How the funds in the Advantages Retirement Plan™ performed in 2021

One of the key benefits of saving in your Advantages Retirement Plan™ is to take advantage of a world-class investment portfolio designed specifically for OMA members and their spouses/common-law partners: BlackRock’s LifePath target date funds. These funds simplify the process of saving for retirement by becoming more conservative as you approach retirement and automatically rebalancing to maintain a globally diversified portfolio of investments. BlackRock’s LifePath funds are used by some of the largest company pension plans in Canada, and were launched in February 2021 for the Advantages Retirement Plan™.   

Understanding rates of return

The rates of return in the table below reflect the returns (net of fees) earned by each of the target date funds during the period from February 22, 2021 – the date the funds were launched – to December 31, 2021.  To confirm which fund you’re invested in, log into your account. When signed in, you can also see how your account value has changed since joining the plan by comparing your total contributions with your account value.  

Rates of return in 2021

Estimated
retirement year
Suggested fund Return in 2021
(Feb. 22-Dec. 31)
2060 BlackRock CDN LifePath 2060 Index NI 13.69%
2055 BlackRock CDN LifePath 2055 Index NI 13.62%
2050 BlackRock CDN LifePath 2050 Index NI 13.45%
2045 BlackRock CDN LifePath 2045 Index NI 12.73%
2040 BlackRock CDN LifePath 2040 Index NI 11.54%
2035 BlackRock CDN LifePath 2035 Index NI 10.12%
2030 BlackRock CDN LifePath 2030 Index NI 8.62%
2025 BlackRock CDN LifePath 2025 Index NI 7.09%
Retired BlackRock CDN LifePath Retirement Index 5.86%

Source: BlackRock as of December 31, 2021. Returns are net of fees.[1] Rates of return are not annualized, since they are new as of February 22, 2021. Past performance is not necessarily indicative of future performance.   

Created for physicians, managed by industry-leading experts

The Advantages Retirement Plan™ target date funds are managed by BlackRock, the firm that pioneered target date funds in 1993. BlackRock is the world’s largest asset manager, with over $10 trillion USD in assets under management, including managing over C$275 billion in assets for Canadian clients. The firm has expertise across all asset classes and investment styles and has always served as a fiduciary to its clients. The plan is overseen by the Advantages Retirement Plan™ Investment Committee, which includes physician members and has a duty to put plan members’ interests first.   

What this means for you

As part of its oversight role, the Investment Committee regularly reviews performance of the funds against an index-based benchmark. The goal of the funds is to closely track this benchmark, and to date, their performance has been consistent with this objective. 

“The Investment Committee is pleased with the performance of the LifePath funds since Blackrock took over their management in February 2021. LifePath funds offer a low fee, well diversified, value-for-money approach that optimizes physicians’ retirement readiness. The funds are keeping pace with the index while providing professional asset allocation across a variety of geographies and asset classes. As we continue to monitor the plan’s investment performance, we aim to ensure that the funds continue to provide members rates of return commensurate with their risk tolerance.” 

–Bernard Morency, Chair, Advantages Retirement Plan™ Investment Committee 

By saving in the Advantages Retirement Plan™, you’re taking a step towards the kind of retirement you envision.   

Have questions or want to learn more?

Email us at info@omainsurance.com  to get in touch with the OMA Insurance team’s retirement specialists:  

Guillermo Nafarrate 
Ontario Central West
guillermo.nafarrate@oma.org 

Yash Khubchandani
Ontario Central East
yash.khubchandani@oma.org

 

[1] We calculate net performance by subtracting from the gross fund performance reported by BlackRock, 0.05% (i.e. 0.6%/12) for every month since inception. For example, in reporting performance from December 31, 2021, we subtract 0.5% – ten months’ worth of fees – from the gross returns.  This calculation does not include the monthly fee of $10/month plus HST. The returns reported do not include any applicable taxes.