Building the Total Portfolio at Ontario Teachers – Stephen McLennan (EP.518)

OTPP manages its $300B, 111%-funded pension via flexible top-down asset allocation rather than rigid reference-portfolio weights, staying neutral amid AI uncertainty.

• Total portfolio approach (TPA): OTPP's Total Fund Management team sets top-down asset mix flexibly rather than following a rigid reference portfolio, letting weights deviate when conditions warrant.
• Fully funded at 111%: This surplus, plus a single beneficiary cohort of 346,000 teachers, lets OTPP avoid forced selling and target a 7% nominal risk-adjusted return consistently.

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