Ontario Teachers’ announces positive 2025 results

• 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 13^th straight year with a strong preliminary funding surplus of $31.2 billion.

TORONTO - Ontario Teachers’ Pension Plan Board (Ontario Teachers’) 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.

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’s 13^th consecutive year being fully funded (meaning plan assets exceed future pension liabilities), underscoring the plan’s long-term financial health and stability.

"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‑year 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,” said Jo Taylor, President & Chief Executive Officer. “Despite 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‑adjusted returns and continuing to deliver excellent service to our members.”

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.

¹ _{All figures are as at December 31, 2025, and denominated in Canadian dollars unless noted.}

² _{Value-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).}

Impact of currency on returns

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’s 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’s proactive management of our exposure to currency markets during the year.

Investment performance

Given the plan’s liabilities stretch decades into the future, results over longer periods are particularly important. Ontario Teachers’ 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.

Portfolio Performance by Asset Class (all figures as at December 31)

³ _{The total-fund net return is calculated after deducting transaction costs, management fees and investment administrative costs. Asset-class returns are calculated before deducting investment administrative costs.}

The table below summarizes Ontario Teachers' portfolio mix by asset class for the current and previous year.

Portfolio Performance by Asset Class (all figures as at December 31)

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.}

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)}

Investment highlights

Ontario Teachers’ manages approximately 75% of its assets internally, with a focus on deploying capital into a mix of active and passive strategies around the world.

Transaction highlights in 2025 include:

• 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’s nodal agency for national highway development.
• Participated in Quantexa’s Series F investment round, supporting the company’s growth in decision intelligence solutions.
• Led StackAdapt’s latest funding round, supporting the Canada-based company’s growth as a leading programmatic advertising platform.

Realizations from 2025 include:

• 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’s 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.  

Corporate news

• Chris Goodsir and Bill Butt were appointed to Ontario Teachers’ Pension Plan’s board by the Ontario Teachers’ 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’ 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’ global strategy, portfolios and asset management activities.
• Constructively engaged with the federal government to discuss “nation building” projects and the Ontario government to consider large investments meant to bolster economic development. Discussions on investments from Ontario Teachers’ in these projects are ongoing. 
• Achieved 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 (“CTA”) 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.

Note to Editors: To read our annual report, please click here.

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.}

About Ontario Teachers’

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’ 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 otpp.com and follow us on LinkedIn. 

Contact

Dan Madge
Ontario Teachers' Pension Plan
Phone: +1 416-419-1437
Email: media@otpp.com

Forward-looking statements

This press release contains forward-looking information and statements (“forward-looking statements”) that are intended to enhance the reader’s ability to assess the future financial and business performance of Ontario Teachers’.

The forward-looking statements include all information and statements regarding Ontario Teachers’ current beliefs, targets, intentions, plans, and expectations concerning its objectives, future performance, strategies, and financial results, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking statements  often but not always use words such as “trend,” “potential,” “opportunity,” “believe,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “contribute”, “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.

Because the forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond Ontario Teachers’ control or are subject to change, actual results or events could differ materially from those expressed or implied. Although Ontario Teachers’ believes that the estimates and assumptions inherent in the forward-looking information and statements are reasonable, such information and statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such information or statements due to their inherent uncertainty.

Ontario Teachers’ forward-looking statements speak only as of the date of this annual report or as of the date they are made and should be regarded solely as Ontario Teachers’ current plans, estimates and beliefs. Ontario Teachers’ does not intend or undertake to publicly update such statements to reflect new information, future events, and changes in circumstances or for any other reason, except as required by law.

Cautionary Statement

Addressing climate change will require a global effort involving governments, business, and civil society. We strive to contribute to this effort through our multi-faceted climate strategy.  In connection with this strategy, we have made certain commitments and set certain goals and targets (“Targets”). In establishing our Targets, we relied on various laws, guidelines, taxonomies, methodologies, frameworks, market practices and other standards (collectively, “Standards”). Given the complex and evolving nature of the global response to climate change, these Standards may change over time.   If any Standards change significantly, we may need to update our Targets or our progress toward these Targets, while still contributing to the global effort to address climate change.  We also made assumptions and estimates in good faith in establishing our Targets. Although we believe these assumptions and estimates are reasonable, they may prove incorrect or inaccurate for reasons we cannot foresee or predict. These assumptions and estimates relate to, among other things, the growth, outlook, and strategy of our business, the ability of our portfolio companies to make changes, the feasibility of third-party decarbonization and energy transition scenarios, the development and availability of low-carbon technologies, economic and political trends, stakeholder participation, and the evolution of legal regimes and climate related policies. If any of these assumptions prove incorrect or inaccurate, we may be unable to achieve our Targets and we may need to revisit them. 

To monitor and report on our progress toward our Targets, we rely on data obtained from our portfolio companies and other third-party sources. Although we believe these sources are reliable, we have not independently verified this data, or assessed the assumptions underlying such data, and cannot guarantee its accuracy or completeness. We also seek to enhance the accuracy of this data through independent limited assurance engagements. The data may be of varying quality or usefulness and may change over time as Standards evolve. These factors could impact our Targets and our ability to achieve them.