Julie Shu and Cassandra Robertson of The Century Foundation wrote a comment on how pension funds can support growth and build an economy that supports workers:

Private equity firms have increasingly come under fire for actions that are making life more difficult and unaffordable, such as driving up the prices of single-family homes, closing hospitals that aren’t profitable enough, and laying off workers at companies they have purchased. New efforts by public pension funds are hoping to counter these bad practices and instead promote investments that benefit communities and workers. 

Public pension funds have the ability to drive investment in our economy to promote shared prosperity while seeking competitive risk-adjusted returns. These funds represent over $6 trillion in capital, and are the collective retirement savings of millions of teachers, firefighters, nurses, sanitation workers, and other public employees who have earned these benefits through years of service. These funds are invested across the economy, in private equity, in real estate, and in public markets. The largest asset managers in the world rely on pension fund dollars to help fill their portfolios. 

Recognizing this power, public pension funds are increasingly instituting policies to ensure that their money works for the people who contributed it, not against them. In line with the funds’ fiduciary duty to seek diversified, consistent, risk-adjusted returns for their participants, funds are thinking deeply about what prompts growth and prosperity. Some states are using their pension funds to invest in affordable housing or infrastructure, leveraging their capital to build the future workers hope to see. But one of the most powerful innovations is a new movement of public pension funds adopting workforce principles and requiring asset managers abide by them across their portfolio. Such principles—consistent with the fiduciary duty that fund managers have—promote investments that simultaneously maximize returns and worker well-being.

Private financial markets have grown rapidly over the past two decades and play an increasingly prominent role in the U.S. economy—and in the portfolios of institutional investors, including workers’ pension funds. Today, the private equity industry manages $11 trillion in assets, and companies owned by private equity employ about one out of every thirteen U.S. workers, or 11.7 million workers nationwide. Over half of the capital that private equity firms manage comes from public pension funds and other institutional investors. These large funds, such as the California and New York City public employee retirement system funds, invest the earnings of hard-working people who spent their careers in public service. The size of these pension funds is only expected to increase in the future. By requiring asset managers to adopt workforce principles across their portfolio to ensure that their workers are treated fairly and their rights are protected as a condition of receiving investments, pension funds are not only determining how their workers’ retirement savings are invested, but also ensuring that those investments create good jobs for other workers. 

Why does this matter?

Private equity firms are focused on the short-term profits from any given deal. Public pension funds also seek competitive, risk-adjusted returns—but in addition to that, as universal owners, they are also incentivized to seek sustainable, long-term economic growth as aligned with their fiduciary duty. 

The history of the private equity model has shown that while it can provide a good rate of return to investors, it also can have significant negative externalities for workers, communities, and the economy. When public companies are taken private, this can result in significant job losses and negatively impact whole communities. For example, when Toys R Us was bought by two private equity companies and eventually forced into bankruptcy in 2018, over 30,000 employees were laid off. The private equity firm Cerberus loaded up Steward Health Care with debt, running it into bankruptcy in 2024 and closing many of its hospitals. While this left many without access to care, the private equity company made over $800 million in profit. Some deals strip companies for parts, selling the land out from underneath a company’s buildings and leasing it back at exorbitant rates, as with Red Lobster. 

Purchase of a company by a private equity firm can also lead to lower employment, lower wages, and lower productivity. Overall, this can lead to greater inequality, which will subsequently impact other parts of the portfolio through reduced economic growth, and—if the acquisition were funded with public pension fund dollars—may not benefit the very people funding the investments. 

The push to make things better.

In order to promote not only better jobs for workers but also a better economic future for the country as a whole, public pension funds are increasingly requiring better treatment of workers across their investment portfolio. As long-term, fully diversified investors with commitments decades out, public pension funds recognize that a high-road approach toward workers can be an important tool to facilitate long-term positive returns (aligned with their fiduciary duty) that depend on overall GDP growth.  

This is where the new principles being adopted by public pension funds for their private equity investments come in. These principles include industry standard wages, freedom of association, and other measures that support the workforce. The University Pension Plan of Ontario has identified inequality as a systemic risk, as they believe inequality can lead to instability and lower overall investment returns. Labor leaders, such as Sean McGarvey, Randi Weingarten, Gwen Mills, and Rebecca Pringle, have made a clear case that supporting good jobs encourages healthy returns and is therefore an advantageous strategy for investors. This perspective is supported by a large body of research.

First, research from MIT demonstrates that good jobs lead to better productivity and more competitive companies. Higher compensation can reduce turnover and increase productivity across industries, including airports, manufacturing, warehouses, and retail. Turnover can cost an employer between 5 percent and 95 percent of an employee’s annual salary, depending on the industry. Greater productivity is essential for economic growth, a key tool for pursuing higher returns. 

Second, strong safety standards are crucial to not only worker health but also investment return. Injuries and unsafe practices can be expensive and lead to reputational risk. Research from California shows that putting worker safety first reduces employee injuries and costs, while buttressing the bottom line. 

Third, pension funds often push for union neutrality since unionization can lead to better trained workers with lower turnover and higher productivity. Capital and infrastructure projects that use union labor have higher productivity and cost less, in part because of the higher skill level of the workforce. 

Finally, adherence to high-road labor practices can lead to better performance in public markets as well. Just Capital, a research organization, has found that the companies they rank as having positive worker practices outperformed the market overall. This is confirmed by evidence that investments in compensation lead to long-term higher market returns. Implementing strong workforce principles can therefore advance productivity and profitability for both private and public companies. 

For fully diversified, long-term investors such as public pension funds who touch all parts of the economy, higher productivity and lower inequality is a strong strategy to promote growth and protect future returns. Treating workers with dignity can help to achieve these goals.

Looking ahead.

Worker power and worker rights are not at odds with competitive risk-adjusted returns. They are self-reinforcing. As unions and pension trustees continue to advocate for workers in investment decisions, they are building a more sustainable economic foundation that benefits everyone. The choice is clear: pension funds can either perpetuate a business model that ultimately undermines their own portfolios, or they can champion an approach that recognizes workers as valuable assets whose wellbeing directly correlates with sustainable, broad-based economic growth. The latter path not only honors the legacy of the working people whose careers built these pension funds, but also helps ensure those funds remain robust for future generations of retirees. 

This comment caught my attention for many reasons.

First, as public pension funds become larger and manage more assets across public and private markets, what role do they play, if any, in growing the economy and supporting workers?

Last month, I discussed how OMERS' economic contribution to Ontario grew to $15.3 billion, delivering stability and social value for members and communities: 

A growing economic impact

The new report shows that OMERS activities contributed to:

• $15.3 billion in provincial GDP (an 11% increase from 2023 and a 28% increase from 2020).

• 135,200 jobs across Ontario, including almost 40,000 jobs in rural communities.

• Nearly $4.2 billion in combined federal and provincial tax revenue.

• In total, more than 832,000 Ontarians - the equivalent of 1 in 11 households - benefited from OMERS activities in 2025.

Impact across all regions of Ontario

OMERS contribution to economic activity is felt across every region:

• Greater Toronto Area: 71,500 jobs; $7.9B GDP contribution

• Southwestern Ontario: 25,800 jobs; $2.7B GDP

• Eastern Ontario: 16,800 jobs; $1.7B GDP

• Central Ontario: 14,900 jobs; $2.4B GDP

• Northern Ontario: 6,200 jobs; $0.6B GDP

And that's just OMERS. Imagine if we did a detailed study on the economic impact of all of the Maple 8 funds and how they contribute to the Canadian economy (if I remember correctly, it was done a few years ago).

Now, on to my second point, what is the economic impact large global pension funds, sovereign wealth funds and other large institutional investors have on the global economy?

It's huge, they provide stable, long-term capital and help public and private companies grow.

When these companies grow, they hire more people and the multiplier effect of all this activity on the global economy isn't trivial.

Third, what role can global pension funds and institutional investors play in public policy?

Here is the tricky part. In the US where public pensions report to state treasurers who have their own political agenda, there is more political interference in the decision-making process.

In Canada, our large public pension funds operate at arm's length from the government, they have independent boards who focus on the best interests of members.

There is no political interference but governments still maintain power (by nominating board members) and in extraordinary circumstances, can step in if they deem it necessary (think of the purge at AIMCo).

Having said this, all of Canada's large public pension funds take responsible investing very seriously and report to their members on activities related to it.

But responsible investing isn't the primary objective; rather it's a complement to investment activities to garner better risk-adjusted returns over the long run.

There are a lot of things I agree with the comment above and some things, I do not agree with.

They paint a mostly negative view of private equity, choosing Cerberus as an example, but that old way of managing assets is dead or on its way out.

If you look at what Pete Stavros at KKR is doing, they're literally forging a new path to capitalism, sharing profits with workers if they deliver and help add value to companies they acquire.

No doubt, private equity funds have a shorter investment horizon than pension funds but the smart ones extend if they can add value to their companies and reap bigger rewards.

Do pension funds have influence on private equity funds?

Yes, they do, but I wouldn't over-emphasize it. 

KKR didn't implement its new model because public pension funds forced it to. They realized it makes great economic sense, aligning the interests of workers with their interest in adding value to companies they acquire.

But pension funds can make sure that private equity funds align with their interests as well.

For example, University Pension Plan of Ontario (UPP) states diversity is a systemic risk and they make sure all the public and private companies they invest with know their views. 

So, at some level, global pension funds and other large institutional allocators have an influence, especially with smaller private equity funds.

Lastly, a big topic these days is the impact of AI on work. I tend to agree with a Harvard study that says AI doesn't reduce work, it intensifies it. 

But pension funds investing with top venture capital funds are more privy to information on how AI will shape our economy, good and bad.

Do they have a role in supporting work, or will they invest in funds that destroy work? 

Probably a mix of both if I am truthful. 

The key thing I want to make clear here is that as pension funds get bigger and command ever more assets, policymakers will lean on them to help support the economy and if their objectives coincide, they will answer the call.

Those are just some of my reflections on pensions and public policy and how they can contribute to economic growth and and build an economy that supports workers.

Below, in this episode of Blue Skies, Erin O'Toole is joined by Jim Leech, former CEO of the Ontario Teachers' Pension Plan and a well-respected voice on business issues, to discuss the current debate about whether governments should mandate public pension plans like the CPP to invest more in Canada. 

They also explore the development of the 'Canadian Model' for pension governance and why it has gained international acclaim. They also engage in a wider discussion of issues related to Canadian economic competitiveness and financial security for pensioners.

This discussion took place a year ago but it's well worth listening to it because Erin and Jim cover a lot.

Key takeaways:

• The persistent gender wage gap widened slightly in 2025; women were paid 18.6% less than men on average after controlling for race and ethnicity, education, age, marital status, and state.
• Women are paid less than men across all education levels. Women with a graduate degree earn less, on average, than men with only a college degree.

• The gender pay gap worsened following a year of Trump administration attacks on workers, including cuts to the federal workforce; attacks on diversity, equity, and inclusion efforts; ordering mass deportations; and undermining child care and home care providers.
• States can narrow the gender pay gap with policies that guarantee access to paid family and medical leave, mandate pay transparency, raise the minimum wage, and make it easier for workers to form unions.

March 26 is Equal Pay Day, a reminder that there is still a significant pay gap between men and women in our country. The date represents how far into 2026 women would have to work on top of the hours they worked in 2025 simply to match what men were paid in 2025.

On an hourly basis, women were paid 18.6% less on average than men in 2025, after controlling for race and ethnicity, education, age, marital status, and state. After narrowing to a series low of 18.0% in 2024—likely driven by a strong labor market recovery from the COVID-19 recession that lifted wages more at the lower end of the overall wage distribution—the gender wage gap widened slightly in 2025. Though far from a total reversal of the last few years’ progress, the slight worsening in 2025 reflects the slowing of low-end wage growth and the economic consequences of Trump’s first year back in office.

