Ontario Teachers’ Pension Plan (OTPP) posted a one-year total-fund net return of 6.7% in 2025, down from a 9.4% return the year prior.
Net assets grew to $279.4 billion in 2025, up from $266.3 billion in 2024. Investment income of $18.5 billion and member and employer contributions of $4.1 billion were partially offset by $8.5 billion of benefits paid and $1 billion in administrative expenses.
The pension plan was fully funded for the 13th year in a row with a surplus of $31.2 billion, or a funding ratio of 111%, similar to 110% in 2024.
The 6.7% return underperformed the benchmark return of 11.7%, resulting in negative value add of $12 billion. The underperformance was driven by robust performance in public market-linked benchmarks and constrained performance in private equity, infrastructure and real estate asset classes, among other factors.
The fund saw a foreign currency loss of $1.2 billion as assets denominated in foreign currencies depreciated in value when converted back into Canadian dollars. The fund’s net exposure to the U.S. dollar is significantly larger than any other foreign currency.
At the same time, the fund experienced strong returns in venture growth (30%), public equity (15%), commodities, including gold (27%) and credit (5.8%). There were negative returns in private equity (-5.3%), inflation hedge (-4.7%) and real estate (-3.1%).
The fund’s composition was led by private equity (19%), public equity (18%) and credit (14%).
About three-quarters of OTPP’s funds are internally managed. In 2025, it participated in Anthropic’s Series F funding round, acquired European dental care platform Donte Group and bought real estate in Sweden and Denmark, among other transactions.