ONTARIO TEACHERS PENSION PLAN BOARD

The Ontario Teachers Pension Plan Board is a private pension fund that administers benefit pension for school teachers within Ontario and is currently Canada’s largest single profession pension plan. The Ontario Teachers Pension Plan Board, or OTPP for short, was established in 1990, and, prior to its establishment, teachers’ pensions in Ontario had been solely sponsored by the government with assets invested in government bonds only. The board, also known commonly as Teachers’, currently has over $154 billion in net assets with over 1000 employees located in its head office in Toronto and investment offices in London and Hong Kong. The OTPP also has an office in New York, which is owned by Cadillac Fairview, the board’s real estate subsidiary with approximately 1,400 employees. The company manages equity, fixed income, and alternative investment portfolios, investing its assets in value stocks of large companies, indexed stocks, and actively managed equities. The OTPP utilizes a bottom up stock picking approach and benchmarks its performance against the S&P/TSX Composite Index, S&P 500, Morgan Stanley Capital International (MSCI) EAFE Index, and the MSCI Emerging Markets Index. OTPP’s process looks reviews hundreds of companies, first seeking through direct contact or identifying a macro level theme to find undervalued companies, analyzing through fundamentals, quality of management, business strategy, performance, assets, and other indicators, and monitoring its current investments against possible threats using oversight, foresight, and market intelligence. The company has a current market value of $13.6 billion and invests mainly in the financial and services sectors, which together make up almost half of the company’s total asset allocations, and also invests in the technology, health care, energy, consumer noncyclical, basic materials, transportation, and consumer cyclical sectors, among others to a lesser degree, in order of decreasing amount allocated. The OTPP currently serves over 311,000 members, including 182,000 elementary and secondary school teachers, 129,000 pensioners, and 70,000 inactive members, paying out an annual $5.3 billion.