Long-term figure also show strength of the plan
Ontario Teachers’ Pension Plan Board (Ontario Teachers’) reported a strong performance for the first half of 2025, with net assets climbing to $269.6 billion as of June 30, 2025.
The six-month total-fund net return stood at 2.1%, yielding net investment income of $6.0 billion, while the one-year net return reached 7.1%. Annualized net returns were 6.9% over ten years and 9.2% since inception in 1990, highlighting the plan’s long-term strength.
“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,” noted Jo Taylor, president and CEO. “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 reflected a measured rebalancing during the first half of the year.
Public equity and private equity holdings both saw slight reductions in proportion, with private equity still representing the largest single asset category. Fixed income decreased from year-end levels, while commodities held steady and gold emerged as a notable contributor to returns. Real estate and infrastructure allocations also edged down, reflecting ongoing caution in the private markets.
Credit and absolute return strategies maintained a consistent presence in the portfolio, while funding liabilities decreased significantly from the end of 2024, strengthening the plan’s overall position. This diversified mix, combined with disciplined risk management, helped the fund weather uneven market conditions and deliver solid results.
On the funding front, as of January 1, 2025, the plan remained fully funded with a preliminary surplus of $29.1 billion. The co-sponsors (Ontario Teachers’ Federation and the Government of Ontario) confirmed on June 4, 2025, that they would file the valuation with regulators and classified this surplus as a contingency reserve.
“Looking ahead to the remainder of the year, our investment teams remain focused on delivering returns and working with portfolio companies to create value,” added Taylor.
