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Queen's University

2013 Pension plan return hits 14.6%

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:

  • 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); and
  • An investment in a pooled fixed income fund with Integrated Asset Management Corp.

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.

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