Ontario teachers pension fund - How to run a pension fund

[stephen500]

In the late 70s when I became a member of the Post office Superannuation scheme (Our pension plan) we had a mix of investments. We owned properties or had shares in properties, such as the Whitgift Centre (A shopping centre in Croydon). If we had maintained a wider spread of risks, then it is without doubt that our returns would have been much higher, then the current bunker mentality of little risk and little return. Here is an example of a pension fund with mixed investments. The Ontario teacher's pension fund. It has from time to time, had it's problems. But it does so from a position of strength. It part owns our National lottery, 100% of Bristol Airport and has assets of $175 billion dollars.
It appears a shinning example of how to run a pension fund.
https://en.wikipedia.org/wiki/Ontario_T ... nsion_Plan" onclick="window.open(this.href);return false;
https://www.otpp.com/home" onclick="window.open(this.href);return false;

[mark.cup]

Just shows with a bit of vision what can be done! Yet Royal Mail sell land off rather than develop it themselves... Quick buck mentality

[stephen500]

A simple example, if RMPP had bought my house in 1987 it would have paid £22000 and in 2017 could now sell it for £200,000. Nearly 10 times profit (if paid for in 1987 with cash). It could have done that with lots of properties, whether residential or commercial.

[NWpostie]

If Gordon Brown hadn't tried to tax the pension surplus we wouldn't be in the position we're in now.

[heapsy]

If Gordon Brown hadn't tried to tax the pension surplus we wouldn't be in the position we're in now.

Taxing the dividends of the shares held within the pension funds was bad enough. And this from a party that claims to support the ordinary working man / woman. How people sleep at night after voting for them I will never know. Shafting the workers pensions by stealth.

[jetblack]

Our pension trustees use our money to lend it to the government. Thats right - our pension fund is up s**t creek cos we are lending to the Govt. for peanuts. The Government pays a pittance in interest (as do corporate bonds). Apart from this being low risk I can think of no other benefit, from an investment returns angle.
Its good for the Govt. of course - they are desperate to borrow to try to plug the gap left by the financial scandal of 2008, and they can't do it all by magic'ing new money into existence. Its good for the bankers of course as well - they are back on big bonuses.

But what exactly are we getting out of this investment 'strategy' ??