The investment return for the Queen’s Pension Plan for the 12 months ending August 31, 2013 was 14.5535%. The fourth consecutive positive return was welcome after back-to-back negative years and relied almost exclusively on strong global equity markets: while the S&P/TSX Composite Index was up a modest 9.3% for the 12 months ending August 31, 2013, US and global equity markets posted double-digit returns (26.9% and 27.3% respectively). The Plan’s fixed-income holdings, meanwhile, returned 0.11 % and collectively beat its benchmark return by 1.24%.
Building on the prior year’s momentum, the Fund’s relative performance overall for the plan year continued to be decisively positive (5.76% ahead of the benchmark, before fees), reflecting particularly strong returns from 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 $1.528 billion. The return of 14.5535% 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 2013.