The net investment return for the Queen’s Pension Plan for the 12 months ending August 31, 2014 was 17.7093%. The second consecutive double-digit return marks the fifth positive return after back-to-back negative years and relied almost exclusively on strong global equity markets: the S&P/TSX Composite Index was up an impressive 27.1% for the 12 months ending August 31, 2014, as were the US and global equity markets (28.8% and 25.1% respectively). The Plan’s fixed-income holdings, meanwhile, returned 7.3%.
Building on the prior year’s momentum, the Fund’s relative performance overall for the plan year continued to be positive (0.37% ahead of the benchmark, before fees), reflecting particularly strong returns from almost all active equity and global balanced fund managers.
The Fund continues its historical pattern of being invested on a relatively conservative basis, with due regard to the fact that active, long-service Plan members shoulder considerable investment risk, especially as they approach retirement. Our largest manager is Letko Brosseau and Associates, which has a balanced mandate – Canadian and foreign equities as well as Canadian fixed income.
We also have a number of specialist managers:
Assets at the end of August were approximately $1.766 billion. The return of 17.7093% will be reflected in the account balances and projected pensions of all plan members. This information is included in the individual pension statements which will be distributed in December 2014.