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Queen's University
 

2014 Pension plan return hits 17.7%

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:

  • Canadian equities: Burgundy Asset Management, Connor Clark & Lunn, Guardian Capital, and TD Quantitative Capital (on a passive basis);
  • Canadian bonds: Beutel Goodman and PIMCO;
  • Foreign equities: Manning & Napier Advisors, Orbis Investment Management, and State Street (on a passive basis);
  • An investment in a pooled fixed income fund with Integrated Asset Management Corp; and
  • New this year is an investment in real estate and infrastructure via two funds managed by OMERS.

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. 

 

 

Queen's Human Resources
Fleming Hall, Stewart-Pollock Wing
Kingston, Ontario, Canada. K7L 3N6.
T: 613.533.2070 | F: 613.533.6196
hradmin@queensu.ca