Investment results
Market conditions
Within the plan, US Equity was the best performer in the second quarter, returning 4.15%. Marketwise, S&P/TSX Composite Index was up 1.10%. S&P 500 index was up 6.32%. MSCI EAFE Index was up 0.66%. The FTSE Canada Universe Bond Index was down 0.69%. The following table depicts the performance of the Plan’s fund (per cent return).
Performance
| Asset class | Market value ($ millions) |
2023 Apr-Jun (%) |
2022 Annual (%) |
2021 Annual (%) |
2020 Annual (%) |
2019 Annual (%) |
2018 Annual (%) |
2017 Annual (%) |
2016 Annual (%) |
|---|---|---|---|---|---|---|---|---|---|
| Fixed income | |||||||||
| Cash and short-term | 66.2 | 1.1 | 1.7 | -0.2 | 0.4 | 1.6 | 1.3 | 0.7 | 0.7 |
| Bonds | 12,974.1 | 0.4 | -16.8 | -1.4 | 11.3 | 10.3 | 0.5 | 3.4 | 3.2 |
| Equities | |||||||||
| Canadian equities | 2,694.3 | 1.9 | -4.6 | 27.1 | 1.6 | 20.4 | -8.3 | 9.3 | 12.5 |
| U.S. equities | 2,391.5 | 4.1 | -10.0 | 24.9 | 15.4 | 23.9 | 3.0 | 14.1 | 6.3 |
| International equities | 2,573.8 | -1.1 | -11.0 | 4.6 | 10.8 | 17.1 | -8.1 | 25.4 | 3.7 |
| Real estate, Private equity and Infrastructure | 8,649.3 | 0.4 | 19.5 | 26.6 | 7.4 | 11.8 | 17.4 | 13.1 | 10.0 |
| Currency overlay | 443.2 | ||||||||
| Currency hedging | 10.0 | ||||||||
| Total (DB component)* | 30,342.4 | 0.7 | -6.7 | 11.3 | 9.4 | 14.7 | 0.9 | 10.4 | 7.9 |
| Benchmark | --- | 1.7 | -11.7 | 8.6 | 10.3 | 15.8 | -1.9 | 8.6 | 6.7 |
Note: Numbers may not add up due to rounding.
Investment highlights
- The fund’s second quarter return was 0.68%.
- As of June 30, 2023 the fund held assets of $30.3 billion.
- The fund had net cash outflows of $453.5 million in the second quarter.
- We added $37.1 million to Private Debt, $1.6 million to Long Bonds, $98.4 million to the Transition Bond Account, $52.7 million to US Equity, $59.4 million to Private Equity, and $442.3 million to Equity Overlay (Hedge).
- We withdrew $622.3 million from Canadian Equity, $501.7 million from International Equity, $14.9 million from Infrastruture, and $6.1 from Currency Hedging.
Fund Assets - October 2000 to June 30, 2023
Asset-mix highlights
- As at June 30, 2023, 57.0% of assets were invested in equities and alternative investments compared to the asset mix target of 57%. These investments were within the allowable range and were made up of 8.9% Canadian equities, 9.7% U.S. equities, 8.5% International equities, 14.5% real estate, 6.9% private equity and 7.1% infrastructure.
- 43.0% of assets were invested in bonds and short-term investments, compared to an asset mix target of 43%. This included 10.1% real return bonds, 32.6% nominal bonds, private debt, and bond overlay, and 0.2% in cash, short-term investments, and 0.0% in currency hedging.
Note: Numbers may not add up due to rounding.