Toronto, ON – University Pension Plan Ontario (UPP) today released its 2022 Annual Report outlining performance and development from its first full operational year. Amid historically challenging conditions and the Plan’s transitional portfolio state, the fund posted a -9.1% one-year rate of return in 2022, outperforming median defined benefit pension returns in Canada by 3.3%1. Despite these headwinds, the Plan maintained a healthy funding position, staying well-equipped to pay members’ pensions today and over the long term.
“In a period of soaring inflation, economic volatility, and increased geopolitical risk, we achieved significant milestones, helping create resilient value for more members. As we implement our long-term strategy, we’re keeping a careful eye on our evolving landscape while never losing sight of our top priority: providing secure and predictable pension income for our members, today and for generations to come,” said Barbara Zvan, President and Chief Executive Officer.
“2022 presented one of most volatile economic environments in recent memory, particularly for a newly formed fund. Our experienced investment team maintained a resolute focus on transitioning and integrating our incoming pension assets into a cohesive portfolio and implementing a long-term strategy designed for resiliency, performance, and value creation in a wide array of economic environments,” said Aaron Bennett, UPP’s Chief Investment Officer. “We remain well-positioned to meet the needs of members today and in the years ahead and agile to opportunities brought forth by market changes.”
Additional information about UPP’s 2022 results, including financial statements, is available in the 2022 annual report.
University Pension Plan Ontario (UPP) is a jointly sponsored defined benefit pension plan for Ontario’s university sector. UPP manages over $10 billion in pension assets and proudly serves over 39,000 working and retired members across 16 participating universities and sector organizations.
1 Based on a sampling of public sources, the annual average net return among Canadian DB pension plans in 2022 was -12.4% (RBC Investor & Treasury Services, January 2023, reporting -10.3%; Northern Trust Pension Universe Data, January 2023, reporting -12.8%; Financial Services Regulatory Authority of Ontario Quarterly Update on Estimated Solvency Funded Status of Defined Benefit Pension Plans in Ontario, December 2022, reporting -14.1% for plans subject to solvency funding).
2 On a smoothed asset basis
Managing Director, Strategic Communications and External Relations
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