Benchmark Performance

The overall effectiveness of ATRF’s managers, asset classes and investment strategies are assessed by comparing the rates of return achieved to the benchmark, as selected by the Board and Investment Committee.  The total-fund benchmark is calculated by aggregating the asset-class benchmark indices, weighted to reflect the fund’s policy asset mix.

Relative returns were disappointing in the past fiscal year as strong performance from internally-managed equity and bond portfolios was more than offset by weak relative performance by several of ATRF’s non-Canadian equity portfolios, as well as the new active currency mandates.  Additionally, ATRF’s asset mix was positioned defensively relative to policy, in response to the significant market turmoil in the first half of the year.  This resulted in the fund lagging the market somewhat during the rapid and sharp recovery which took place in the second half of the year.

The Teachers’ Pension Plan (TPP) fund return fell 1.7% below the benchmark for the fiscal year.  For the five-year period ended August 31, 2009, the return is 0.4% below the benchmark return.  Over 10 years however, the Teachers’ Pension Plan fund rate of return exceeds the benchmark by 0.6%.

For the Private School Teachers’ Pension Plan (PSTPP), the fund return for the past year was 2.0% below benchmark.  Over the past five years, the return is 0.5% below benchmark, while over the 10-year period the fund return exceeds the benchmark by 0.6%