2013 Annual Report. Graphs, charts and tables. January 1, 2013, to December 31, TPP AR Graphs Tables

Transcription

1 2013 Annual Report Graphs, charts and tables January 1, 2013, to December 31, TPP AR Graphs Tables

2 Contents Five-year financial summary...1 Contributions...2 Contribution revenue....2 Number of termination and refund benefits paid...2 Value of termination and refund benefits paid....2 Number of purchases of service....3 Value of purchases of service...3 Actuarial valuation history Investment performance...4 Investment asset mix and performance...5 Investment portfolio...6 Top ten holdings...7 Investment holdings....8 Bonds...8 Canadian equities...8 Global equities...8 Canadian equities, by sector...8 Global equities, by sector...8 Emerging markets equities, by sector...9 Equities, by country...9 Domestic real estate, by type...9 Real estate, by location...9 Contribution rates as a percentage of salary...10 Number of members...10 Membership growth, active vs. retired...10 Membership profile...10 Active members, by gender Active members, by age...10 Pensions New pensions, by type...11 Average value of new pensions...11 New pensions by age at retirement...12 Percentage of new pension recipients, by age at retirement...12 Percentage of new pension recipients, by years of service Average and median pensions in pay...13 Board of Trustees member remuneration...13 Graphs, charts and tables Contents

3 Five-year financial summary $ Millions For the year ended December Increase in assets Investment income $ 2,684 $ 1,778 $ 532 $ 1,465 $ 1,553 Contributions Members Employers Transfers from other plans Total increase in assets 3,402 2,458 1,219 2,100 2,145 Decrease in assets Pension benefits Termination and refund benefits Transfers to other plans Retired member group benefits Investment and administration costs* Total decrease in assets 1,056 1, Increase in net assets 2,346 1, ,190 1,278 Net assets available for benefits at beginning of year 18,348 16,899 16,649 15,459 14,181 Net assets available for benefits at end of year $20,694 $18,348 $16,899 $16,649 $15,459 Investment and administration costs as a percentage of net assets (%) Investment management* Benefits administation * External investment management costs incurred in the investment pooled funds by wholly owned corporations of $12.1 million (2012 $13.1 million; 2011 $8.6 million; 2010 $7.5 million; 2009 $6.6 millon) reduce investment income and are not included in investment and administration costs. They are included in investment management costs as a percentage of net assets. Graphs, charts and tables 1

4 Contributions including purchases of service year ended December 31 $ Millions Member Employer Contribution revenue year ended December 31, 2013 $ Millions Transfers from other plans $7.2 1% Member contributions $ % Employer contributions $ % Number of termination and refund benefits* paid** year ended December * A member who terminates from the plan, if eligible, may choose to receive a refund or termination benefit. See the Terminating employment PensionFacts for more information. ** Includes death benefits paid. Value of termination and refund benefits* paid** year ended December 31 $ Millions * A member who terminates from the plan, if eligible, may choose to receive a refund or termination benefit. See the Terminating employment PensionFacts for more information. ** Includes death benefits paid. Graphs, charts and tables 2

5 Number of purchases of service year ended December Value of purchases of service year ended December 31 $ Thousands 7, , Leaves of absence* Arrears** * A leave of absence is an employer-approved absence from work. ** Arrears occur when contributions should have been made on a member's behalf but were not. Leaves of absence* Arrears** * A leave of absence is an employer-approved absence from work. ** Arrears occur when contributions should have been made on a member's behalf but were not. Actuarial valuation history as at December 31 $ Millions Basic pension benefits unfunded liability Total assets* $19,836 $18,258 $14,649 Total liabilities 20,691 18,735 15,516 Unfunded liability* $ (855) $ (477) $ (867) Funding ratio (assets/liabilities) * Calculated on an entry-age basis which is used to determine future contribution rates. Graphs, charts and tables 3

6 Investment performance year ended December 31 Market value rates of return (All values %) Rate of return Performance benchmarks Annual rates Five-year annualized rates* Ten-year annualized rates annual rate by investment category Short term DEX 91 day T-Bill Money market DEX 91 day T-Bill Bonds DEX ShortTerm Government Bond Index Bonds (1.2) (1.2) DEX Universe Bond Index Universe bonds (1.2) (1.2) DEX Universe Bond Index Global government bonds (1.2) 0.4 JP Morgan Hedged Index Real return bonds (13.5) (13.1) DEX Real Return Bond Overall Index Mortgages Combined Mortgages Benchmark Fixed term DEX ST Bonds + 1% Construction DEX 1 Year T-Bills + 1% Mezzanine DEX 1 Year T-Bills + 2.5% Canadian equities S&P/TSX Composite Active Canadian S&P/TSX Capped Composite Active small cap S&P/TSX Small Cap Indexed S&P/TSX Composite Enhanced S&P/TSX Capped Composite Global equities MSCI World Net ex-canada U.S. actively managed Russell 1000 U.S. indexed S&P 500 Total Return Index U.S. social indexed MSCI KLD 400 Social Index U.S. enhanced Russell1000/S&P 500 Total Return Index U.S. active small cap Russell 2000 Global equities MSCI World Net ex-canada Asia MSCI Pacific Net Europe MSCI Europe Net Index Emerging markets equities MSCI Emerging Markets Net Index Real estate CPI + 4% Private placements 23.8** 32.7** MSCI All Country World Net plus 2% Infrastructure and renewable resources 13.1** 8.0** Nominal 8% * The five-year annualized rate is the net earned rate of the fund. An annualized rate means the rate for a five- or ten-year period converted into the equivalent annual rate. ** The illiquid assets are only valued once per year as of December 31. The rates of return for private placements and infrastructure and renewable resources are preliminary and reflect December 31, 2013, internal rates of return, which is the industry standard for calculating returns for illiquid assets. Performance benchmark indices abbreviations CPI = Consumer Price Index DEX = PC-Bond domestic bond exchange MSCI = Morgan Stanley Capital International S&P = Standard & Poor s S&P/TSX = Standard & Poor s/toronto Stock Exchange Equity or Capped Equity (Source of annual rates: British Columbia Investment Management Corporation) Graphs, charts and tables 4