Women are paid less than men due to discrimination associated with occupational segregation, devaluation of women’s work, and societal norms, much of which takes root well before women enter the labor market. The wage gap is smallest among lower-wage workers partly because the minimum wage creates a wage floor. At the 10th percentile, women are paid $1.39 (or 9.1%) less an hour than men, while the wage gap at the middle is $4.12 an hour (or 14.7%). Women at the 90th percentile of their wage distribution are paid $14.05 (or 19.6%) less an hour than men at the 90th percentile of the wage distribution.

Women are paid less than men at every education level

Although women have seen gains in educational attainment over the last five decades, they still face a significant wage gap. Among workers, women slightly outnumber men in the college-educated labor force and are significantly more likely to obtain a graduate degree than men. Even so, women are paid less than men at every education level, as shown in Figure A.

Figure A

Among workers who have only a high school diploma, women are paid 21.5% less than men. Among workers who have a college degree, women are paid 23.8% less than men. That gap of $12.07 per hour translates to roughly $25,100 lower annual earnings for a full-time worker. Women with an advanced degree also experience a significant hourly wage gap of $17.70 in 2025, amounting to over $36,800 annually.

What the data makes very clear is that women cannot educate themselves out of the gender wage gap. Systemic inequities are so persistent that women with advanced degrees are paid less per hour, on average, than men with only college degrees. Men with a college degree only are paid $50.61 per hour on average compared with $49.67 for women with an advanced degree.

Black and Hispanic women experience the largest wage gaps

For Black and Hispanic women, the pay gaps relative to white men are even larger due to compounded discrimination and occupational segregation based on both gender and race/ethnicity. In Figure B, we compare middle wages—or the 50th percentile of each group’s wage distribution—for Asian American/Pacific Islander (AAPI), Black, Hispanic, and white women with that of white men.1

White and AAPI women are paid 81.9% and 93.3%, respectively, of the amount non-Hispanic white men are paid. Black women are paid only 68.3% of white men’s wages at the middle, down from 69.6% in 2024. This is a gap of $9.87 on an hourly basis, which translates to roughly $20,500 lower annual earnings for a full-time worker. For Hispanic women, the gap is even larger: Hispanic women are paid only 64.5% of white men’s wages, an hourly wage gap of $11.06. For a full-time worker, that gap is over $23,000 a year. This disparity has also risen slightly compared with last year.

Figure B

Even when controlling for age, education, marital status, and state of residence, Black and Hispanic women are paid 25.3% and 27.4% less than their white male counterparts, respectively. In other words, very little of the observed difference in pay is explained by differences in education, experience, or regional economic conditions.

Trump administration policies exacerbate lower pay and make it harder to enforce antidiscrimination laws

Over the last year, the Trump administration has repeatedly taken actions that harm women workers, including:

• slashing the federal workforce;
• weaponizing agencies meant to defend workers and combat discrimination by turning them into defenders of discriminatory practices;
• eliminating enforcement of race- and gender-based equal employment practices for federal contractors;
• ordering mass deportations;
• undermining child care providers and vital state funds;
• limiting access to funding for higher education;
• rolling back protections for home care workers; and
• normalizing harassment and retaliation in the workplace.

Black and Hispanic women have endured and will continue to suffer the consequences of these attacks more intensely than many of their white, non-Hispanic male colleagues. Trump’s reckless decimation of the federal workforce, for instance, has disproportionately affected Black women, for whom government jobs have historically been a powerful tool for economic mobility and security. In 2025, Black women’s employment rate fell by 1.4 percentage points to 55.7%. This is one of the sharpest one-year declines in the last 25 years and is a much more dramatic drop than that of other women or Black men. College-educated Black women experienced the largest drop in employment, likely because nearly half of Black federal government workers have a bachelor’s degree or higher. This drop in well-paid, traditionally stable jobs will almost certainly lead to increased economic insecurity. Additionally, mass deportations will likely reduce jobs for both immigrant and U.S.-born women, particularly in the care sector, disproportionately impacting Hispanic women.

The Trump administration has also stifled the government’s ability to protect workers and penalize discriminatory employers. The restriction of the use of words like “gender,” “race,” “equity,” and “discrimination,” and attempts to weaponize the Equal Employment Opportunity Commission (EEOC) against women and workers of color will harm all workers, while weakening our ability to track pay equity and enforce nondiscrimination laws. Staffing levels at the EEOC have fallen steadily over the last four decades, but recent funding cuts and shifting priorities will exacerbate its already reduced capacity for enforcement. There have also been ongoing threats to the availability and continued collection of key data throughout federal agencies. If agencies that collect data on wages and incomes by demographic characteristics pull back, it would be a disaster for anyone—policymakers, researchers, employers, or workers—who wants basic facts about how well the economy is performing for different workers and different sectors.

Despite federal threats, states can help close the gender pay gap

Closing pay gaps by gender and by race and ethnicity will require policy solutions on multiple fronts. Although attacks on gender and racial equity continue at the federal level, state lawmakers can and must take steps to address the gender wage gap. Potential solutions include enacting pay transparency laws, mandating Paid Family and Medical Leave (PFML), raising the minimum wage, funding universal child care, and removing anti-worker, so-called “right-to-work” (RTW) statutes. Figure C highlights the states that have already passed some of these critical pieces of legislation, while underscoring the need for strong federal standards to cover the millions of workers who live outside of these states.

Figure C

Only 14 states have mandatory, comprehensive PFML policies, even though they provide essential benefits that help workers maintain their livelihoods while taking care of themselves and their families. Studies show that access to PFML improves outcomes for parents and children, workforce participation, and job retention, and that this a beneficial policy for both employees and employers. Access to paid leave is also shown to bridge racial gaps in care and pay.

Pay transparency laws are another useful tool that prevents employers from offering unequal pay by requiring them to include wage information in job postings. While there is some variation in laws, all include some requirement that employers provide salary information in job postings, but employers in Connecticut, Maryland, and Rhode Island only must furnish that information if requested by applicants. This wage transparency has the potential to reduce gender-based discrimination by arming jobseekers with more information and limiting employers’ ability to pay different amounts to similarly qualified candidates. A Colorado pay transparency law, for example, reduced gender wage gaps for workers who changed jobs by as much as 8.9%.

Policymakers effectively stopped protecting workers’ rights to form unions and bargain collectively starting in the 1980s, resulting in less leverage for workers and increased income inequality. Weak labor law allows employers to retaliate against union organizing and undermine workers’ right to collectively bargain. Union contracts can help narrow gender and racial wage gaps by providing clear wages for a given level of experience and education, reducing employers’ ability to discriminate in wage setting. Unfortunately, 26 states have RTW laws that make it even harder for unions to effectively organize and bargain for better contracts. States with these laws not only have lower unionization rates but also have wider gender wage gaps. By making it easier for workers to form unions, policymakers can help reduce these pay gaps.

The minimum wage keeps wages from falling below a mandated floor. While the real value of the federal minimum wage has been allowed to decline, down nearly $5 an hour since its peak in 1968, states have stepped in and increased their minimum wage. As of January 2026, 30 states and D.C. have minimum wages higher than the federal minimum, covering more than half of U.S. workers. Since women are disproportionately found in the low-wage workforce, these laws are key to increasing their economic security and narrowing wage gaps at the lower end of the wage distribution.

Although there is no single policy that will close the wage gap, each of these solutions will narrow it and improve conditions for workers across the country. In his first year back in office, Trump has rolled back critical labor standards, decimated federal unions, and laid off tens of thousands of federal workers. Now, more than ever, it is critical that states step up to protect workers under attack, prevent the gender wage gap from expanding, and build an equitable economy that works for all. 

1. Race/ethnicity categories are mutually exclusive in this analysis. Here we denote white to mean white non-Hispanic, Black is Black non-Hispanic, Asian American/Pacific Islander (AAPI) are AAPI non-Hispanic, and Hispanic refers to Hispanic of any race.

 Sarah Rundell of Top1000Funds reports on how CalSTRS' One Fund approach navigates uncertainty:

Scott Chan is shocked the market hasn’t reacted more to the crisis emulating from the US-Israel-Iran conflict. But the CalSTRS CIO is confident its one fund approach allows it to position dynamically and ensure diversification no matter what is presented.

So warned CalSTRS’ CIO Scott Chan speaking at the $392 billion pension fund’s March investment committee meeting, explaining to trustees that many unknowns lie below that will impact global trade flows, the equity bull market, and in the shape of currents like AI and America’s burgeoning housing crisis, young people’s ability to tap into the American dream.

The impact of the conflict in Iran is also gathering force below the surface of an apparently benign market.

Chan said he “was shocked” that the market hasn’t reacted more to the crisis – notwithstanding the sharp rise in oil prices. He attributed the absence of a market reaction to enduring uncertainty of how events will play out.

“The market is pricing efficiently what it knows,” he said, adding: “Right now with the uncertainty, I don’t care who you talk to, if they tell you they know what’s going to happen, you should probably walk the other way.”

In the first few weeks of the conflict, CalSTRS strategy has involved rebalancing from its slight overweight to growth assets, ensuring “ample” liquidity and staying mindful of emerging opportunities. For example, the energy crisis potentially opens the door to investment opportunities in markets that are net importers of oil through the Strait of Hormuz like India, Japan, China and South Korea, where sharp falls in the KOSPI represented a potential buying opportunity.

Away from geopolitics, Chan noted other currents building like trends in fiscal policy intervention and the formation of new trade alliances that are rewriting supply chains and redirecting how capital flows. As governments grapple to manage huge deficits, he flagged the risk and opportunity in interest rate volatility and the importance of diversification, discipline and staying dynamic.

Reflecting on market impacts closer to home, Stephen McCourt, managing principle and co-CEO, Meketa, argued that new Fed chair Keven Warsh won’t necessarily push for lower rates. “If Trump’s interest is to get the Fed to lower interest rates irrespective of data, Warsh is an unusual selection.” Coupled with inflationary concerns, he said it explains why markets have priced in fewer rate cuts for 2026.

Chan said the CalSTRS’ One Fund approach, its version of a total portfolio approach, will support the investor’s demand to dynamically allocate and diversify to maximise returns in the current complex environment. It allows the team to invest tactically to position the portfolio to benefit from volatility and has required putting in place cultural and organisational structures, notably a total fund team that maps a common language of risk, and how portfolio risk is shifting.

Recent strategies include increasing capital to asset backed private credit that is less cyclical, more stable and adds diversification with a similar return to other forms of private credit. Elsewhere, strategies include rebalancing the portfolio and pursuing opportunities when the markets are discounted.

CalSTRS generated an unofficial 13 per cent return over the last calendar year, well above the 7 per cent actuarial goal, with the value of the portfolio increasing by $42.5 billion, net of fees, contributions and benefits.

The global equity portfolio rose 22.8 per cent, led by strong non-U.S. equity market performance and interest rates fell, driving strong performance in fixed income markets.

The $58.8 billion private equity portfolio yielded a positive return over the past six months and outperformed the Custom State Street Index, which is used to evaluate performance against other institutional investors.  Staff have increased co-investments, which now represent 24.6 per cent of the private equity allocation and continue to work toward the goal of 33 per cent co-investments. 

Clearly, CalSTRS is doing well, and here CIO Scott Chan explains how their One fund approach dynamically allocates and diversifies to maximize returns in the current complex environment. 

[...] It allows the team to invest tactically to position the portfolio to benefit from volatility and has required putting in place cultural and organisational structures, notably a total fund team that maps a common language of risk, and how portfolio risk is shifting.

