After Strong 2015, Canadian Pension Sees Opportunity in Volatility

The top executive from OPTrust – the entity which administers the Ontario Public Service Employees Union Pension Plan – said on Monday he sees opportunity in volatile markets around the world.

The pension fund had a strong showing in 2015, returning 8 percent.

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Chief Executive Hugh O’Reilly said he expected market conditions to remain difficult in 2016, but noted that could present opportunities for long-term investors.

“We expect that we’ll continue to see volatility on stock markets worldwide and the low interest rate environment will continue,” he said in an interview with Reuters. “We may use our liquidity to take advantage of market distortions as they arise later in the year.”

OPTrust, which administers the Ontario Public Service Employees Union Pension Plan, said its net assets had grown to C$18.4 billion at the end of 2015, compared with C$17.5 billion a year earlier, helping it maintain the net surplus position it has had since 2009.

OPTrust tweaked its investment strategy in 2015 to focus on maintaining its fully funded status against the backdrop of ongoing market volatility, economic uncertainty and persistent low interest rates.

The average Canadian public pension plan returned 5.4 percent in 2015, according to RBC Investor & Treasury Services.

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