Ontario Teachers' delivers positive returns in first half of 2025

2025 mid-year highlights:

• Net assets at $269.6 billion.
• Six- and 12-month total-fund net returns of 2.1% and 7.1%.
• Long-term returns of 6.9% over ten years and 9.2% since inception.
• Fully funded for the 12^th straight year and plan sponsors have announced they will file a valuation with the regulatory authorities, with the preliminary surplus classified as a contingency reserve.

TORONTO, Aug. 11, 2025 /CNW/ - Ontario Teachers' Pension Plan Board (Ontario Teachers') today announced a total-fund six-month net return of 2.1%, or net investment income of $6.0 billion. The one-year total-fund net return was 7.1%. Net assets are $269.6 billion, up $3.3 billion from year-end (all figures are as at June 30, 2025, and in Canadian dollars, unless noted).

"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. 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," said Jo Taylor, President and Chief Executive Officer. "Looking ahead to the remainder of the year, our investment teams remain focused on delivering returns and working with portfolio companies to create value."

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% since inception in 1990. The five- and 10-year annualized net returns were 7.5% and 6.9%, respectively.

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

Detailed Asset Mix
	As at June 30, 2025		As at Dec. 31, 2024
Asset Class	$ billions	%		$ billions	%
Equity
Public equity	31.5	12 %		37.4	14 %
Private equity	55.4	21 %		60.4	23 %
Venture growth	10.6	4 %		10.4	4 %
	97.5	37 %		108.2	41 %
Fixed income	63.9	24 %		78.0	30 %
Inflation sensitive
Commodities	29.2	11 %		28.9	11 %
Natural resources	11.9	4 %		12.5	5 %
Inflation hedge	11.9	5 %		12.6	5 %
	53.0	20 %		54.0	21 %
Real assets
Real estate	28.8	11 %		29.4	11 %
Infrastructure	35.3	13 %		43.2	17 %
	64.1	24 %		72.6	28 %
Credit	35.6	13 %		37.2	14 %
Absolute return strategies	25.6	10 %		24.0	9 %
Funding and other^1	(74.7)	(28) %		(113.1)	(43) %
Net investments^2	265.0	100 %		260.9	100 %

Funding Status

As of January 1, 2025, the plan was fully funded with a $29.1 billion preliminary funding surplus, underscoring its long-term financial health and sustainability. The plan's sponsors, the Ontario Teachers' Federation (OTF) and the Government of Ontario, publicly announced on June 4, 2025 that the funding valuation will be filed with the regulatory authorities. The co-sponsors elected to classify the preliminary surplus as a contingency reserve.

Corporate News

• Appointed Terry Hickey as Chief Technology Officer to oversee Ontario Teachers' enterprise technology and operations activities globally.
• Welcomed Patti Croft back to the Ontario Teachers' board to serve in an interim capacity up to December 31, 2025. The reappointment followed the resignation of former board member Tim Hodgson, who left to run as a candidate in the federal election.
• Announced Chris Goodsir will join Ontario Teachers' board starting January 1, 2026. Mr. Goodsir was appointed by the OTF and will succeed Gene Lewis, who has served on the board for eight years.

Investment Highlights

Investment highlights from the period include: 

Equities

• Reached an agreement to sell Amica Senior Lifestyles, one of the leading providers of premium senior living residences in Canada, to Welltower Inc.
• Welcomed an equity partner in BroadStreet Partners, a leading North American insurance brokerage company. Ontario Teachers' will maintain a significant co-control stake in the company alongside an investor group led by Ethos Capital.
• Signed an agreement to sell its majority stake in Sahyadri Hospitals Group, one of the largest chain of hospitals in Maharashtra, India, to Manipal Hospitals Group.
• Concluded the acquisition, alongside Nordic Capital, of Max Matthiessen, a leading financial services advisor for pensions, insurance and wealth management companies in the Nordics.

Infrastructure & Natural Resources

• Signed separate agreements to sell ownership stakes in Ontario Teachers' airport portfolio including Copenhagen Airport, Brussels Airport and three UK airports - Birmingham Airport, Bristol Airport and London City Airport.
• Agreed to sell its remaining stake in the New Afton Mine, a high-quality gold and copper mine located near Kamloops, British Columbia, to New Gold Inc.
• Completed a fourth follow-on investment in National Highways Infra Trust, an Infrastructure Investment Trust sponsored by the National Highways Authority of India.

Real Estate

• Signed agreements to acquire two newly built residential properties located in Stockholm, marking its first residential investment in Sweden.
• Acquired a 92,000 sqm prime logistics portfolio across Sweden and Denmark.

Teachers' Venture Growth

• Led a US$235 million funding round in StackAdapt, a leading multi-channel programmatic advertising platform based in Canada.
• Led a US$175 million Series F round in Quantexa, a global leader in decision intelligence solutions for public and private sectors.

About Ontario Teachers'
Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of $269.6 billion as at June 30, 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 343,000 working members and pensioners. For more information, visit otpp.com and follow us on LinkedIn.  

Media Contact:

Dan Madge / Sheena Kasparian
Ontario Teachers' Pension Plan
Email: [email protected] 

Note to editors: Please see attachment:
2025 Interim Financials (PDF)

Forward-Looking Statements

This news release contains forward-looking information and statements that are intended to enhance the reader's ability to assess the future financial and business performance of Ontario Teachers'.   

Because the forward-looking information and 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 information and 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," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" and similar expressions.   

Because the forward-looking information and 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 be materially different. 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 the inherent uncertainty therein. Ontario Teachers' forward-looking information and 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. 

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¹ 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.

² Comprises investments less investment-related liabilities. Total net assets of $269.6 billion as at June 30, 2025 (As at December 31, 2024 – $266.3 billion) include net investments and other net assets and liabilities of $4.6 billion as at June 30, 2025 (As at December 31, 2024 – $5.4 billion).

SOURCE Ontario Teachers' Pension Plan