Recent strategies include increasing capital to asset backed private credit that is less cyclical, more stable and adds diversification with a similar return to other forms of private credit. Elsewhere, strategies include rebalancing the portfolio and pursuing opportunities when the markets are discounted.

Whatever they are doing, it's working, CalSTRS delivered a gain of 13% over the last calendar year, outperforming its large Canadian peers (but underperforming Norway's giant sovereign wealth fund which gained 15.1% in 2025).

Again, it's all about asset allocation and CalSTRS is more exposed to liquid public markets (similar to Norway's Fund) but also has a sizable private equity/ private markets portfolio which seems to be performing relatively well. 

Again, outperfoming its required rate of return (7%) by 600 basis points last calendar year is nothing to sneeze at, but keep in mind, their fiscal year ends at June 30 , so these are not official returns.

No doubt, their One Fund approach is proving very useful in this environment and they managed to diversify globally properly to take advantage of opportunities.

So, kudos to CalSTRS, Scott Chan, and his investment and risk teams, they're executing nicely in a difficult environment.

Moreover, for the 11th time, CalSTRS has been named one of the Best Places to Work in Money Management by Pensions & Investments magazine:

This 14th annual survey and recognition program is dedicated to identifying and honoring the top employers in the money management industry.

“As their employees attest, the companies named to this year’s Best Places to Work list demonstrate a commitment to building and maintaining a strong workplace culture,’’ Pensions & Investments Editor-in-Chief Julie Tatge said. “In doing so, they’re helping their employees, clients and businesses succeed.’’ 

The Best Places to Work award winners are chosen based on workplace policies, practices, philosophy, systems and demographics, as well as an employee survey.

“We’re honored to receive this award, which is a testament to our team’s commitment to protect the more than 1 million California public educators and beneficiaries who rely on us to help secure their future,” CalSTRS Chief Executive Officer Cassandra Lichnock said. “The award affirms that our greatest asset is our innovative, inclusive and passionate workforce.”

"This is an acknowledgement of the amazing teamwork and passion of our investments team and our colleagues across the organization,” CalSTRS Chief Investment Officer Scott Chan said. “I'm so grateful to the team for embracing our organization's mission and continuing to strive for innovation and collaboration.”

The 2025 Best Places to Work in Money Management award winners are posted online.

Good for them, this is a well-deserved acknowledgement.

Below, in this episode of How I Invest, a conversation with Scott Chan, Chief Investment Officer of CalSTRS, to explore how he oversees a staggering $350 billion in assets (March 2025). 

Scott shares insights on CalSTRS’ collaborative investment model, their approach to private and public markets, and why they aim to be the "global partner of choice." He also discusses the importance of structural alpha, liquidity management, and identifying long-term supply-demand imbalances.

Great discussion, listen carefully to his insights and approach. 

Key takeaways:

• Ballot initiatives have enabled voters to advance worker-centered policies—like higher minimum wages—in states with hostile legislatures, particularly in the South.
• A coordinated, right-wing legislative attack on ballot initiative processes is attempting to reverse ballot initiative wins, scare advocates out of using the ballot process, and make it harder to get future measures on the ballot that improve standards for workers.
• Despite these barriers, advocates and voters are fighting back to protect pro-worker ballot access and advance new progressive ballot measures.

In recent years, state ballot initiatives have served as powerful tools to advance economic opportunity for working families. Voters directly have raised the minimum wage, secured paid sick leave, protected abortion access, enacted bail reform, expanded Medicaid, and increased funding for public education—all popular progressive economic policies that some state legislatures have failed to enact. However, some conservative state legislatures have responded by overturning or limiting recent wins. And in the few Southern states where voters can access ballot measures—Arkansas, Florida, and Oklahoma—conservative legislators are waging war against the ballot initiative process itself, attempting to obstruct the will of voters and make it permanently more difficult for the public to directly decide on policy choices.

Why ballot initiatives are important for advancing economic opportunity

Ballot initiatives are a form of direct democracy in which voters have the power to decide on a proposed new law or constitutional amendment. Currently, 26 states and the District of Columbia offer voters access to ballot measures in some form, as do many more localities.

While more than half of the country has access to some form of direct democracy, ballot access is heavily concentrated in Western and Northern states. Only three states in the Deep South—Arkansas, Florida, and Oklahoma—effectively have ballot initiative processes. Attacks on the ballot process are intensifying in each of these states.

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Ballot initiatives are more important than ever for advancing worker-centered policies that both Congress and state legislatures have failed to enact despite clear voter support. For example, Republican lawmakers have repeatedly blocked legislative proposals to increase the minimum wage (federally and in many states) despite the popularity of increasing the minimum wage and the positive impacts it has on workers and families. In the absence of federal action, 30 states, the District of Columbia, and almost 70 localities have adopted minimum wages above the federal minimum of $7.25 per hour. Of these states, 43% (13 states) used ballot measures to secure the increase. An additional three states used direct democracy to increase minimum wages that already exceeded the federal floor.

Ballot measures have been especially critical to achieving minimum wage increases in Southern states like Arkansas and Florida. Only four other states in the South—Delaware, Maryland, Virginia, and West Virginia—have increased their minimum wages via legislation likely due to higher minimum wages in neighboring states or Democratic legislative majorities.

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Paid leave laws have remained similarly scarce across the South. Of the 18 states with some form of statewide paid sick leave, only one—Maryland—is in the South. Attempts to expand paid leave access in Southern states have so far been limited to narrow state legislation covering only some public employees, or local efforts threatened with state preemption, demonstrating the need for ballot initiatives.  

Right-wing attempts to weaken direct democracy in the South

In response to the success of progressive ballot measures, right-wing lawmakers have launched attacks on direct democracy, particularly in the South.  

Opponents of ballot access have especially targeted the signature process to delay or block measures from reaching the ballot. This strategy arose in Mississippi via a court challenge to a 2020 ballot initiative allowing the use of medical marijuana, which 74% of voters approved. As advocates including the Mississippi NAACP were building support for new ballot measures to expand Medicaid, the courts struck down the ballot process. Even though Mississippi’s Constitution guarantees voters access to ballot initiatives, the state Supreme Court ruled that no ballot initiative could be valid because of outdated constitutional language establishing the signature rules. (The old rules do not account for the lower number of congressional districts in Mississippi after redistricting, making it impossible to reach the signature threshold to put a measure on the ballot.)  

Following the Mississippi blueprint, direct democracy opponents in other Southern states have begun to challenge the signature process. After Arkansas voters passed minimum wage increases through ballot measures, the Arkansas legislature passed new state laws that could empower the state attorney general to invalidate a request for signatures because of the title of the measure. If and when the signature process begins, a host of laws make it much more difficult for canvassers to collect signatures. Canvassers must now confirm the voter reads the ballot title, inform voters that petition fraud is a crime, check voter identification, and file an affidavit stating they have complied with all laws. Scare tactics directed at both petition canvassers and signers make it harder to collect signatures out of fear that exercising their constitutional rights may lead to imprisonment.

Following minimum wage increases that passed via ballot measures, the Florida legislature followed a similar strategy of restricting the signature process for citizen-led constitutional amendments. Their legislation excludes people with felonies, people without citizenship, and non-Florida residents from being canvassers. It also requires canvassers to register with the state or face a third-degree felony charge which could be punishable by up to five years in prison. Once the signatures are collected, the law also requires the sponsor to deliver the petitions within 10 days after a voter signs, as opposed to once all signatures are collected. These restrictions deeply limit the number of people who can collect signatures and add burdensome labor to the petition sponsor by requiring frequent trips to deliver the petitions. In 2025, advocates met the signature threshold to put recreational cannabis on the ballot, but the new laws invalidated over 70,000 signatures and prevented the measure from reaching voters.  

Finally, conservative lawmakers in Oklahoma have launched attacks on the ballot process. Oklahoma organizers have already secured the signatures for a 2026 ballot measure to increase the minimum wage. In response, lawmakers attacked the signature process, restricting the share of eligible voters who can sign initiative petitions per county and consequently weakening the influence of voters in the most populous counties like Oklahoma and Tulsa counties. The Oklahoma Policy Institute explains that this new requirement would “exclude 2.2 million registered voters (or 94.4% of registered voters) from signing a petition for statutory amendments.” The restriction also has racial implications with Tulsa County home to 23% of Black Oklahomans and Oklahoma County home to 41% of Black Oklahomans. Compounding the new restrictions, the law also gives the secretary of state the authority to determine the legality of a proposal. The new law also requires that paid petitioners disclose their employer to the secretary of state and prohibits paying canvassers with out-of-state funding or based on the amount of signatures they collect, among other tactics to invoke fear.

Overall, these new petition processes can make signature collection more costly due to administrative barriers that only allow the most well-funded campaigns to have any chance of making the ballot. Consequently, the process now lends itself to causes backed by corporate interests or wealthy supporters which may not reflect the needs of average voters, contradicting the goals of ballot access policies intended to democratize decision-making.

Despite attacks, voters are still fighting to launch ballot initiative campaigns and protect direct democracy

Despite growing attacks on the ballot process, organizing across the country—and in the South—persists. In June 2026, Oklahoma State Question 832 will be on the ballot, proposing to gradually increase the minimum wage to $15 per hour by 2029. In Florida, ballot measures proposing various constitutional amendments are moving forward to expand Medicaid, legalize recreational use of marijuana, and codify the right to clean and healthy water.

Advocates are also organizing to protect the constitutional right to ballot access itself. Arkansas Public Policy Panel and the Protect AR Rights coalition continue to fight back and win against new restrictions on ballot measures, filing lawsuits and proposing a new ballot question that would make ballot access a “fundamental right.” Their new ballot question was approved in July 2025, clearing one of the last barriers for signature collection. In Oklahoma, advocates have filed two lawsuits opposing new restrictions on ballot measures—especially the state’s ability to disrupt the signature collection process—and are awaiting a decision from the state’s Supreme Court.

Voters are similarly fighting back in states where legislators have rolled back successful pro-worker ballot measures. In response to the Nebraska legislature weakening a new paid sick leave law won via ballot measure, the Respect Nebraska Voters coalition is organizing for a new ballot measure to make it more difficult for the legislature to reverse the will of voters. Missouri legislators repealed parts of a successful ballot measure that established paid sick leave and attached a cost-of-living increase to the minimum wage. Voter outrage over the legislative betrayal has “kicked the hornet’s nest,” according to the bipartisan Respect Missouri Voters coalition, which recently submitted over 20 versions of new petitions to protect ballot initiatives. If implemented, these petitions would require an 80% legislative majority to overturn a successful ballot initiative law or constitutional amendment, prohibit barriers to signature collection, allow corrections to misleading ballot language, and add other ballot protections.

The essence of ballot access is the will of the people becoming law. Despite legislative efforts to obstruct direct democracy, Southern advocates and voters continue to push for the voice of everyday people to be heard and for policies that improve the lives of workers and their family members.

Mary McDougall and Alexandra Heal of the Financial Times report Canadian pension funds count cost of private equity slump:

A number of Canada’s biggest investors lost money on their private equity holdings last year as a downturn in the buyout sector continued to weigh on returns at some of the world’s largest retirement funds.

Ontario Teachers’ Pension Plan, which manages C$279bn ($206bn) of assets, and the C$145bn Ontario Municipal Employees Retirement System reported returns of minus 5.3 per cent and minus 2.5 per cent respectively for their private equity portfolios in 2025. For OTPP, it was the worst performance for this asset class since 2008 and for Omers since 2020.

La Caisse, Quebec’s C$517bn state pension fund, also reported weak private equity results. The group said its PE portfolio returned 2.3 per cent last year, well below the 12.6 per cent gain in its benchmark index, half of which is made up of listed stocks.

