Why Canada’s Teachers Run an Investment Firm in Singapore

Summary

The video explores the Ontario Teachers' Pension Plan (OTPP), one of the largest institutional investors in the world. Originally created to provide retirement income for teachers in Ontario, OTPP has evolved into a global powerhouse, directly investing in infrastructure, businesses, and assets like airports and water plants. This 'Canadian Model' avoids third-party fees by handling its investments internally. The pension plan's success stems from smart hiring, international expansion, and innovative strategies that outperform peers, benefitting Ontario's teachers while owning assets worldwide.

Takeaways

• 🏬 The Ontario Teachers’ Pension Plan owns a diverse portfolio of assets, including the Toronto Eaton Centre, Sydney Desalination Plant, and Brussels Airport.
• 💧 The Sydney Desalination Plant is a critical infrastructure capable of servicing water needs for 1.5 million residents.
• ✈️ The pension plan's ownership extends to five airports, reflecting its broad investment strategy.
• 💼 The Ontario Teachers’ Pension Plan is a pension fund for teachers in Ontario, Canada, but it also operates like a hedge fund or private equity group, managing its own investments.
• 📈 The 'Canadian Model' of pension investing involves direct investing, focusing on long-term assets like infrastructure, and hiring top talent with competitive compensation.
• 💼 The plan's investment strategy includes buying out companies or physical assets, particularly infrastructure, which aligns with the long-term nature of pensions.
• 🌏 The pension plan has an international presence, with an office in Singapore, to directly manage investments in Southeast Asia and Oceania.
• 💰 The Ontario Teachers’ Pension Plan is fully funded and has outperformed many of its peers, setting a model for other Canadian public pensions.
• 🏆 It has become one of the largest institutional investors globally, partnering with organizations like the World Economic Forum.
• 📚 The video script humorously points out that the pension plan's success means teachers might have more money and potentially less reliance on the narrator for their job.

Q & A

What is the Toronto Eaton Centre known for?

The Toronto Eaton Centre is known for being one of the busiest shopping malls in North America, with over 230 stores and restaurants.

What is the capacity of the Sydney Desalination Plant?

The Sydney Desalination Plant has the capacity to service 1.5 million residents' water needs.

Why is the Brussels Airport mentioned in the script?

The Brussels Airport is mentioned because it was featured in Season three of 'Jet Lag: The Game', where a character named Ben was caught there.

What do the Toronto Eaton Centre, Sydney Desalination Plant, and Brussels Airport have in common?

They are all owned, either completely or primarily, by the Ontario Teachers' Pension Plan.

What is the Ontario Teachers' Pension Plan and who does it serve?

The Ontario Teachers' Pension Plan is a pension fund for teachers in the Canadian province of Ontario.

How does the Ontario Teachers' Pension Plan differ from a typical pension plan?

The Ontario Teachers' Pension Plan differs in that it operates more like a hedge fund or private equity group, with its own investing team, thus avoiding external management fees.

What is the Canadian Model of pension investing?

The Canadian Model involves direct investing, a focus on buying out companies or physical assets like infrastructure, and hiring talented individuals with competitive compensation.

Why does the Ontario Teachers' Pension Plan invest in infrastructure?

Infrastructure investments align well with the long-term nature of pensions, providing stable returns over the long term.

How does the Ontario Teachers' Pension Plan's investment strategy compare to other pension plans?

The Ontario Teachers' Pension Plan's strategy is more aggressive, focusing on direct investments and complete ownership of companies or assets, rather than just stocks and bonds.

What is the significance of the Ontario Teachers' Pension Plan being fully funded?

Being fully funded means the Ontario Teachers' Pension Plan has enough assets to meet its future pension obligations, ensuring financial security for its beneficiaries.

Why does the script mention the use of a VPN for internet users?

The script mentions VPNs to highlight their utility for accessing region-restricted content and maintaining a consistent online experience while traveling.