OPB returns 1.8% in challenging investment environment

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stock market chart , Financial background © bluebay /123RF Stock PhotosIn a challenging 2018 market environment, the Ontario Pension Board finished the year with an annual investment return of 1.8 per cent, down from 10.8 per cent in 2017.

“This return reflected the challenging investment environment in 2018, including slowing global growth, rising central bank rates that tightened liquidity and uncertain geopolitical events such as Britain’s exit from the European Union and numerous trade disputes,” noted the OPB in a press release.

Net investment income during the year was $0.4 billion and net assets grew to $26.6 billion at year end. Despite the lower return, the OPB matched its benchmark for the year.

“OPB’s strategy of shifting assets from public to private markets continued to produce positive results in 2018,” said the OPB. “Private market investments, which include real estate, private equity and infrastructure, generated a return of 8.5 per cent, while public market assets returned -1.1 per cent.”

The OPB’s full 2018 annual report will be posted after it’s tabled with Ontario’s legislative assembly by the president of the treasury board.

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