Economy March 10, 2026

Ontario Teachers posts 6.7% net return in 2025 as private asset write-downs weigh on performance

Fund grows to C$279.4 billion but trails benchmark as private equity and real estate valuation adjustments curb gains

By Avery Klein
Ontario Teachers posts 6.7% net return in 2025 as private asset write-downs weigh on performance

Ontario Teachers’ Pension Plan Board reported total net assets of C$279.4 billion for 2025, supported by a 6.7% total-fund net return. The plan recorded C$18.5 billion in investment income and C$4.1 billion in contributions, while paying out C$8.5 billion in benefits and incurring C$1.0 billion in administrative expenses. Performance trailed an 11.7% benchmark, producing a C$12.0 billion negative value add. Private equity and real estate valuation adjustments reduced overall returns even as venture growth, public equity, gold and credit delivered strong results. The fund remains fully funded with a preliminary surplus of C$31.2 billion as of January 1, 2026.

Key Points

  • Net assets increased to C$279.4 billion in 2025 from C$266.3 billion a year earlier, driven by a 6.7% total-fund net return.
  • Investment income totaled C$18.5 billion and contributions were C$4.1 billion; benefits paid were C$8.5 billion and administrative expenses C$1.0 billion.
  • The fund underperformed its 11.7% benchmark by 5.0 percentage points, creating a C$12.0 billion negative value add despite strong returns in venture growth, public equity, gold and credit.

Ontario Teachers' Pension Plan Board reported on Tuesday that its net assets rose to C$279.4 billion in 2025, up from C$266.3 billion the year before, propelled by a total-fund net return of 6.7%.

The plan generated C$18.5 billion of investment income over the year and received C$4.1 billion in member and employer contributions. Those inflows were partly offset by benefit payments of C$8.5 billion and administrative costs of C$1.0 billion.

Despite those gains, the fund underperformed its benchmark, which returned 11.7%, leaving a shortfall of 5.0 percentage points and a negative value add of C$12.0 billion. That shortfall occurred even as several segments delivered strong results, notably venture growth, public equity, gold and credit.

Addressing the results, Jo Taylor, President and Chief Executive Officer, said, "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."

Private equity and real estate holdings presented headwinds during the period. The fund applied year-end valuation adjustments to reflect prevailing market conditions, and those adjustments weighed on total performance.

On longer-term metrics, Ontario Teachers reported a ten-year annualized total-fund net return of 6.8% and a return since inception of 9.2%.

The plan maintained fully funded status for the 13th year in a row, with a preliminary funding surplus of C$31.2 billion as of January 1, 2026. That equates to a funding ratio of 111%, up from 110% the prior year, and compares with a surplus of C$29.1 billion in 2024.


Context and implications

The numbers highlight a balance between realized investment gains and valuation-related reductions in private markets. Strong performance in certain public and credit-oriented pockets was not sufficient to offset the impact of valuation adjustments in private equity and real estate, producing the gap relative to benchmark returns.

While the plan's funding position improved marginally, the report underscores the sensitivity of overall returns to mark-to-market changes in privately held assets and the continued significance of diversified exposure across asset classes.

Risks

  • Private equity and real estate headwinds - valuation adjustments reduced overall returns and are a source of ongoing performance risk for those asset classes.
  • Benchmark underperformance - a material gap versus the 11.7% benchmark resulted in a C$12.0 billion negative value add, highlighting execution and market-timing risks in meeting reference returns.
  • Valuation sensitivity - reliance on year-end valuation adjustments to reflect market conditions indicates continued exposure to mark-to-market fluctuations, particularly in illiquid holdings.

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