2021 Performance
Returns (gross) Versus Policy Benchmark
Annual Rates Of Return (Net)

During 2021, the Plan achieved a return on invested assets of 12.9% net of investment management fees.

These return figures only reflect the Plan’s invested assets and do not incorporate the $1.7 billion promissory note received from the Government of Newfoundland and Labrador. The promissory note bears interest at a rate of 6% per annum and is a further fixed income investment of the Plan. Through the pension reform process, a primary objective of the establishment of the promissory note was to stabilize the Plan’s returns.

When combined with the Plan's invested assets, the inclusion of the promissory note results in a total return for 2021 of 10.9% net of investment management fees.

The impact of the promissory note had a dampening effect in four of the past five years, and the opposite impact in 2018. The note acts as a risk and return ballast for the Plan’s assets by providing a steady 6.0% return annually. In years where the return on the Plan’s invested assets exceeds 6.0%, the note will have a dampening effect on performance. When the return is below 6.0%, as it was in 2018, the note serves to enhance investment returns.

Total invested assets reached approximately $4.7 billion at December 31, 2021, an increase of approximately $0.5 billion over the December 31, 2020 balance of approximately $4.2 billion.


In addition to comparing performance against the Plan’s assumed actuarial discount rate of 6%, the TPPC also compares its performance against relative benchmarks on a total-fund and individual asset class basis. This benchmarking process is critical as it allows TPPC Management, members of the Investment Committee and Board of Directors to evaluate the effectiveness of the Plan’s investment strategy and implementation. TPPC’s benchmarks are approved annually by TPPC’s Board of Directors.

On a total-fund basis and for each asset class, the Fund seeks to outperform the benchmark rates of return, and this outperformance is described as “value-add”. A discussion of the Plan’s performance will always be anchored back to a comparison to the assumed actuarial discount rate and the Plan’s established policy benchmarks.

The following summarizes the Plan’s 2021 benchmarks by asset class:

Asset Class Benchmark
Canadian equity S&P / TSX Composite
Global equity MSCI ACWI C$
Emerging market equity MSCI Emerging Markets C$
Private equity 9.0% (net) / MSCI ACWI C$ + 3.0%
Real Assets
Real estate CPI + 4.0%
Infrastructure CPI + 5.0%
Fixed Income
Cash FTSE Canada 30 day TBill
Universe bonds FTSE Canada Universe Bond
Corporate bonds FTSE Canada All Corporate Bond
Private debt 8.0% (net)

The Plan’s net return for 2021 on invested assets of 12.9% exceeded the Plan’s policy benchmark of 9.2%, representing a value-added return of 3.7%. The value-added return stems from the active management undertaken by the Plan’s investment managers.