The Plan’s assets are divided into 2 portfolios with different goals. These portfolios contain asset classes that are chosen to achieve the objectives of the total portfolio.
Total portfolio
6.6%
10-year annualized return |
$1.9B
total added value over 10 years |
Year
|
Return
|
Benchmark indexe
|
2024
| 7.8% |
7.5%
|
2023
|
9.7%
| 9.4% |
2022
|
-16.5%
| -18.7% |
2021
| 6.7%
| 4.3% |
2020
|
14.5%
|
13.1% |
2019
|
17.4%
| 17.4% |
|
2018 |
1.3%
| -0.2% |
|
2017 |
12.7%
|
10.2% |
2016
|
7.9%
| 5.3% |
Performance portfolio
Strategy
The performance portfolio aims to help the Plan achieve its long-term target return so that we can maintain contributions at a reasonable level for plan members and employers.
Result
The portfolio reached its objective by delivering a return of 12.8% for its long-term target of 6.6%. This performance is due in large part to the public equity and private equity portfolios, which benefited from US economic resilience and the strong US dollar. In contrast, real estate asset revaluations and issues specific to certain infrastructure sectors limited portfolio gains.
Over the longer term, the 10-year annualized return was 11.0%. All asset classes posted long-term annualized returns that were higher than their respective target returns, helping the DGPP preserve its financial health.
In 2024, performance was slightly below the benchmark indexes. The portfolio posted a negative added value of -0.9%. This is due in part to a challenging environment for diversified public equity strategies, compared to indexes with significant concentration—particularly in large-cap equities in the US tech sector. However, the added value of 2.7% over 10 years remains excellent.
11.0%
10-year annualized return |
$1.4B
added value over 10 years |
Matching portfolio
Strategy
The objective of the matching portfolio is to protect the Plan's financial health against changes in interest rates.
Result
In 2024, the DGPP maintained its excellent financial position despite the fact that the long-term rates at the end of the year were slightly higher than at the start of the year. This resulted in a slightly negative return on the matching portfolio if we factor in the financing cost of the bond overlay.
Although the strategy may increase volatility of returns, it protects and strengthens the Plan’s financial position. The strategy also ensures that contributions remain stable, guarantees that the Plan can pay out pensions at any time and helps the Plan stick to the organization’s desired risk level. Generally speaking, the matching portfolio is a pool of bonds and other fixed-income securities. These securities can be managed in the portfolio itself (“fixed-income portfolio”) or through strategies to overlay the asset portfolio (“bond overlay”).
At the end of 2024, the bond overlay portfolio was worth $6.1 billion. We performed several hedge ratio optimization transactions to maintain a good level of protection throughout the year. These transactions helped maintain the Plan’s excellent financial health.