7 Investment asset mix and performance Approved Target asset mix Actual asset mix Rate of Performance (All values %) range market value market value return benchmark Fixed income Short term Mortgages Nominal bonds (1.2) (1.2) Real return bonds (13.5) (13.1) (2.3) (2.4) Public equity Canadian equities Global equities Emerging markets equities Real estate Private placements* * 32.7* Infrastructure and renewable resources (IRR)* * 8.0* All weather fund** ** ** Total asset mix * The illiquid assets are only valued once per year as of December 31. The rates of return for private placements and infrastructure and renewable resources are preliminary and reflect December 31, 2013, internal rates of return, which is the industry standard for calculating returns for illiquid assets. ** The plan invested in the all weather fund October 31, As a result there are no annual returns related to this asset class for the year ended December 31, Graphs, charts and tables 5

8 Investment portfolio Investments consist primarily of direct ownership in units of pooled investment portfolios. These are like mutual funds, in that the pension contributions of members and employers are combined and used to buy blocks of investment products rather than individual securities. These units of pooled investment portfolios are valued regularly based on the fair market value of the underlying assets. In the table below, all portfolios are pooled, except for two hundred million (one per cent), which are directly held. Investments held Market value Asset mix ($ Millions) market value (%) Short term Money market $ Bonds (1 5 years) Bonds Global government Nominal 2, Real return bonds , Mortgages Canadian equities Indexed 1, Active 1, , Global equities* Global indexed Global active 1, U.S. indexed 1, U.S. active 1, Europe indexed Europe active Asian indexed Asian active International currency hedging , Emerging markets equities* 1, Real estate 3, Private placements 1, Infrastructure and renewable resources (IRR) Infrastructure 1, Renewable resources , All weather fund* Total investments $20, comparison $ 18,344 * Asset classifications vary from the financial statements for the purpose of performance reporting. Graphs, charts and tables 6

9 Top ten holdings Canadian equities Market value Total Canadian Company ($ Millions) equity (%) Royal Bank of Canada $ The Toronto-Dominion Bank Bank of Nova Scotia Suncor Energy Incorporated Canadian National Railway Company Valeant Pharmaceuticals International Bank of Montreal Manulife Financial Corporation Canadian Natural Resources Limited Enbridge Incorporated Total top 10 $1, Total Canadian equities $3, Global equities Market value Total global Company ($ Millions) equity (%) Google Incorporated $ Apple Incorporated Exxon Mobil Corporation Chinese State Controlled Companies* Roche Holding AG Microsoft Corporation Nestle SA Procter & Gamble Company HSBC Holdings Plc Royal Dutch Shell Plc Total top 10 $ Total global equities $6, Emerging markets equities Market value Total emerging Company ($ Millions) markets equity (%) Chinese State Controlled Companies* $ Samsung Electronics Company Limited Housing Development Finance Corporation Limited British American Tobacco Plc Taiwan Semiconductor Manufacturing SABMiller Plc Vale SA HDFC Bank Limited ITC Limited Fomento Economico Mexicano SAB de CV Total top 10 $ Total emerging markets equities $1, * As of April 1, 2012, company exposures are based on the ultimate parent company exposure regardless of where the security is listed or traded. As a result, the client exposure report shows Chinese state-controlled companies as one of the top exposures because the ultimate parent company for many companies in China is the Chinese government. This approach to aggregating exposure more accurately reflects concentration risk. Graphs, charts and tables 7

10 Investment holdings market value $ Billions All weather fund 0.2 1% Bonds market value Short term 0.4 2% Mortgages 0.6 3% Private placements 1.1 5% Emerging markets equities 1.2 6% Corporate 18% Infrastructure and renewable resources 1.4 7% Bonds % Government 82% Real estate % Canadian equities % Global equities % Canadian equities market value Global equities market value Actively managed 52% Actively managed 52% Indexed 48% Indexed 48% Canadian equities, by sector Global equities, by sector Indexed (%) Actively managed (%) Indexed (%) Actively managed (%) Utilities Utilities Information technology Telecommunication services Health care Materials Consumer staples Energy Telecommunication services Consumer staples Consumer discretionary Health care Industrials Industrials Materials Information technology Energy Consumer discretionary Financials Financials Graphs, charts and tables 8

