Ontario Teachers' Pension Plan's 2025 return rate is 6.7%, private equity sector under pressure

Investing.com - The Ontario Teachers’ Pension Plan Board announced on Tuesday that its net assets reached CAD 279.4 billion in 2025, up from CAD 266.3 billion the previous year, with a total fund net return of 6.7%.

The pension fund generated CAD 18.5 billion in investment income this year, along with member and employer contributions of CAD 4.1 billion. These earnings were partially offset by CAD 8.5 billion in benefit payments and CAD 1 billion in administrative expenses.

The fund’s performance lagged its benchmark return of 11.7% by 5.0 percentage points, resulting in a loss of CAD 12 billion in value appreciation. Despite strong performance in risk growth investments, public equities, gold, and credit sectors, this gap persisted.

President and CEO Jo Taylor stated, “Our 2025 performance reflects the resilience of a diversified investment portfolio and the rigorous approach we take in managing the plan on behalf of our members.”

Private equity and real estate holdings faced headwinds during the year. The fund implemented valuation adjustments at year-end to reflect current market conditions, which affected overall performance.

The Ontario Teachers’ Pension Plan reported a ten-year annualized net return of 6.8%, with a cumulative return of 9.2% since inception.

The plan has maintained full funding status for 13 consecutive years, with an estimated surplus of CAD 31.2 billion as of January 1, 2026. This corresponds to a funding ratio of 111%, higher than last year’s 110% and the surplus of CAD 29.1 billion in 2024.

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