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.