Achieved a one-year total-fund net return of 6.7%.Strong returns across venture growth, public equity, gold and credit.Underperformed the 2025 benchmark return of 11.7% by 5.0%, resulting in negative value add of $12.0 billion.Delivered a ten-year annualized total-fund net return of 6.8% and return since inception of 9.2%.Fully funded for the 13th straight year with a strong preliminary funding surplus of $31.2 billion.<\/p>\n
TORONTO – Ontario Teachers\u2019 Pension Plan Board (Ontario Teachers\u2019) today announced a one-year total-fund net return of 6.7% for the year ended December 31, 20251, compared to a 9.4% return in 2024. Net assets grew to $279.4 billion, up from $266.3 billion in 2024. Investment income of $18.5 billion and member and employer contributions of $4.1 billion for the year were partially offset by benefits paid of $8.5 billion and administrative expenses of $1.0 billion.<\/p>\n
The plan is fully funded as at January 1, 2026, with a $31.2 billion preliminary funding surplus, compared to a funding surplus of $29.1 billion last year. This equates to a funding ratio of 111%, up from 110% in the prior year. This marks the plan\u2019s 13th consecutive year being fully funded (meaning plan assets exceed future pension liabilities), underscoring the plan\u2019s long-term financial health and stability.<\/p>\n
“Our 2025 results reflect the resilience of our diversified portfolio and the disciplined approach we take to managing the plan on behalf of our members. We remain fully funded and delivered a one\u2011year net return of 6.7%, supported by strong performance from gold and our venture growth and public equities asset classes. Our private equity and real estate teams had a more challenging year given broad sector headwinds. We responded with disciplined year-end valuation adjustments to reflect current market conditions, which weighed on performance,\u201d said Jo Taylor, President & Chief Executive Officer. \u201cDespite the uncertain environment, our investment business delivered strong dollars earned and was able to successfully realize some key assets while proactively working to address challenging areas of the portfolio. Moving forward, our focus is on maintaining our sound funding position by delivering strong risk\u2011adjusted returns and continuing to deliver excellent service to our members.\u201d<\/p>\n
While delivering strong investment income, the Plan underperformed relative to the benchmark return of 11.7% by 5.0%, or $12.0 billion in negative value add2. The benchmark underperformance was driven by several factors including continued robust performance in our public market-linked benchmarks, as well as constrained performance of certain assets particularly the private equity, infrastructure and real estate asset classes.<\/p>\n
1\u00a0All figures are as at December 31, 2025, and denominated in Canadian dollars unless noted.<\/p>\n
2\u00a0Value-add is the amount of return in excess of (below) benchmarks after deducting management fees, transaction costs and administrative costs allocated to the active programs (includes annual incentives but does not include long-term incentives).<\/p>\n
Impact of currency on returns<\/p>\n
In 2025, the fund experienced a foreign currency loss of $1.2 billion as assets denominated in foreign currencies depreciated in value when converted back into Canadian dollars. This was primarily driven by the depreciation of the U.S. dollar compared to the Canadian dollar. The fund\u2019s net exposure to the U.S. dollar is significantly larger than any other foreign currency. The negative impact was significantly reduced thanks to the fund\u2019s proactive management of our exposure to currency markets during the year.<\/p>\n
Investment performance<\/p>\n
Given the plan\u2019s liabilities stretch decades into the future, results over longer periods are particularly important. Ontario Teachers\u2019 has delivered an annualized total-fund net return of 9.2% since inception in 1990, and five- and 10-year annualized total-fund net returns of 6.6% and 6.8%, respectively.<\/p>\n
Time Period\u00a0One-yearFive-year\u00a010-yearSince InceptionTotal-fund net return6.7%6.6%6.8%9.2%<\/p>\n
\u00a0<\/p>\n
Portfolio Performance by Asset Class (all figures as at December 31)<\/p>\n
Fund returns (%)3ActualBenchmarkActualBenchmark\u00a02025202520242024Equity\u00a0\u00a0\u00a0\u00a0Public equity15.013.923.225.8Private equity(5.3)18.011.723.7Venture growth30.218.525.829.2\u00a06.116.716.724.8\u00a0\u00a0\u00a0\u00a0\u00a0Fixed income2.62.64.84.8\u00a0\u00a0\u00a0\u00a0\u00a0Inflation sensitive\u00a0\u00a0\u00a0\u00a0Commodities27.027.025.225.2Natural resources1.80.013.315.0Inflation hedge(4.7)(4.7)9.89.8\u00a013.613.218.619.1Real assets\u00a0\u00a0\u00a0\u00a0Real estate(3.1)2.2(0.7)5.0Infrastructure1.87.89.18.5\u00a0(0.4)5.34.97.0\u00a0\u00a0\u00a0\u00a0\u00a0Credit5.84.517.216.8Total-fund net return6.711.79.412.9<\/p>\n
The table below summarizes Ontario Teachers’ portfolio mix by asset class for the current and previous year.<\/p>\n
Portfolio Performance by Asset Class (all figures as at December 31)<\/p>\n
