Investment results

Market conditions

Within the plan, International Equity was the best performer in the third quarter, returning 6.11%. Marketwise, S&P/TSX Composite Index was up 4.73%. S&P 500 index was up 6.83%. MSCI EAFE Index was up 2.78%. FTSE Canada Universe Bond Index was up 0.44%. The following table depicts the performance of the Plan’s fund (per cent return).

Performance

Asset class Market value
($ millions)
2020
Jul-Sep
(%)
2020
YTD
(%)
2019
Annual
(%)
2018
Annual
(%)
2017
Annual
(%)
2016
Annual
(%)
2015
Annual
(%)
Fixed income
Cash and short-term 285.4 -0.4 1.1 1.6 1.3 0.7 0.7 0.8
Bonds 12,024.8 1.7 9.8 10.3 0.5 3.4 3.2 3.1
Equities
Canadian equities 3,417.7 5.2 -9.1 20.4 -8.3 9.3 21.5 -4.0
U.S. equities 3,575.8 4.5 5.0 23.9 3.0 14.1 6.3 21.8
International equities 3,100.9 6.1 -3.3 17.1 -8.1 25.4 3.7 16.3
Real estate, private equity and infrastructure 5,687.8 1.8 3.5 11.8 17.4 13.1 10.0 16.6
Currency overlay -8.8
Total (DB component)* 28,083.6 3.04 3.34 14.69 0.89 10.42 7.93 7.27
Benchmark --- 2.86 4.95 16.79 -1.94 8.59 6.72 5.12

*Numbers may not add up due to rounding.

Investment highlights

  • The fund’s third quarter return was 3.04%.
  • As of September 30, 2020, the fund held assets of $28.1 billion.
  • The fund had net cash outflows of $151.5 million in the third quarter.
  • We added $16.6 million to Private Debt, $38.2 million to Private Equity, and $6.5 million to Infrastructure.
  • We withdrew $20 million from High Yield, $149.6 million from U.S. Equity, and $43.1 million from Real Estate.

Fund Assets - October 2000 to September 30, 2020

Asset-mix highlights

  • As at September 30, 2020, 56.2% of assets were invested in equities and alternative investments compared to the asset mix target of 54.9%. These investments were within the allowable range and were made up of 12.2% Canadian equities, 12.7% U.S. equities, 11.0% International equities, 10.9% real estate, 4.9% private equity and 4.4% infrastructure.
  • 43.8% of assets were invested in bonds and short-term investments, compared to an asset mix target of 45.1%. This included 11.8% real return bonds, 31.1% nominal bonds and private debt and 1.0% in cash and short-term investments and currency overlay.

*Numbers may not add up due to rounding.