Ontario Teachers Pension Plan: Infrastructure Return of 1.8% vs 7.8% Benchmark (2025)

What we found

The numbers

As of year-end 2025, the Ontario Teachers Pension Plan managed assets under management of $279.4 billion CAD. This figure represents a 4.9% increase from the $266.3 billion CAD reported at year-end 2024. The plan’s one-year total-fund net return for 2025 was 6.7%, a decrease of 2.7 points from the 9.4% return recorded in 2024. Over a longer horizon, the 10-year annualized return stood at 6.8%. Investment income was reported at $18.5 billion for both 2024 and 2025. The plan’s funding status improved to 111% as of January 1, 2026, up from 110% in 2024 and 104.6% in 2023. In its infrastructure segment, the plan achieved a return of 1.8% in 2025, which was 6.0 points below its benchmark of 7.8%. Additionally, US-listed equity positions reported in its Form 13F-HR totaled $15.8 billion USD as of June 30, 2026. [1] [8] [9] [10] [11] [12]

What the plan says it wants

The Ontario Teachers Pension Plan manages $266 billion in assets to support 185,000 members and 158,000 pensioners, totaling 343,000 individuals. The plan makes $8.1 billion in annual payments to retirees, with an average pension of $50,700. Teacher contribution rates are set at 10.4% up to the CPP limit and 12% above that limit as of 2025. An independent board governs the plan with a focus on risk and performance. The investment strategy involves allocating assets globally across diverse asset classes, including public equities, real estate, infrastructure, and private capital. The plan views the shift to cleaner energy as a generational investment opportunity that will reshape economies. Addressing the material risks and opportunities of climate change is considered part of the pension’s mission in delivering retirement security. This includes investing in direct climate solutions such as emissions reductions and managing risks, while also working with portfolio companies to advance decarbonization plans. [5] [8]

What it realized

The Ontario Teachers Pension Plan has realized gains through several significant asset sales. As of 2025, the plan sold its interests in Copenhagen, Brussels, Birmingham, Bristol, and London City Airports. In the same period, it also completed the sale of Amica Senior Lifestyles. Looking ahead to 2026, the plan realized value from the sale of New Gold’s New Afton Mine. Additionally, as of 2026, the plan sold Sahyadri Hospitals and the Sydney Desalination Plant. These transactions represent concrete realizations of capital from the plan’s diverse portfolio. While these sales provide liquidity, the plan’s infrastructure holdings have faced performance challenges. In 2025, the infrastructure segment underperformed its benchmark by 6.0 points. This gap highlights the mixed results of the plan’s infrastructure strategy during that year, contrasting with the successful exits in aviation, healthcare, mining, and water infrastructure sectors. [1] [11]

The people

As of 2024, the Ontario Teachers Pension Plan is led by several senior executives. Bernard Grzinic serves as Executive Managing Director, Capital Markets. He brings over 25 years of experience at Ontario Teachers’ to his role. Steve Saldanha holds the position of Executive Managing Director, Total Fund Management. His background includes over 25 years of expertise, with nearly two decades spent at Ontario Teachers’. Robert Sturgeon is the Senior Managing Director, Global Investment Strategy. His focus is on continuing to advance the investment plan to deliver returns to members. The organization manages significant assets, with net assets reported at 242.5. Within this portfolio, equities assets account for 78.5. These figures reflect the scale of the fund’s operations under the leadership of these key figures. [2] [3]

What the fund says

As of December 31, 2025, the fund reported net assets of $279.4 billion, up from $266.3 billion in 2024. The one-year total-fund net return was 6.7% for the period ending December 31, 2025, compared to 9.4% in 2024. The ten-year annualized total-fund net return stood at 6.8% as of 2025, while the return since inception was 9.2%. In 2025, the fund underperformed its benchmark return of 11.7% by 5.0%. The funding ratio was 111% as of January 1, 2026. Regarding climate strategy, the fund is moving away from an emissions intensity target to focus on climate investment goals and working with portfolio companies to advance decarbonization plans. It views addressing climate change risks and opportunities as part of its mission to deliver retirement security. In its investment strategy, the fund holds a stake in SpaceX, which it first invested in when the company was private. It views SpaceX as a long-term hold rather than a trade to flip at the IPO window, potentially yielding an $11.6B windfall. This position is described as the most successful investment in the fund's history and a case study in long-horizon venture investing. [1] [4] [5] [7]

