Ont. Teachers' Pension Plan sees assets fall more than $21B

The Ontario Teachers' Pension Plan saw its assets retreat to $87.4 billion at the end of 2008 from $108.5 billion a year earlier as the fund was battered by losses on equities and fixed income.

OTPP said its investment return for 2008 was –18 per cent, and underperformed the fund's benchmark return of –9.6 per cent.

"Our investment team fought hard against the downward pressure of the global credit freeze and subsequent stock, bond and real estate market crashes throughout the year; but market forces retained the upper hand at year-end," said Jim Leech, the fund's president and CEO.

"It is small consolation to us that our results are consistent with the average of other large Canadian pension plans," he said.

Last year, the fund lost $12.5 billion on its equity investments, largely due to the slide in global stock market.

In fixed income, the fund dropped $6.7 billion in losses on credit products and hedge funds.

OTPP did turn a positive return of $200 million on infrastructure assets and real-return bonds.