Canada’s TTC Pension Plan (TTCPP) offers a valuable lesson in investment strategy and cost management for pension plans seeking autonomy. TTCPP’s decision not to merge with OMERS showcased a well-considered governance and financial health, setting the tone for its independent journey. The plan’s leadership, under an independent CEO, Andy Greene, worked diligently with sponsors to structure the spin-off entity, resulting in its successful launch in January 2019.
TTCPP’s commitment to reducing consultant dependency and growing internal expertise demonstrates a strategic approach to investment decisions. The plan’s hedge fund allocation will focuses on a more concentrated portfolio going forward to reap the benefits of diversification across asset classes and geography while keeping an eye on cost-effectiveness.
Cost management remains a priority, with Greene’s efforts to renegotiate fees and reduce the number of managers. Leveraging to invest in market-neutral hedge fund strategies is another cost-effective move. The plan shifts allocations based on market conditions, focusing on private equity and public credit, while prudently lengthening bond durations to harness higher yields.
Greene’s pragmatic approach, emphasising simplicity and cost consciousness and avoiding trendy assets like Bitcoin, highlights TTCPP’s commitment to a focused investment strategy.