The Healthcare of Ontario Pension Plan, which published results this week alongside OTPP, reported private equity returns of 3.6 per cent in 2025. Its broader private markets portfolio returned 2.1 per cent, compared with 11.7 per cent for its listed holdings.

“Those are pretty dismal numbers, in private equity returns should be at 15 per cent minimum,” said one Canadian pension investor.

Rising interest rates since 2022 have weighed on private equity investment, with higher borrowing costs hitting dealmaking, returns and exit options.

Canada’s pension system is a major private equity investor with more than 20 per cent of public sector pension money allocated to the asset class, according to think-tank New Financial.

Dale Burgess, executive managing director of equities at OTPP, said private equity investors had been “navigating increased cost of capital, more constrained exit markets and greater operating complexity, creating a drag on returns”.

OTPP’s PE portfolio dropped in value from C$60.4bn to C$50.8bn last year, partly driven by full or partial sales of its investments in insurance brokerage BroadStreet Partners, Indian hospital chain Sahyadri Hospitals and Canadian retirement home provider Amica Senior Lifestyles.

To address the challenges, OTPP said it had made a “strategic shift” towards investing in areas where it believes it has a competitive edge, particularly the financial, services and technology sectors.

Omers said its C$25.6bn private equity portfolio had a net investment loss of C$700mn last year, with challenges in its industrial holdings and “weak performance across our earlier-stage growth and venture portfolios”. In recent months Omers has announced sales in its private equity portfolio including California-based care manager Paradigm and Toronto-based home care business CBI Health.

La Caisse blamed its disappointing private equity results on “slow earnings growth for portfolio companies and lower multiples in the technology and healthcare sectors”.

Overall returns across the pension companies were boosted by buoyant stock markets last year. OTPP’s total portfolio net return was 6.7 per cent, compared with 6 per cent for Omers and 9.3 per cent for La Caisse.

A quick note on the paltry returns in PE portfolios of some of Canada's Maple 8 funds (from the ones that reported thus far).

Last week, I spoke with OTPP's former CEO Jim Leech and asked him point-blank: "What's going on with OTPP's PE portfolio?"

Jim was in good spirits. He had just come back from skiing with his grandchildren in British Columbia and told me: "I don't know. All I can tell you is there is a lot more competition nowadays compared to when I was heading up Teachers' Private Capital." 

From my vantage point, covering all these pension plans/ funds, clearly 2025 wasn't a great year in Private Equity, and it wasn't a particularly great year in private markets.

Jim Leech is right, the game has changed significantly, there's way too much competition in private equity and that has spread to infrastructure, real estate and private credit.

Alternatives used to be a niche market, now there’s not much "nichiness" going on. Everyone is doing the same thing, the big giants keep raising bigger funds, and everyone is waiting for some serious financial crisis (aka dislocation in the markets) to put a lot of dry powder to work.

All I know is there is reason to be concerned, the Maple 8 funds shifted billions collectively into private markets over the last 20 years and that game seems stale these days.

Private Equity remains an important asset class but there are a lot of discussions taking place at these large shops.

If you underperform your benchmark over one year or even three years, it's a tough pill to swallow but you'll survive. 

If you underperform your benchmark in PE for 5 years, you're in deep trouble.

I'm not sure the situation is that dire, but it's definitely not the best of times for private markets, especially private equity and real estate.

Things might be slowly changing for the better -- I think they are -- but investors are anxious and worried.

Don't forget, in Canada, the whole "raison d'etre" of shifting into private markets was to manage more internally and add value without paying excessive fees.

If you can't deliver there, your whole "value add" proposition is in trouble.

Still, I don't want to take one or two bad years and extrapolate. I think there's a lot of generalizing going on in private equity/ private credit and I want to be very careful because the level of pessimism is a bit absurd in my opinion.

Private equity stocks are finally popping this week, too soon to tell whether they're turning the corner and headed back up for good but I'm paying attention.

All this to say, no doubt, private equity is in a slump but it's not dying and going away, that's just plain silly.

Does the industry need a good shakeout? You bet, it's already underway.

The dispersion of returns of top PE funds and top private credit funds with bottom ones has grown considerably over the last few years. 

Only the best will survive and that's the way it should be.  

Below, private equity returned fewer profits to investors for a fourth straight year as the industry sat on $3.8 trillion of unsold assets and struggled to raise money for new funds. Bloomberg's Allison McNeely reports (watch this clip here as I cannot embed it below).

Also, Orlando Bravo, founder and managing partner of Thoma Bravo, sits down with CNBC's Leslie Picker to discuss the impacts of artificial intelligence on the software sector.

Third, KKR Co-CEO, Scott Nuttall discusses the firm’s evolution into a diversified global investment platform and its dealmaking priorities with Bloomberg’s Dani Burger at Bloomberg Invest 2026 in New York.

Fourth, Ares Management Corporation Co-Founder & CEO, Michael Arougheti, discusses the private credit cycle, firm growth and the push to expand access beyond traditional institutional investors. He spoke with Bloomberg’s Dani Burger at Bloomberg Invest 2026 in New York.

Lastly, Apollo Global Management Inc. Chief Executive Officer Marc Rowan warned that a shakeout is coming for private credit firms as the industry faces a wave of concerns about rising defaults on loans to software companies.

For weeks, private credit executives have faced questions from investors over whether the $1.8 trillion industry can withstand sustained pressure if the software sector is upended by artificial intelligence in the coming years. Rowan’s comments came as business development companies have been hit by redemptions in recent weeks amid those broader investor concerns.

“This will be a shakeout — I don’t think it is going to be short term,” Rowan said in an interview with Bloomberg News Editor-in-Chief John Micklethwait at Bloomberg Invest in New York. “It was foreseeable. It was predictable. And all you can do is have been a good underwriter, a good risk manager, have done a small number of stupid things.”

Monte Stewart of Canada CRE News reports Sagard, La Caisse are investing $490M in US-based IOS Properties:

Sagard Real Estate and La Caisse are launching a partnership to invest about $490 million in industrial outdoor-storage properties across major U.S. infill markets.

The partnership will pursue an industrial outdoor storage (IOS) strategy focused on key U.S. seaport markets where tenant demand is driven by proximity to major ports, population centres and trade infrastructure, said the companies. Priority markets include Southern California, the greater New York City and northern New Jersey region, the San Francisco Bay Area, Houston, and the Baltimore–Washington, D.C., metropolitan area.

The initiative brings together Sagard Real Estate (SRE), a U.S.-based real estate investment advisor and subsidiary of Montreal-based Sagard, and La Caisse. The partnership has an initial target gross asset value of CAD 490 million (US$360 million), with the option to scale through additional commitments.

“Our partnership with Sagard enables us to create a dedicated IOS platform that strengthens our real estate portfolio construction strategy through diversification into alternative sectors,” said Rana Ghorayeb, executive vice-president and head of real estate at La Caisse. “IOS is a critical supply chain asset class, benefiting from strong structural tailwinds: E-commerce growth, global trade, and nearshoring. By leveraging Sagard’s fully integrated regional teams and proven off-market sourcing capabilities, we gain privileged access to high-quality opportunities.”

Sagard Real Estate President Mark Bigarel said the organizations worked closely to develop the strategy and target markets.

“This partnership brings together two like-minded organizations with aligned values and complementary strengths,” he said. “With La Caisse’s scale and long-term vision, combined with our operator-driven expertise, we are well-positioned to capture compelling opportunities in markets with strong fundamentals and durable demand drivers.”

The partnership has completed its first acquisition in the Meadowlands submarket serving the greater New York City area. The fully leased IOS property functions as an operational hub with strong connectivity to Manhattan and the Port of New York and New Jersey.

“Our IOS program focuses on some of the most strategically important U.S. logistics and trade markets, and this first closing directly advances our investment objectives,” said Chad Messer, deputy CIO and portfolio manager at Sagard Real Estate. “With limited supply and high demand for well-located outdoor-storage facilities near major seaports and population hubs, we believe this strategy is uniquely positioned to generate attractive, risk-adjusted returns through disciplined sourcing, value creation, and active management.”

Sagard Real Estate said the partnership reflects both organizations’ commitment to building a scalable IOS platform across major U.S. port and population-centre markets, supported by long-term capital and durable demand fundamentals. 

Nolan Keegan of Hoodline also reports big-money yard grab hits Meadowlands as Sagard, La Caisse roll out $360M storage play:

Two heavyweight investors are teaming up to turn unglamorous pavement into a serious cash play. Sagard Real Estate and La Caisse have launched a new U.S. joint venture aimed at buying and operating industrial outdoor storage yards near major ports, with an initial gross asset target of CAD 490 million (about USD 360 million) and a first deal already inked in the Meadowlands submarket. The focus is on fenced, paved yard space used by contractors, trailer operators and equipment fleets at a time when infill land near key seaports is getting scarce. Executives are pitching the strategy as a way to lock in steady income from a niche corner of the logistics chain where well-located sites are hard to find.

In a company release, Sagard Real Estate said the partnership will target Southern California, the greater New York City and northern New Jersey region, the San Francisco Bay Area, Houston and Baltimore/Washington, D.C., and that the joint venture can expand further if additional capital is committed, according to Sagard Real Estate. La Caisse, the Quebec pension giant that reported net assets of CAD 517 billion as of Dec. 31, 2025, is serving as the strategic capital partner in the vehicle, per La Caisse.

Why yard space is suddenly a prime asset

Executives describe industrial outdoor storage, or IOS, as a structural investment play tied to the rise of e-commerce, global trade flows and nearshoring, all colliding with a finite supply of infill yard sites near big population centers and ports. "IOS is a critical supply chain asset class, benefiting from strong structural tailwinds - e‑commerce growth, global trade, and nearshoring," said Rana Ghorayeb, La Caisse’s head of real estate, in the companies' announcement via Sagard Real Estate. Sagard added that the partnership will lean heavily on regional sourcing and off-market access as the backbone of its value-creation strategy.

First Meadowlands deal plants the flag

The joint venture’s debut purchase is a fully leased IOS hub in the densely built-out Meadowlands submarket serving the greater New York City area. The partners say the property’s strong connectivity to Manhattan and the Port of New York and New Jersey underpins long-term structural demand for the site. Industry coverage has highlighted the CAD 490 million (roughly USD 360 million) initial target for the program and noted that the partners have not released detailed information about the specific location, according to Bisnow.

Local fallout: better yards, tougher land markets

Institutional buyers can upgrade yard operations with improvements like paving, lighting and security, but their arrival can also tighten local land markets and fuel community pushback over truck trips and shifting land uses. That tension is already apparent in Southern California, where investors have been converting underused parcels and flex properties into IOS yards, according to goes all in on industrial storage land grab coverage and a MacLeod & Co. market report that points to tight supply and rising per-acre pricing.

What this means for other port cities

Because the joint venture includes an option to scale, industry watchers expect more acquisitions in major seaport markets and even fiercer competition for infill industrial land, according to observers cited by Bisnow. For the full details on the strategy and initial rollout, see the companies’ press announcement and the original distribution via WebWire and the firms’ releases. 

Last week, La Caisse issued a press release stating it is launching an industrial outdoor storage joint venture strategy with Sagard Real Estate:

Sagard Real Estate (SRE), a leading U.S.-based real estate investment advisor and subsidiary of Sagard, a global multi-strategy alternative asset management firm, and La Caisse (formerly CDPQ), a global investment group, today announced the launch of a new partnership focused on an Industrial Outdoor Storage (IOS) strategy across major U.S. infill markets, with an initial target gross asset value of CAD 490M (USD 360M) and the option to scale the partnership through further commitments.