11 Emerging markets equities, by sector Health care Utilities Industrials Telecommunication services Consumer staples Consumer discretionary Materials Energy Information technology Financials Indexed (%) Actively managed (%) Equities, by country as a percentage of total portfolio (%) Australia 1.1 France Germany Switzerland Japan UK Other developed countries Emerging markets Canada U.S Domestic real estate, by type Real estate, by location Other 0.6% Hospitality 7.5% Retail 8.2% Quebec and Maritimes 5.8% International 7.4% British Columbia 17.0% Industrial 12.6% Residential 23.5% Office 47.6% Ontario 34.6% Prairies 35.2% Graphs, charts and tables 9

12 Contribution rates as a percentage of salary Prior to July 1, 2013 Effective July 1, 2013 Up to YMPE* Over YMPE Up to YMPE* Over YMPE Member 11.20% 12.70% 12.50% 14.00% Employer 13.33% 14.83% 14.63% 16.13% Total 24.53% 27.53% 27.13% 30.13% * Year's maximum pensionable earnings (YMPE) is the limit to earnings on which Canada Pension Plan contributions are made. The 2013 YMPE was $51,100 and will increase to $52,500 in Number of members as at December 31 Membership profile 87,263 87,847 88,595 89,734 90,808 28,521 29,821 30,983 32,162 33,450 Active members 45,271 50% 11,751 11,985 12,122 12,222 12,087 Retired members 33,450 37% 46,991 46,041 45,490 45,350 45, Active 2011 Inactive* 2012 Retired * Members no longer employed, but with money in the plan. Membership growth, active vs. retired Active members, by gender Inactive* members 12,087 13% * Members no longer employed by a plan employer, but with money in the plan. Male 12,098 27% Retired 17.3% Female 33,173 73% Active -3.7% Active members, by age < 40 years 39% 40 < 45 years 16% 45 < 50 years 14% 50 < 55 years 13% 55 < 60 years 12% 60 years 6% Graphs, charts and tables 10

13 Pensions for the year ended December 31 $ Millions New pensions Pension In force at Basic Inflation Total during year terminations end of year pensions paid supplements paid pensions paid , ,450 $810.9 $167.4 $ , , , , , , , , , , , , , , , , , , New pensions, by type for the year ended December 31 Limited LTD to Regular members* Survivor Disability pension Deferred Total , , , , , , , , , , , , , , , , , , , ,598 * Prior to 2012 new limited members were included as part of new regular pensions Average value of new pensions for the year ended December 31, 2013 Total present value Service Total new Average annual Average annual Median annual Average new pensions (years) pensions salary base pension pension present value ($ Millions) < $ 60,000 $ 6,000 $ 4,700 $ 84,000 $ < ,000 15,200 14, , < ,000 23,000 23, , < ,000 30,200 30, , < ,000 38,900 37, , < ,000 48,300 47, , years ,000 48,900 49, , Total 1,651 78,000 35,400 34, ,000 $981.4 Graphs, charts and tables 11

14 New pensions by age at retirement Broken down by years of pensionable service for the year ended December 31, 2013 Service (years) < < < Total < < < < < < Total ,651 Average service Average age 60 Percentage of new pension recipients by age at retirement for the year ended December 31, 2013 Age < % Age 55 < % Percentage of new pension recipients by years of service for the year ended December 31, 2013 < 10 years 115 7% 10 < 15 years 103 6% 15 < 20 years % 20 < 25 years % Age 60 < % Age % 25 < 30 years % 30 < 35 years % 35 years % Graphs, charts and tables 12

15 Average and median pensions in pay Number of pensions 33,450 Average value* $29,959 Median value* $29,666 * Average values reflect the total of all pensions paid for the plan, divided by the total number of recipients in the plan. In the case of median pensions, half of the pensions paid are greater than this amount and half of the recipients receive less. Board of Trustees member remuneration for the year ended December 31, 2013 Board Per diem Annual Chair and Vice Total Board member meetings ($381/meeting) stipend Chair remuneration payments Paid to Joann Cain (chair) 41.0 $ 15, $ 3, $3, $ 23, Joann Cain Linda Watson (vice-chair) , , , , Linda Watson Joan Axford , , , Joan Axford Reggie Bawa , , , Minister of Finance Chung Yan Ip 3, , Chung Yan Ip , , BC Teachers Federation , , , Wayne Jefferson , , , Board of Education (SD75) Harold Krische , , , BC Principals and Vice Principals Association Dale Lauber , , , Dale Lauber Ken Tannar 3, , Ken Tannar , , BC Teachers Federation , , , Brad Underwood , , , Minister of Finance Grand Total $88, $38, $5, $132, Graphs, charts and tables 13