What the press says

Press coverage highlights a significant financial windfall for the Ontario Teachers' Pension Plan, which is eyeing an $11.6 billion gain from its investment in SpaceX. This potential return stems from an early bet on Elon Musk's rocket company, a move that is about to pay off in a way that pension fund managers rarely get to celebrate. The plan’s initial stake was $306 million. Commentators have noted the irony that while the province of Ontario cancelled its provincial Starlink contract with SpaceX, the pension plan continues to reap massive returns from its equity stake. This divergence highlights how SpaceX's overall financial strength remains largely insulated from regional contract decisions. The company's business model, anchored by launch services, government contracts, and Starlink's global subscriber base, appears robust enough that losing individual regional deals has little impact on investor returns. As of 2026, SpaceX is valued at $1.75 trillion. Other press reports discuss the plan's shifting climate strategy, noting that 67% of its portfolio aligns with climate goals as of 2026, up from 50% in 2019. Additional coverage addresses governance questions, with vocal activists at annual general meetings demanding clarity on climate and ethics. Reports also mention privacy concerns regarding anonymous video analytics at Cadillac Fairview malls and note that private equity investments have underperformed some public benchmarks. [4] [5] [6]

Where the sources disagree

omitted: no_conflicts — the cited sources do not disagree on any figure or framing the engine can compute.

Analysis

The fund's one-year total-fund net return declined by 2.7 points from 2024 to 2025, indicating a recent slowdown in performance that you should address when discussing recent results. This drop suggests that recent market conditions or specific portfolio decisions have impacted short-term returns, so be prepared to explain the drivers behind this variance to the investor. [1]

Assets under management increased by 4.9 from year-end 2024 to year-end 2025, signaling continued growth and confidence in the fund's scale. This expansion in AUM demonstrates that the fund is successfully attracting capital or growing through appreciation, which is a positive indicator of stability and market relevance for a potential investor. [9]

Infrastructure returns lagged its benchmark by 6.0 points in 2025, a gap that is significant enough to warrant explanation but not so large as to indicate a structural failure. You should be ready to discuss specific portfolio holdings or market timing issues that contributed to this underperformance, as investors will likely probe for reasons why the infrastructure sleeve did not meet expectations. [11]

Pros and cons for a GP raising capital from this investor

Pros

• Change in aum from year-end 2024 to year-end 2025: +4.9%. [9]
• Change in funding status from 2024 to 2026: +1.0 percentage points (110% to 111%). [9]
• The plan completed the sale of its stake in New Gold’s New Afton Mine, demonstrating an active exit strategy that realizes value from private holdings. [1]
• The fund completed the sale of the Sydney Desalination Plant, further evidencing its capability to execute exits in the infrastructure sector. [1]
• The plan completed the sale of Sahyadri Hospitals, showcasing its ability to realize returns from international healthcare assets. [1]

Cons

• Change in one-year total-fund net return from 2024 to 2025: -2.7 percentage points (9.4% to 6.7%). [1]
• Infrastructure (2025): 1.8% vs 7.8%, -6.0 points against its benchmark. [11]
• The fund underperformed its benchmark by 5.0% in 2025, with a net return of 6.7% against a benchmark return of 11.7%, signaling potential execution risks that a GP should address in their pitch. [1]
• The fund holds a significant concentration in a single private equity position, with a potential $11.6 billion windfall from its SpaceX stake, which represents a high-risk, high-reward dependency on one company's IPO success. [4]
• The fund faces governance and reputational risks from activist pressure at AGMs demanding clarity on climate and ethics, as well as controversies involving portfolio companies in private prisons and detention facilities. [6]