This partnership between two major Québec institutions will deploy an IOS strategy focused on key U.S. seaport markets where strong tenant demand is driven by proximity to major ports, population centers, and trade infrastructure. Priority markets include Southern California, greater New York City/northern New Jersey, the San Francisco Bay Area, Houston, and the Baltimore/Washington, D.C., metropolitan area.

“Our partnership with Sagard enables us to create a dedicated IOS platform that strengthens our real estate portfolio construction strategy through diversification into alternative sectors,” said Rana Ghorayeb, Executive Vice-President and Head of Real Estate at La Caisse. “IOS is a critical supply chain asset class, benefiting from strong structural tailwinds—e-commerce growth, global trade, and nearshoring. By leveraging Sagard’s fully integrated regional teams and proven off-market sourcing capabilities, we gain privileged access to high-quality opportunities.”

“We are proud to partner with La Caisse on this new IOS strategy. Our teams have worked closely to define the markets, lifecycle, and we look forward to executing on this together,” said Mark Bigarel, President of Sagard Real Estate. “This partnership brings together two like-minded institutions with aligned values and complementary strengths. With La Caisse’s scale and long-term vision, combined with our operator-driven expertise, we are well-positioned to capture compelling opportunities in markets with strong fundamentals and durable demand drivers.”

The partnership has closed its first acquisition, an IOS investment in the highly infill Meadowlands sub-market, serving the greater New York City area. The location of the fully leased operational hub offers strong connectivity to Manhattan and the Port of New York and New Jersey, supporting long-term structural demand.

“Our IOS program focuses on some of the most strategically important U.S. logistics and trade markets, and this first closing directly advances our investment objectives,” said Chad Messer, Deputy CIO and Portfolio Manager, Sagard Real Estate. “With limited supply and high demand for well-located outdoor storage facilities near major seaports and population hubs, we believe this strategy is uniquely positioned to generate attractive, risk-adjusted returns through disciplined sourcing, value creation, and active management.”

The partnership affirms Sagard Real Estate and La Caisse’s commitment to advancing IOS across major U.S. port and population-center markets, establishing a scalable platform supported by long-term capital and durable demand fundamentals.

ABOUT SAGARD REAL ESTATE

Sagard Real Estate is a real estate investment advisor and operator providing investment management services throughout the U.S., including portfolio management, acquisitions, debt origination, asset management, development, and property management for investors. With US$6.0 billion in assets under management, Sagard Real Estate offers commercial real estate investment strategies through separate accounts and commingled funds. Founded in 1997, the firm is headquartered in Denver and maintains regional investment offices in New York City, Charlotte, Austin, Los Angeles, and San Francisco metro areas. Sagard Real Estate is a part of Sagard, a multi-strategy alternative asset management firm.

For more information, visit www.sagard.com/realestate or follow us on LinkedIn.

ABOUT SAGARD

Sagard is a global multi-strategy alternative asset management firm with more than US$33B under management1, 190 portfolio companies, and 440 professionals.

We invest in venture capital, private equity, private credit, and real estate. We deliver flexible capital, an entrepreneurial culture, and a global network of investors, commercial partners, advisors, and value creation experts. Our dynamic and supportive ecosystem gives our partners the advantage they need to learn, grow and win at every stage. The firm has offices in Canada, the United States, Europe and the Middle East.

For more information, visit www.sagard.com or follow us on LinkedIn.

1As of September 30, 2025

ABOUT LA CAISSE

At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long-term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec’s economic development.

As a global investment group, we’re active in the major financial markets, private equity, infrastructure, real estate and private credit. As at December 31, 2025, La Caisse’s net assets totalled CAD 517 billion. For more information, visit lacaisse.com or consult our LinkedIn or Instagram pages.

Alright, it's Monday, most people are off in Ontario, Alberta and British Columbia this week, so I expect it to be quiet in the pension world (not in markets).

This joint venture between Sagard Real Estate and La Caisse caught my attention last week for two reasons.

First, last September, I wrote about how OTPP is launching a JV with Sagard Real Estate to invest in US industrial properties.

The real estate subsidiary of Sagard is now launching a joint venture with La Caisse focused on an Industrial Outdoor Storage (IOS) strategy across major US infill markets, with an initial target gross asset value of CAD 490M (USD 360M) and the option to scale the partnership through further commitments. 

Clearly, Sagard Real Estate is attracting top Canadian pension funds because of its expertise and experience in traditional and niche strategies.

Second, I like this strategy because instead of playing pure logistics, it's more defensive and really deals with the scarcity of land issue near major ports. From the second article:

The focus is on fenced, paved yard space used by contractors, trailer operators and equipment fleets at a time when infill land near key seaports is getting scarce. Executives are pitching the strategy as a way to lock in steady income from a niche corner of the logistics chain where well-located sites are hard to find. 

The article also states:

Institutional buyers can upgrade yard operations with improvements like paving, lighting and security, but their arrival can also tighten local land markets and fuel community pushback over truck trips and shifting land uses.

But La Caisse and Sagard Real Estate both espouse sustainable investing and I doubt you'll see community pushback.

In short, I like this joint venture because if it's done correctly, you can realize great risk-adjusted returns in this Industrial Outdoor Storage (IOS) space. 

As Rana Ghorayeb, Executive Vice-President and Head of Real Estate at La Caisse states in the press release:  

“IOS is a critical supply chain asset class, benefiting from strong structural tailwinds—e-commerce growth, global trade, and nearshoring. By leveraging Sagard’s fully integrated regional teams and proven off-market sourcing capabilities, we gain privileged access to high-quality opportunities.” 

I also like what Chad Messer, Deputy CIO and Portfolio Manager, Sagard Real Estate

“Our IOS program focuses on some of the most strategically important U.S. logistics and trade markets, and this first closing directly advances our investment objectives. With limited supply and high demand for well-located outdoor storage facilities near major seaports and population hubs, we believe this strategy is uniquely positioned to generate attractive, risk-adjusted returns through disciplined sourcing, value creation, and active management.” 

There you have it, it's all about generating great risk-adjusted returns during volatile and uncertain times.

Lastly, speaking of volatile and uncertain times, earlier today I learned Iran hit key UAE oil port and Dubai airport.

Keep in mind, La Caisse invested US$2.5 billion in 2022 to acquire stakes in DP World’s key Dubai assets, including the Jebel Ali Port, Jebel Ali Free Zone, and National Industries Park. This partnership made CDPQ a major partner in the Middle East's largest port. 

I hope the people working there are safe and these assets were not hit in these strikes but clearly we are now seeing the risk of war on key infrastructure assets in that region.

Below, in this epsiode of The Weekly Take from CBRE, Spencer Levy explores the world of Industrial Outdoor Storage (IOS) with Brian Fiumara & Myles Harnden from CBRE and Nick Firth from Industrial Outdoor Ventures. From its unique benefits and challenges to capital markets and pricing, environmental and regulatory concerns, and future outlook, get the inside scoop on this exciting new asset class.

Also, Industrial Outdoor Storage (IOS) is booming, a discussion with expert Vytas Norusis, Senior Valuation Services Director at Colliers.

Discover a wealth of free wallet patterns in PDF format, perfect for DIY enthusiasts! Explore options ranging from simple cardholders to convertible purse designs, readily available online.

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Mobile Phone and Passport Compatibility

Beyond just cash and cards, the Spencer Ogg Sewing Patterns wallet offers surprising versatility! The design accommodates a standard-sized mobile phone, providing a secure and convenient carry solution for those on the go. Imagine consolidating your essentials into one compact accessory.

Remarkably, this wallet also fits a passport, making it an excellent travel companion. This feature eliminates the need for a separate passport holder, streamlining your travel preparations. The free PDF pattern allows for a surprisingly spacious interior, cleverly designed for modern needs!

Advanced Wallet Pattern Features

Explore innovative designs like cork wallet variations and convertible purse/wallet options with detachable straps, elevating your crafting projects!

Cork Wallet Variations & Matching Sets

Delve into the world of cork wallet crafting, discovering tutorials for creating larger and more sophisticated designs. Consider expanding your project beyond a single wallet by exploring options for coordinating matching sets. This allows for a cohesive and stylish accessory collection.

Specifically, the “Bigger and Better Cork Wallets” tutorial offers guidance on scaling up your designs. This is ideal for those seeking increased capacity or a more substantial aesthetic. Creating matching sets—perhaps a wallet, cardholder, and key chain—adds a personalized touch and makes for thoughtful gifts.

Cork provides a unique texture and sustainable alternative to traditional leather, offering a distinctive look and feel.

Bigger and Better Cork Wallets Tutorial

Explore a dedicated tutorial focused on crafting larger cork wallets, expanding beyond basic designs. This resource provides detailed instructions for achieving a more substantial and functional accessory. The tutorial caters to crafters seeking increased capacity for cards, cash, and even mobile phones.

It guides you through the process of adapting existing patterns or creating new ones specifically tailored for cork material. Learn techniques for working with cork’s unique properties, ensuring durability and a professional finish.

This tutorial is perfect for those wanting to elevate their cork wallet projects and create truly impressive pieces.

Convertible Purse/Wallet Designs

Discover innovative wallet patterns that seamlessly transform into compact purses! These designs offer ultimate versatility, adapting to your needs with detachable strap functionality. Enjoy the convenience of a streamlined wallet for everyday use, quickly converting to a hands-free purse when required.

Free PDF patterns often include detailed instructions for attaching and detaching straps, ensuring a secure and stylish transition. Explore options with varying strap lengths and attachment methods to personalize your convertible accessory.

Embrace the flexibility of a two-in-one design!

Detachable Strap Functionality

Explore the clever design element of detachable straps in convertible wallet patterns! These patterns prioritize adaptability, allowing you to switch effortlessly between a compact wallet and a convenient purse. Free PDF downloads often showcase various strap attachment methods, including snaps, clasps, or loops.

Benefit from the freedom to carry essentials hands-free or stow the strap for a minimalist profile. Many patterns offer adjustable strap lengths for customized comfort. This feature enhances the wallet’s practicality, making it ideal for travel or daily commutes.

Resources for Pattern Download & Tutorials

Find numerous websites offering free wallet patterns in PDF format, alongside helpful YouTube tutorials demonstrating construction techniques for various designs.

Free PDF Pattern Download Locations

Numerous online platforms host free wallet patterns in convenient PDF format. Websites like WeTransfer (we.tl/t-EWn7fuDLWd) provide direct access to patterns like Ragnar’s curved card wallet. Spencer Ogg Sewing Patterns offers a free coin purse/wallet pattern with detailed instructions. Searching online for “wallet sewing pattern” or “DIY wallet pattern free” yields a plethora of results, including beginner-friendly options and scrap-buster designs.

Additionally, exploring designer websites and online crafting communities often reveals exclusive freebies. Remember to always verify the source and download responsibly, ensuring the file is safe before opening it. These resources empower crafters to create stylish and functional wallets without any upfront cost.

YouTube Video Tutorials for Visual Guidance

Complementing the free PDF wallet patterns, numerous YouTube tutorials offer step-by-step visual guidance. Spencer Ogg Sewing Patterns provides a video tutorial alongside their free coin purse/wallet pattern, simplifying the construction process. These videos demonstrate cutting techniques, sewing methods, and assembly procedures, ideal for beginners.

Searching “wallet sewing tutorial” or specific pattern names on YouTube reveals a wealth of instructional content. Visual learners benefit greatly from observing the techniques firsthand, enhancing understanding and confidence. These tutorials often cover troubleshooting common issues and offer customization tips, maximizing the value of your free pattern.

Materials Needed for Wallet Construction

Essential materials include leather (various types & thicknesses), needles, thread, cutting tools, and potentially cork for variations – all to bring your free PDF pattern to life!

