One of Canada's largest DB pension plans reports $269.6B in assets, positive returns amid mixed private markets
The Ontario Teachers’ Pension Plan Board (Ontario Teachers’ or OTTP) posted steady investment gains in the first half of 2025, navigating uneven market conditions with strong performance in public assets, particularly gold, offsetting weaker results in private markets.
As of June 30, 2025, net assets stood at $269.6 billion, up $3.3 billion from year-end. The plan recorded a six-month total-fund net return of 2.1 per cent, translating to $6.0 billion in net investment income, and a 12-month return of 7.1 per cent.
“The results for the first half of 2025 show the ability of our investment portfolio to generate a positive return while maintaining a cautious position on risk given prevailing market conditions,” said Jo Taylor, president and CEO at Ontario Teachers'. “The total fund return was predominantly driven by our public assets, particularly gold. Our private assets were generally flat to negative in the period reflecting a challenging environment in those asset classes at present.”
The fund’s asset mix showed notable adjustments since December 2024, with allocations to public, private and venture growth equity declining from 41 per cent to 37 per cent, and infrastructure falling from 17 per cent to 13 per cent. Fixed income also declined to 24 per cent from 30 per cent, while commodities and natural resources remained stable at 20 per cent and 21 per cent, respectively.
As of mid-2025, the portfolio included $97.5 billion in equities (public, private, and venture growth), $63.9 billion in fixed income, $53.0 billion in inflation-sensitive assets, including commodities and natural resources, $64.1 billion in real assets, like real estate and infrastructure, $35.6 billion in credit strategies and $25.6 billion in absolute return strategies.
“Given the plan's liabilities stretch decades into the future, results over longer periods are important. Ontario Teachers' had an annualized total-fund net return of 9.2 per cent since inception in 1990. The five- and 10-year annualized net returns were 7.5 per cent and 6.9 per cent, respectively,” said the release.
The also plan reported a preliminary funding surplus of $29.1 billion as of January 1, 2025, marking its 12th consecutive year of full funding. The co-sponsors - the Ontario Teachers’ Federation and the Government of Ontario – also announced they will file the latest valuation with regulators, designating the surplus as a contingency reserve.
Looking to the remainder of 2025, Taylor emphasized that the fund’s investment teams will focus on generating returns while supporting portfolio companies in value creation.
