about 30% since 2019.
  • The average pensioner is 73. The active members average age is 43.
  • We have approximately 183, 000 active members and 143,000 retired members.

 

Paul Headdon

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