Leather Types and Thickness Recommendations

Selecting the right leather is crucial for a durable and aesthetically pleasing wallet. For beginners utilizing free PDF patterns, vegetable-tanned leather is highly recommended due to its ease of tooling and finishing.

Thickness varies depending on the desired wallet style. Card wallets generally benefit from 2.0mm – 2.4mm leather, providing sufficient structure without excessive bulk. For more substantial wallets accommodating phones or passports, consider 2.8mm – 3.5mm leather.

Scrap leather is excellent for practice and smaller projects, aligning with “scrap buster” patterns. Always ensure the leather is free of blemishes and has a consistent thickness throughout the piece for optimal results when following your chosen free PDF pattern.

Sewing Supplies: Needles, Thread, and Tools

Essential supplies are key to successfully crafting a wallet from a free PDF pattern. A leather sewing needle – specifically a diamond point – is vital for piercing the material cleanly. Polyester thread, known for its strength and durability, is preferred over cotton.

Tools include a rotary cutter or sharp utility knife for precise leather cutting, a metal ruler for straight edges, and an awl for pre-punching stitch holes. A mallet aids in setting snaps or rivets.

Edge bevelers and slickers enhance the wallet’s finish. Remember to select tools appropriate for the leather thickness specified in your chosen free pattern.

Construction Techniques

Master precise cutting and assembly of leather pieces, following your free PDF wallet pattern. Durable sewing techniques, like saddle stitching, ensure a long-lasting finish.

Cutting and Assembling Leather Pieces

Precise cutting is paramount when working with your downloaded free wallet pattern PDF. Carefully transfer the pattern pieces onto your chosen leather, utilizing a sharp utility knife or rotary cutter for clean lines. Remember to account for seam allowances, if not already included in the pattern.

Accuracy during cutting directly impacts the final product’s appearance and functionality. After cutting, dry-fit the pieces together to ensure proper alignment before committing to any permanent joining methods. Use leather cement or glue sparingly to temporarily hold pieces in place during assembly.

Pay close attention to the orientation of the leather grain, as this can affect the wallet’s durability and aesthetic appeal. Consistent pressure during gluing and clamping will create strong, lasting bonds.

Sewing Techniques for Wallet Durability

Robust stitching is crucial for a long-lasting wallet crafted from a free PDF pattern. Employ a saddle stitch – a hand-sewing technique – for superior strength and a professional finish. Alternatively, use a sewing machine with heavy-duty thread and a leather needle.

Backstitching at the beginning and end of each seam reinforces the stitching and prevents unraveling. Maintain consistent stitch length and tension throughout the sewing process. Consider edge finishing techniques, like edge painting or burnishing, to seal the leather edges and prevent wear.

Reinforce stress points, such as corners and card slots, with additional stitching or rivets for enhanced durability.

Customization Options

Personalize your wallet using a free PDF pattern! Add embellishments, linings, or adjust sizes to create a unique and functional accessory reflecting your style.

Adding Personal Touches: Embellishments & Linings

Elevate your free PDF wallet project with creative embellishments! Consider adding decorative stitching, rivets, or even small leather appliques for a unique flair. Experiment with different lining fabrics – cotton, felt, or even patterned materials – to not only enhance the aesthetic but also provide added durability and structure.

Linings can also conceal raw edges and offer a more polished finish. Don’t be afraid to explore contrasting colors or textures to make your wallet truly stand out. Remember, a free pattern is a canvas for your imagination; personalize it to reflect your individual style and preferences!

Adjusting Pattern Sizes for Individual Needs

Utilizing a free wallet pattern PDF doesn’t mean you’re locked into a single size! Many patterns, like those offering multiple spacing options (2.7mm, 3.0mm, 3.38mm, 3.85mm), provide a foundation for customization. If you require a larger or smaller wallet, carefully scale the pattern during printing, ensuring proportional adjustments are made to all components.

Consider the dimensions of your cards and cash when making alterations. For matching sets, explore tutorials like “Bigger and Better Cork Wallets” for guidance on size variations. Remember to test the adjusted pattern with scrap material before cutting into your final leather!

Troubleshooting Common Issues

Address STL file errors by double-checking exports before cutting. Leather cutting challenges can be overcome with sharp tools and careful pattern alignment.

Addressing Errors in STL Files

Encountering issues with STL files is common when working with digital patterns. Before committing to cutting your leather, meticulously inspect the downloaded file. The creator notes that they cannot be held responsible for export errors, emphasizing the importance of self-verification. Look for gaps, overlaps, or distorted shapes within the file preview.

If discrepancies are found, consider re-downloading the file or attempting to open it in a different STL viewer. Sometimes, software compatibility can cause rendering problems. Remember, a flawed STL file will translate into an inaccurate cut, potentially ruining your material. Prioritize careful examination to ensure a successful project!

Dealing with Leather Cutting Challenges

Cutting leather accurately requires sharp tools and a steady hand. When using patterns, ensure they are securely adhered to the leather to prevent shifting during cutting. For intricate designs, a rotary cutter can provide cleaner lines than a traditional knife, especially with thinner leathers.

Be mindful of leather grain direction; cutting against the grain can lead to stretching or uneven edges. If you’re new to leatherwork, practice on scrap pieces first to refine your technique. Patience is key – rushing can result in mistakes. Utilize the extra bodies included in some STL files for alignment assistance.

Where to Find More Patterns

Explore online communities, forums, and designer websites for additional free wallet patterns and inspiration to expand your crafting possibilities!

Online Communities and Forums

Engage with fellow crafting enthusiasts in vibrant online communities and forums dedicated to sewing and leatherwork. These platforms are treasure troves of shared knowledge, offering access to numerous free wallet patterns often not found elsewhere. Members frequently share their own designs, modifications, and helpful tips for successful construction.

Participate in discussions, ask questions, and showcase your completed projects to receive valuable feedback and inspiration. Websites like Reddit (specifically subreddits focused on leathercraft or sewing) and dedicated crafting forums provide a supportive environment for learning and discovering new patterns. Don’t hesitate to search within these communities using keywords like “free wallet pattern PDF” to uncover hidden gems!

Designer Websites Offering Freebies

Many independent designers generously offer free wallet patterns in PDF format as a way to showcase their skills and attract customers. Spencer Ogg Sewing Patterns, for example, provides a free pattern for a two-pocket coin purse/wallet, complete with instructions and a video tutorial.

Explore websites specializing in sewing patterns; often, they feature a section dedicated to free downloads. Regularly check these sites, as freebies are often time-limited promotions. Searching directly for designers offering “free wallet pattern PDF” can yield excellent results, leading you to unique and high-quality designs.

The post wallet pattern pdf free appeared first on Every Task, Every Guide: The Instruction Portal
.

Freschia Gonzalez of Benefits and Pensions Monitor reports OPTrust marks 30 years with 17th straight fully funded result:

Seventeen years of full funding and three decades in operation put OPTrust in a small club of Canadian defined benefit plans that have delivered on their promises through multiple market cycles. 

OPTrust’s 2025 Funded Status Report, Service & Security – Since 1995, confirms the OPSEU Pension Plan remained fully funded for the 17th consecutive year. On a funding basis at 31 December 2025, the Plan reported an actuarial value of assets of $27.9bn against liabilities of $27.7bn, for a surplus of $199m. 

Financial‑statement figures show net assets available for benefits of $27.2bn, pension obligations of $22.5bn and an accounting surplus of $4.7bn. 

The funding valuation uses a 2.80 percent real discount rate (4.80 percent nominal), down from 2.90 percent (4.90 percent nominal) in 2024. That change alone added about $562m to liabilities, but OPTrust still held its fully funded position. 

The valuation also identified $708m in deferred investment losses to be recognised over four years, using asset smoothing to support stability in future valuations. 

On the asset side, OPTrust posted a 4.2 percent net Total Portfolio return in 2025.  

The five‑year average net return stands at 6.3 percent, the 10‑year at 6.7 percent, and the since‑inception average at 7.8 percent. Investment returns now account for more than 70 percent of the benefits OPTrust pays to members when they retire. 

Peter Lindley, president and chief executive officer of OPTrust, said that “in a year shaped by economic uncertainty and geopolitical tensions,” the Plan’s results reflected its diversified investment approach. 

He said their role as a long‑term investor allows them to “look beyond short‑term uncertainty” and focus on keeping the Plan sustainable over the decades ahead. 

The asset mix pairs a large illiquid allocation with a sizeable liquid book. Illiquid assets – private equity, infrastructure, real estate and an incubation portfolio – represented 54.2 percent of the portfolio and returned ‑0.8 percent in 2025, but 10.4 percent over five years and 12.3 percent over 10 years.  

Within that, private equity (18.7 percent of assets) returned 4.6 percent, infrastructure (17.9 percent) 1.9 percent and real estate (16.9 percent) ‑8.5 percent. 

Liquid assets accounted for 61.2 percent of the portfolio and returned 10.5 percent. Government bonds (27.3 percent) returned 0.8 percent. Public equity (16.6 percent) delivered 18.2 percent, credit (3.2 percent) 5.7 percent, Absolute Return Strategies (8.0 percent) 9.7 percent and commodities (6.1 percent) 45.0 percent, reflecting strong gold performance.  

The Funding Portfolio, which manages liquidity and uses moderate leverage, showed a weight of ‑15.4 percent, indicating balance sheet leverage at the total‑fund level. 

2025 also marked the first full year of a structural shift in public markets. OPTrust combined eight separate programmes into a single Liquid Completion Portfolio under its Member‑Driven Investing strategy, its version of a Total Portfolio Approach.  

The new portfolio, managed centrally by the Total Portfolio Management group, returned 20.3 percent and generated $1.6bn in profits in its first year. 

On the liability side, the report shows 117,895 members and retirees at year‑end: 55,510 active members, 17,962 former members with entitlements and 44,423 pensioners.  

Active members had an average age of 43.4 and average salary of $78,563. Retirees had an average age of 74.5 and received an average annual pension of $25,636.  

In 2025, OPTrust paid $1,417m in benefits and received $716m in contributions. 

The 2025 cost‑of‑living adjustment was 2.0 percent for both the primary schedule and OPTrust Select. 

Under the primary schedule, pensions in pay and deferred pensions automatically receive inflation adjustments.  

Under OPTrust Select, the Board may grant inflation‑related increases on a discretionary basis. 

According to the report, a retiree who started a $20,000 pension in January 1995 would receive $38,059 starting January 2026, a 90 percent increase over 31 years. 

Service metrics remained strong. Members rated OPTrust’s service 8.6 out of 10 in 2025, and CEM Benchmarking ranked the organisation among the top 10 pension plans globally for service.  

The Member Experience and Pension Operations team handled about 48,000 phone calls and supported roughly 73,500 life events, while recalculating benefits for about 61,000 members and former members who received retroactive salary increases dating back to 2022. 

Responsible investing and climate remain embedded in the strategy.  

OPTrust reports that it met all 2025 targets under its climate change strategy, now four years into a net‑zero‑aligned program launched in 2022.  

Between 2023 and 2024, the Plan achieved a 23 percent reduction in its carbon footprint through decarbonisation in several carbon‑intensive assets and changes in portfolio composition.  

In 2025, OPTrust voted at 700 company meetings in 30 countries, engaged 104 companies in 28 countries on ESG issues, and completed the fourth year of its COMPAS ESG data program to support investment monitoring and stewardship. 

Lindley said OPTrust was set up 30 years ago “to pay pensions today and preserve pensions for tomorrow.” He said the plan has been fully funded for 17 consecutive years and serves 118,000 members in retirement.  

