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.
TORONTO, March 10, 2026 /CNW/ - 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 13th 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.
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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.
Time period
One-year
Five-year
10-year
Since inception
Total-fund net return
6.7 %
6.6 %
6.8 %
9.2 %
The table below summarizes Ontario Teachers' investment returns and related benchmark returns by investment asset class for the current and previous year.
Portfolio Performance by Asset Class (all figures as at December 31)
2025
2024
Fund returns (%)3
Actual
Benchmark
Actual
Benchmark
Equity
Public equity
15.0
13.9
23.2
25.8
Private equity
(5.3)
18.0
11.7
23.7
Venture growth
30.2
18.5
25.8
29.2
6.1
16.7
16.7
24.8
Fixed income
2.6
2.6
4.8
4.8
Inflation sensitive
Commodities
27.0
27.0
25.2
25.2
Natural resources