Asset Class$ billions%$ billions%\u00a02025202520242024Equity\u00a0\u00a0\u00a0\u00a0Public equity50.018%37.414%Private equity50.819%60.423%Venture growth15.36%10.44%\u00a0116.143%108.241%\u00a0\u00a0\u00a0\u00a0\u00a0Fixed income61.823%78.030%\u00a0\u00a0\u00a0\u00a0\u00a0Inflation sensitive\u00a0\u00a0\u00a0\u00a0Commodities32.112%28.911%Natural resources12.14%12.55%Inflation hedge11.9\u00a04%12.65%\u00a056.120%54.021%Real assets\u00a0\u00a0\u00a0\u00a0Real estate27.910%29.411%Infrastructure34.513%43.217%\u00a062.423%72.628%\u00a0\u00a0\u00a0\u00a0\u00a0Credit38.314%37.214%Absolute return strategies25.29%24.09%Funding and other4(87.3)(32%)(113.1)(43%)Net investments5272.6100%260.9100%<\/p>\n
4 Includes funding for investments (term debt, bond repurchase agreements, implied funding from derivatives, unsecured funding and liquidity reserves) and overlay strategies that manage the foreign exchange risk for the total fund.<\/p>\n
5 Comprises investments less investment-related liabilities. Total net assets of $279.4 billion at December 31, 2025 (2024 – $266.3 billion) include net investments and other net assets and liabilities of $6.8 billion (2024 – $5.4 billion)<\/p>\n
Investment highlights<\/p>\n
Ontario Teachers\u2019 manages approximately 75% of its assets internally, with a focus on deploying capital into a mix of active and passive strategies around the world.<\/p>\n
Transaction highlights in 2025 include:<\/p>\n
Participated in the Series F funding round of Anthropic, the AI safety and research company behind Claude.Invested in Darwinbox, a leading cloud-based human resources technology provider in Asia, as part of their latest funding round.Acquired Donte Group, a leading dental care platform in Europe, to support growth and innovation in healthcare services.Acquired a prime logistics real estate portfolio in Sweden and Denmark alongside partner Fokus Nordic.Agreed to acquire our first residential real estate asset in Sweden through a new partnership with Gordion.Invested in Grafana Labs, a global leader in open-source observability and monitoring solutions, as part of a funding round to accelerate global expansion.Completed our fourth investment into National Highways Infrastructure Trust (NHIT), the Government of India\u2019s nodal agency for national highway development.Participated in Quantexa\u2019s Series F investment round, supporting the company\u2019s growth in decision intelligence solutions.Led StackAdapt\u2019s latest funding round, supporting the Canada-based company\u2019s growth as a leading programmatic advertising platform.<\/p>\n
Realizations from 2025 include:<\/p>\n
Completed the sale of our stakes in Copenhagen, Brussels, Birmingham, Bristol, and London City Airports.Reached an agreement to sell Amica Senior Lifestyles, a leading provider of premium senior living residences in Canada.Partnered with Ethos Capital, BCI and White Mountains alongside BroadStreet to drive the next chapter of growth.Completed the sale of our stake in Diot-Siaci to Ardian, marking an exit from a leading European insurance brokerage group.Reached an agreement to sell our remaining stake in future free cash flow from New Gold\u2019s New Afton Mine.Completed the sale of Sahyadri Hospitals, a leading healthcare network in India.Completed the sale of our majority stake in Sydney Desalination Plant to Utilities Trust of Australia, supporting sustainable water infrastructure in Australia.\u00a0\u00a0<\/p>\n
Corporate news<\/p>\n
Chris Goodsir and Bill Butt were appointed to Ontario Teachers\u2019 Pension Plan\u2019s board by the Ontario Teachers\u2019 Federation, with terms commencing January 1, 2026, replacing Gene Lewis and Patti Croft respectively.Terry Hickey was appointed as Chief Technology Officer to oversee Ontario Teachers\u2019 enterprise technology activities globally.Christopher Metrakos, Dale Burgess and Jenny Hammarlund were appointed Executive Managing Directors for Infrastructure & Natural Resources, Equities, and Real Estate respectively, each responsible for guiding their teams\u2019 global strategy, portfolios and asset management activities.Constructively engaged with the federal government to discuss \u201cnation building\u201d projects and the Ontario government to consider large investments meant to bolster economic development. Discussions on investments from Ontario Teachers\u2019 in these projects are ongoing.\u00a0Achieved a 50% reduction of portfolio carbon emissions intensity in 2025 compared to our 2019 baseline, exceeding our 2025 emissions intensity target.Subsequent to year-end, published the 2026-2030 Climate Strategy, which introduced a 2030 target of $70 billion in Climate Transition Aligned (\u201cCTA\u201d) assets, encompassing private market investments in companies that are decarbonizing their operations and those enabling the global energy transition. Over the next five years, our goal is to double our CTA assets from their approximate value of $35 billion6.<\/p>\n
Note to Editors: To read our annual report, please click here.<\/a><\/p>\n 6 As at June 30, 2025, Ontario Teachers’ had an estimated $35 billion in the Paris Aligned Reduction Target and Green Assets programs, which is being used as a proxy for our CTA assets.<\/p>\n About Ontario Teachers\u2019<\/p>\n Ontario Teachers’ Pension Plan Board (Ontario Teachers’) is a global investor with net assets of $279.4 billion as at December 31, 2025. Ontario Teachers\u2019 is a fully funded defined benefit pension plan, and it invests in a broad array of asset classes to deliver retirement security for 346,000 working members and pensioners. For more information, visit\u00a0otpp.com<\/a>\u00a0and follow us on\u00a0LinkedIn<\/a>.\u00a0<\/p>\n Contact<\/p>\n