On Wednesday, OPTrust released its 2025 Funded Status Report, stating it was fully funded for 17th consecutive year:

TORONTO, March 11, 2026 — Today, OPTrust released its 2025 Funded Status Report — Service & Security – Since 1995 — which details the Plan's financial results and funded status, while marking its 30th anniversary. In 2025, OPTrust remained fully funded for the 17th consecutive year and achieved a net investment return of 4.2 per cent. Over the past 10 years, the Plan's average net investment return is 6.7 per cent.

“Thirty years ago, OPTrust was founded with a mission to pay pensions today, and preserve pensions for tomorrow,” said Peter Lindley, President and CEO of OPTrust. “As OPTrust remains fully funded for the 17th consecutive year, we continue to fulfil that purpose for our 118,000 members, delivering income security and peace of mind in retirement.”

Since starting operations in 1995, OPTrust’s membership has grown by more than 70 per cent, and assets have increased nearly fivefold. Today, investment returns account for more than 70 per cent of the benefits paid to OPTrust members when they retire, with over $1.4 billion in entitlements paid in 2025. The Plan’s average annual net investment return since inception is 7.8 per cent.

“In a year shaped by economic uncertainty and geopolitical tensions, the continued strength of the Plan is a testament to our diversified investment strategy guided by an experienced investment team,” said Lindley. “Our perspective as a long-term investor allows us to look beyond short-term uncertainty, and to stay focused on the sustainability of the Plan over the decades to come.”

OPTrust continues to provide exceptional service to members, who rated their service satisfaction as 8.6 out of 10. The Plan was recognized among the top 10 pension plans globally for service by CEM Benchmarking Inc.'s annual rankings.

Find more information about OPTrust's 2025 strategy and results in Service & Security – Since 1995 at optrust.com.

About OPTrust

With net assets of over $27 billion, OPTrust invests and manages one of Canada's largest pension funds and administers the OPSEU Pension Plan (including OPTrust Select), a defined benefit plan with 118,000 members. OPTrust was established to give plan members and the Government of Ontario an equal voice in the administration of the Plan and the investment of its assets through joint trusteeship. OPTrust is governed by a 10-member Board of Trustees, five of whom are appointed by OPSEU/SEFPO and five by the Government of Ontario.

Take the time to read the full Funded Status Report here. It is extremely well written and provides all the important information.

Before I get to my discussion with James Davis, some high-level comments.

First, a message from Chair Richard Nesbitt and Vice-Chair Ram Selvarajah:

 

I note:

The Board continues to oversee OPTrust’s five-year strategic plan, now in its fourth year. The transformation of our pension administration system and processes through the PATH initiative is progressing well and remains on track for rollout in 2027. We are also advancing our climate change strategy, now four years in, with climate considerations integrated into core investment processes as part of our ambition to achieve a net-zero portfolio by 2050.

Modernization efforts across the organization — including the thoughtful use of AI tools — are strengthening our capabilities and enhancing collaboration in a hybrid work environment. At the same time, we are investing in our people, fostering learning and career growth to build a durable foundation for the decades ahead. 

Next, a message from CEO Peter Lindley:

I note the following (shorter version from here):

Thirty years ago, OPTrust was founded with a clear purpose: to provide secure, reliable pensions for our members. Today, that purpose remains unchanged, though the world around us has evolved dramatically.

Navigating a complex landscape

The past year has been shaped by economic uncertainty and geopolitical tensions that continue to influence markets and the Canadian economy. In this environment, resilience matters. OPTrust is fully funded for the 17th consecutive year, consistent with our long-term objectives.

Putting members first

Our members count on us for more than investment performance – they trust us for guidance and support through every stage of their careers and into retirement. We are advancing the modernization of our pension administration system to continue supporting our members now and into the future. This modernization project, called PATH, will transform how we serve them.

Building for the future

We are in the fourth year of our five-year strategic plan, seeing strong progress in enhancing Plan sustainability, investing in our people and strengthening our capabilities. In an ever-changing world, being strategic means embracing innovation in a thoughtful way. We are piloting AI tools to enhance efficiency and collaboration, with careful attention to governance and security. Combined with modernization efforts like PATH, these initiatives are creating a stronger, more agile organization that is ready to meet the needs of tomorrow. 

“I am proud of what OPTrust has accomplished and energized by what lies ahead. Our focus remains clear: delivering pensions today and preserving pensions for tomorrow. That commitment has guided us for 30 years, and it will continue to guide us for decades to come.” -- Peter Lindley

Next, some highlights from OPTrust's 2025 year:

 Here are the membership statistics for OPTrust:

The key thing here is that the ratio of active to retired workers is 1.25 so OPTrust is a more mature plan and needs to manage risks more closely.

The real discount rate dropped in 2025 from 2.9% to 2.8%, "reflecting a more conservative estimate
of investment returns, adds prudence to the funding assumptions, helping to ensure the Plan will be ready to tackle future challenges":

The following from pages 22 and 23 of the 2025 Funded Status Report are very important to read and understand because it situates readers on their member-driven investment journey and philosophy and why they implemented a total portfolio approach across public markets last year:

 

Worth noting this:

The early impact of the new model was evident in 2025 results. The Liquid Completion Portfolio generated a 20.3 per cent return, delivering $1.6 billion in total profits in the first year of implementation. 

The plan's total portfolio performance is best gauged over a longer period, returning 6.7% annualized over a 10-year period:

And the table below shows OPTrust's asset mix and returns by asset class as at the end of 2025:

As you can see, 54.2% of the assets are in illiquid private markets and 61.2% in liquid (public) markets (doesn't add up to 100% because they used leverage in liquid markets).

Real estate had a tough year, and James and I discussed this below, but strong returns in public equity, commodities and absolute return strategies helped them post a positive return. 

Lastly, OPTrust manages 74% of its assets internally to reduce costs and is well diversified internationally but also has excellent domestic exposure:

Alright, I provided a good overview of the key highlights for 2025. 

Discussion With OPTrust CIO James Davis  

Earlier today, I had a discussion with OPTrust CIO James Davis, going over their 2025 results.

I want to thank him for taking the time to talk to me and also thank Jason White for sending me material and setting up this virtual meeting.

James began by giving me an in-depth overview covering everything in detail:

Well, the first thing I want to point out is that this is the 30th anniversary at OPTrust. It's also the 10th anniversary of our member-driven investment strategy and my 10th anniversary here at OPTrust. 

It's kind of a very opportune time to reflect on our investment performance at OPTrust in general. And I thought what I would do is give you a little bit of colour, since it is the 10th anniversary of our member-driven investment strategy, on how well that's done. That was introduced in 2015 and really what it was designed to do was to focus our plan on what the real objective is, which is sustainability, being able to pay pensions today and preserve pensions for tomorrow, which, you know, is our mission. 

And that's the metric that matters. The North Star for us is our funded status. So our investment strategy is very liability aware, and our North Star is the funded status. We are a pension plan, so we invest for the very long term. Our liabilities are long-term, and so we make investment decisions with that in mind, again, with the primary objective of improving plan sustainability. 

One thing I did want to point out is key to MDI is avoiding unnecessary risks. So recognizing we are mature we don't want to take risks unnecessarily. In fact, we only want to pursue risks purposefully and efficiently, striving for resilience. 

We also take a total portfolio approach, and I know that's becoming very, very popular now; people are talking about it a lot. We were an early adopter, and why I think that's so important is it breaks down silos within the overall organization. That's not just within the Investment division, but across the entire organization. It does recognize that risk is a scarce resource and it has to be shared, and as I mentioned, has to be taken purposefully and efficiently. It supports agility, which is really important, especially in the private markets, and it ensures alignment, and our alignment is within the overall organization, towards overall improvement of plan sustainability. 

So with that in mind, and then, you know, looking over the past 10 years, I think our MBI strategy has performed very well. We have a 6.7% rate of return over that 10-year period, which is above the return that we would need to preserve pensions today and or pay patients today and preserve pensions for tomorrow. And it's also ensured that we have remained fully funded. 

In fact, we're fully funded for the 17th consecutive year, as you would know from our funded status report. But perhaps what's not as well understood is we're the best funded we've ever been in history, in the history of the plan, going all the way back 30 years. And we've been able to reduce our discount rate to 2.8%, the lowest it's been in that 30-year period. And that's a real rate of return, so we've been able to build margins, and that adds conservatism to our overall plan. 

Now, one thing that's key to our MDI strategy is that we purposefully overweight illiquid assets. We have an abundance of liquidity, and we believe by investing in the liquid asset space, we have the best opportunities for value creation, and we get to harvest illiquidity premium over time. 

Now, all that being said, that's not always going to work in any particular year and 2025 is a challenging year for us, primarily because of our illiquid asset exposure. 

If you look at private markets, and in particular, I'm going to call on private equity, the reason we like illiquid markets is our private equity portfolio. Looking back to 2014, which is the numbers I have at hand, we've outperformed public equity by 6.2% per year, and over the last 10 years, it's been by more than 7% a year. That's one of the reasons why we're really in that space. It hasn't been the strongest performer within our illiquid portfolio last year in 2025 returning 4.6% It's also worthwhile noting that that is the lowest private equity return we've had in 12 years, and it's also a reflection of the current market environment where the liquidity is actually being penalized, and where there has not been a lot of deal flow and and what you're seeing is what I believe is a correction in the private markets in time, instead of in price. 

And that's a term we use in public markets all the time but I think it's actually appropriate in private markets as well. And if you do look over the last 12 years, in 9 of the past 12 years, our private equity asset class has achieved double-digit returns, with the highest return being in 2021 with a 52.2% rate of return. So that's one of the reasons why I like private equity and private market assets. But as I mentioned, they've been challenged. 

Let me talk very briefly about infrastructure, which has also been challenged, a 1.9% rate of return, which is low, lower than what we would expect in that particular asset class. But I got to put it in the context of the kind of returns we've had historically. And again, what's been going on in overall markets in 2021 and 2022 our infrastructure returns were 33% and 21.1% respectively. But again, deal activities literally ground to a halt, and we have a large exposure to renewables, and renewables have fallen out of favor. Part of that is an oversupply, but higher, longer-term interest rates also weigh on that particular sector of the infrastructure asset class as well. 

I do believe that renewables will recover and do very well. The energy challenges that we have and the need for more energy are not going away, and renewables are a solution, but it's just a period in time where it hasn't been working as well as it has historically. 

Probably the one you want me to touch on most is real estate, so maybe I'll weigh in a little bit of that. If you look at our overall investment returns and those of our peers, over the last several years, real estate has been a really challenging asset class, and we really reflected that in our 2025 results with a minus 8.5% rate of return. And so why is that happening? I think for us anyway, it's a function of the asset class in general, but it's also because we had some exposure to development assets which we had acquired before or around the time of COVID and things happened in the market that made development really, really challenging. 

One of the things that you had was supply-side, shocks and the cost of materials for construction went up. The cost of labor went up when COVID hit. You had problems. Can you imagine, you know, trying to pour concrete flooring and you have to socially distance by six feet with people that you're actually constructed in the building with so you have had challenges there. Then we know what happened in the office sector, and we know that the retail sector was challenged as well. 

Now we, earlier in this decade, benefited in our real estate portfolio by being overweight multi-residential and industrial that served us very, very well, and our long-term returns in real estate have been very strong. But what's happened is these development assets have been problematic for us, and we really reflected that in our real estate returns this year. 

So we're working through those challenges. And you know, we're optimistic that this is a great asset class for us to own. It continues to turn out great cash flow, is a good inflation hedge, relatively stable, but we are making some changes in how we think about investing in our liquid assets. So happy to share more about that in just a few minutes, if you want to dig in more on our approach to TPA.

