ARM Ch. 12 Pension Plan Report, September 2021 (updated)


Pension Report

Updated

 

September, 2021

 

OTPP had a return of 3.8% on their investments ending June 30, 2021. The assets grew to $227.7 billion and the 12-month return was 13.2 %. The other major pension plans had better returns over the last 6 months. Caisse de depot et placement du Quebec had a return of 5.6 % and the Ontario Municipal Employees Retirement System (OMERS) had a return of 8.8%. The plan invested in a “broad basket” of commodities to increase its exposure to inflation-sensitive assets. The investments in commodities made up 12% of its asset mix. Last year it was 8%. Bonds represented 15% of its portfolio and 20% in fixed income investments

 

OTPP has also invested $375 million in Apply Board, a Canadian Company based in Kitchener Ontario. The company connects international students who want to study abroad with schools in North America, the U.K., and Australia. The students can connect with 1,500 schools with various platforms developed by Apply Board.

 

Burton’s Biscuit Company has been sold by OTPP. This is a U.K. based biscuit company that was acquired in 2013. A Belgium based holding company called Ferro purchased the company.

 

Brookfield Asset Management Inc. has raised 7 billion dollars for its new impact investment fund called Global Transition Fund. OTPP and Singapore’s Sovereign Wealth Fund have provided some of the funds.

 

OTPP has acquired the majority of interest in Acorn Health. It provides Applied Behavioural Analysis (ABA) therapy for children with Autism. The company operates 51 clinics in 7 American states. Home and centre-based services are provided.

 

Several Canadian Pension Plans, notably C.P.P. Investment Board, B.C. public sector Pension and OTPP have all made investments in some Chinese Companies linked with military and human rights violations.

 

OTPP had $740 million invested in shares of Alibaba and $200 million in shares of Tencent. Alibaba has developed facial recognition software which has been used against Uyghurs in China. Tencent owns the social media application called We Chat used for taking technological surveillance.

 

Jo Taylor, the CEO of OTPP wants our fund to become more open-minded in their investments. He is interested in using a more international focus when investing. Approximately 70% of our investments are in North America as of December 2020.

 

 

Paul Headdon

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