The C$221 billion ($179 billion) Ontario Teachers’ Pension Plan (OTPP) is planning to inject C$70 billion ($57 billion) into private markets during the next five years, according to the Financial Times.
Private markets include real assets, such as real estate and infrastructure, as well as the debt and equity of privately owned companies. The redirection to private markets would lift the weighting OTPP has to regions beyond North America, with a particular focus on Europe and Asia. The retirement plan is planning to make 50 percent of future private investments outside North America, under the new investment strategy.
“For now, with very low yields available [from fixed income], we are looking to secure better, more balanced returns in other asset categories,” said Jo Taylor, president and CEO of the OTPP. “The ambition is a significant step up from the C$45 billion [$36 billion] that the OTPP has in real assets. Its plans could see the share of real a
