Returns – how our investments are doing
The STF closely monitors our investment performance and returns, reporting quarterly, annual, and four-year returns to the STF Executive, the Investment Committee, the Pension and Benefits Board, and the Budget, Finance and Audit Committee to ensure all parties are aware of the shorter and longer-term performance of our investments.
Investment markets in the first six months of 2022 were particularly challenging as global equity markets and bond markets dropped in response to the war in Ukraine, COVID-19 lockdowns in China, related supply chain disruptions, the spectre of runaway inflation and rising interest rates.
The Federation’s portfolio was negatively impacted and finished the fiscal year with a -7.3 percent return, decreasing our asset base to $7.0 billion. This return compared favourably to the double-digit declines in public bond and equity markets as allocations to alternative investments helped protect the portfolio.
The Federation continues to invest for the long term and, as such, expects there to be down years. As the investment landscape has shifted, asset-liability studies will be conducted to ensure the investment strategy aligns with the Federations’ benefit obligations over the long term, and that the pension and benefit plans remain stable and secure.
The following results are from June 30, 2022. We update these figures once every year.