But within, within the overall portfolio, what was the shining star? Our liquid portfolio, and our liquid portfolio did particularly well, primarily because of our exposure to gold and to equities. But it's more than that. 

Last year, we made a strategic change in the way we manage our liquid assets. You may recall that our liquid portfolio acts like a completion portfolio. And so we look at the overall risk profile we get from our illiquid assets, we look at what we need for our plan liabilities and what's happening in the macroeconomic environment, and adjust the liquid markets allocations accordingly. The team has a lot of flexibility there, they can do so within the illiquid asset space, they can go to where they think the best opportunities lie at any particular point line. We did not have a lot of credit exposure. We did, instead, choose to be in equities and in commodities, mostly gold, that, as I mentioned, did serve us particularly well. 

One thing that doesn't actually get reflected when you look at the returns in our liquid portfolio, to the extent that it probably should, because returns don't tell the story, and that's our bond portfolio. We have a significant portion of the portfolio and longer maturity government bonds. That's by design. That's our liability hedge portfolio that reflects our plan maturity, and it goes directly to our metric that matters, our North Star, which is the funded status. 

To the extent that you know interest rates go up, you will have disappointing performance in your long bond portfolio, but you will also have reduced liabilities, and similarly, when the opposite happens. So, we do view that as a stabilizer in the overall portfolio, and are willing to tolerate some drag on returns as a result of holding those assets. So I'm going to pause there, because I'm sure you want to dig in a little bit more.

James covered it well and I began by asking him in public equities if they use the MSCI ACWI Index and he responded:

I don't want to say we're benchmark agnostic. We do pay attention to what the indices are doing, because in many cases, we are getting our public equity exposure through index positions, but we're quite dynamic in that space. And as I mentioned, the public markets team, which is our liquid asset class team, or what we call our total portfolio management team, they can move things around quite significantly, and they can do so with a great amount of agility. 

So, last year, we reduced our exposure early on in the first quarter of 2025, and we did use the opportunity to add to our equity exposure once we got a clearer sense of where the tariff situation was appearing to land. 

And so we did the same thing throughout the course of the years. We've had exposures as high as 7% in gold and then as low as 3% in gold. So the team is quite dynamic. There is no gold in our benchmark. We don't think about it that way at all. What we do think about is absolute returns and what we need to pay pensions. 

I told James there used to be a risk-mitigation portfolio at OPTrust that invested in gold, commodities, USD, etc. and asked if that's still in place. 

He replied:

We still think about it that way, but we report in a way that we thought was simpler. There was some confusion around thinking about risk within the risk mitigation portfolio, not recognizing that our overall funded status and the volatility that funded status depends on all of the assets that are in the portfolio. 

So given that our goal is stability and sustainability of the plan, we thought calling a one small segment of the portfolio, which is about 10% of the assets, and saying that represents the risk mitigation portfolio, was probably not telling the full story, but the concept is still there. 

Gold is still viewed as a risk mitigation asset. Our liability hedge portfolio was viewed as a risk-mitigating asset, but we didn't call it that specifically within our risk mitigation portfolio historically. So that's why we report on that slightly differently 

So, the completion portfolio is not the risk mitigation portfolio? He answered:

No, but what it is designed to do is it's designed to complete the overall risk profile of the portfolio. So think of it this way, if there are no opportunities that are presenting themselves in the illiquid asset space, or if we can't get the risk factor exposure that we want in our illiquid asset space, we'll go to the liquid asset space and look for those opportunities. 

So if our private equity portfolio exposure is dropping, we would be adding public equities to the portfolio, assuming we still wanted that equity or that growth risk factor in the overall portfolio. You got you 

 I asked James if it's still 50/50 public /private now and he replied:

It's very close to that, as I say, that the public market equities have moved around, given the volatility over 2025, but if you look at it in general, we're probably somewhere around 15 to 18% on average, sometimes a little bit lower than 15 in public equities, and our private equities are around 17- 18% as well.

On Credit, James shared some very interesting insights: 

We're not big in private credit. I have some concerns with private credit. I think it's my view personally. I realize it's it's been a desirable asset class. You know, in many ways, it's disintermediated in the banks. Its growth has been driven by changes in regulatory policy, but it seems to be overhyped. I mean, I go to conferences, and that's all everybody's talking about, so it's an area that I've avoided.  

The other thing to keep in mind is the way we approach our private market assets; the teams can invest across the capital stack. So if there is a better opportunity in the credit space than there is in the equity space, they can take advantage of that. But we do not have an allocation. I don't have a core allocation to our sort of long-term acceptable risk portfolio, and it's not something that we would target when we sit look at the overall environment, say, 'Yeah, we want to, you know, we want to move 5% from here to there'. It's very opportunistic.

He added:

Where we do have credit exposure, which is minimal, in the public space, we would tend to do it either through CDX or through external managers, but in the private market space, to be very unique, would be specific to a particular deal. 

We then shifted to sustainable investing where James had this to share:

There's been a lot going on, as you are probably aware in the last several years on the responsible investing side of things, and so we've approached this in a couple of ways. First, we wanted to get metrics in place, which we did earlier, a few years ago, and then we had set what we felt was a pretty ambitious objective to reduce our overall carbon footprint. Which we did, we had reduced it between 2023 and 2024 I think, by 23% and we've continued our progress in responsible investing, but more with a focus on gathering data from our portfolio companies and from our partners.

For us to advance further and to have more influence and impact within our overall portfolio, we have to work with our partners, and we have to have data. So we need much more evidence-based and data-driven in our overall climate change strategy. So that's been the focus. 

We've also launched a taxonomy, a climate change taxonomy, which, to me, I think is really special. It's not focused on numbers. And quite frankly, I think, you know, focusing too much on numbers in the climate space can be misleading, but what it does tell you is what exposures we have in the plan, what assets in the plan are most exposed, and what assets are doing something about it. 

And so it's qualitative, but it does help us to identify at a higher level where the largest risks are within the plan and what we might where we might want to engage more so we continue to try to improve. It's our mantra of excellence and continuous improvement. We try to do that across the portfolio, but climate change.

I told him the federal government is trying to open up more opportunities in infrastructure investing and asked if that is something that interests OPTrust. 

He replied: 

For sure? We do have a significant exposure to Canada already, more than a third of the fund of I think it's about 36% or something, of the fund is in Canada right now. And there's nothing that would make me happier than to invest more and more in Canada if we could find the opportunities. And so the fact that the government is working with the pension plans and the private sector to try to make the environment more friendly for long-term capital investment. This is a wonderful thing.  

And if you think about Ontario as a whole, I mean, our members are in Ontario, the benefits that they are getting, they're spending that money in Ontario. So this is the economic benefit. Regardless of where those returns come from, they're going to go into our members' hands, and they're going to get multiplied throughout the overall economy. 

Wouldn't it even be better, the extent that we could get even more assets here? But it has to make sense. It has to make sense for us. And so to the extent that we can support government and policy makers to make a better environment for investing in Canada. You know, we're all over that.  

On membership, James shared this:

It's growing, I mean, it's partly in the public service. You're not expecting the same degree of growth, especially, you know, in this kind of an environment, but we are seeing both membership is improving, and that's a positive for us, but we are mindful. We are a mature plan, and we do have more retirees and deferred retirees than we do active members, and that's not going to change for some time. 

Lastly, we spoke about the challenges in private equity where I noted there's enormous competition there and across the private markets so maybe there is a structural change going on, and it will be increasingly harder to harvest returns of the past there.

James replied:

To start with, let me say that I remain very confident in the ability of that asset class to perform well. I would call out that there remains a lot of dry powder, a lot of investors are still looking to move into that space. 

As I mentioned, I think the market is correcting more in time than it is in price. I think some further correction in price would probably be welcome, because I think it would help unfreeze the market and improve/ move deal activity. So that'd be number one. 

Number two, we know that there is a move afoot to private markets, to other investors, whether it's over 401K or other retail-type investors in the United States, that will provide another source of demand. I'm not sure how it will impact overall returns and whether certain segments of the market will do worse or better, but it is an additional source of returns. 

The third thing, which I think is important, though, and I don't hear a whole lot about it, is to what degree will tokenization and the blockchain potentially impact the private markets. I think there is something there. I think we will begin to see assets slowly going on the blockchain, and there will be more price discovery, more price transparency. What I don't know, though, is, does that destroy the information asymmetry that you have now in that space. 

And I mean, that's where the value creation, that's a huge part of the value creation, is that you know your first call, and you've got access to deals, or you just happen to be you have great relationships in that space where you see things that others would not, and you're able to capitalize them on them. But if the market becomes more symmetric and more transparent, then that opportunity is going to go away.

Great food for thought, I always enjoy speaking with James, he's a really sharp and experienced CIO who has dabbled in meteorology in the past.

Alright, let me thank James and Jason once again. It was a really long week for me with back-to-back interviews and coverage and I need to rest.

Below, a member profile from OPTrust. Also, Audrey Forbes, Member Experience and Pension Operations, OPTrust who retired in June 2023, discusses the importance of taking care of members:

“I’m passionate about pensions because the vast majority of the people the industry serves could otherwise fall through the cracks without a pension. Many of these individuals could end up in poverty at retirement.

That’s why I love the public sector pension model—it provides financial security for many people who wouldn’t typically achieve it. In many ways, it’s an equalizer in the workplace, irrespective of colour, ethnicity or other demographic factors.”

Shes’s absolutely right. Remember, it's all about members, that's why pensions exist to take care of their members. 

James Bradshaw of the Globe and Mail reports HOOPP rides stocks to 7.7% gain as market turbulence weighs on private assets:

The Healthcare of Ontario Pension Plan leaned heavily on strong stock markets to report a 7.7-per-cent investment gain last year, even as returns from private markets were sluggish against a turbulent economic backdrop.

HOOPP’s one-year results trailed the benchmark return that the plan uses to measure its performance, which was 8.6 per cent. That relative underperformance was partly attributed to challenges with two specific investments – one in infrastructure and another in private credit.

But a 22.2-per-cent return from HOOPP’s portfolio of publicly traded stocks, which it bulked up last year after U.S. President Donald Trump announced broad and punitive tariffs, kept the plan’s investment gains near their longer-term average.

Over 10 years, HOOPP’s average annual return was 7.8 per cent.

Net assets increased to $132-billion last year, from $123-billion a year earlier. The plan is 109-per-cent funded, meaning it has $1.09 for every dollar it expects to pay out in pensions.

The fallout from tariffs and a period of high inflation undermined some of the bedrock economic assumptions that long-term investors such as pension plans have relied on for years. At the same time, valuations for private assets such as real estate and private equity came under pressure as buyers and sellers struggled to agree on prices and deal-making slowed.

“It was obviously a year full of lots of complexity,” HOOPP chief executive officer Annesley Wallace said in an interview. “Particularly in that context, we feel good about the 7.7-per-cent return.”

HOOPP invests on behalf of more than 504,000 members and 870 employers in Ontario’s health care sector, including nurses, medical technicians and, more recently, physicians.

In infrastructure – typically one of the most stable asset classes, producing steady cash flows – a single HOOPP investment in the U.S. renewable energy sector ran into problems. That dragged down the portfolio’s return, which was 1.8 per cent last year, underscoring the volatility in renewable energy after the Trump administration reversed course on climate policies and offshore wind development.

HOOPP did not name the problematic infrastructure investment.

Similarly, in private credit, HOOPP’s 0.9-per-cent annual return was hampered by “issuer-specific performance challenges in a single credit investment,” according to the pension plan’s annual report released on Tuesday.

Investors have been jittery about private credit as a number of lenders have grappled with ways to meet clients’ requests for redemptions, most recently U.S. giants such as Blue Owl Capital Inc. and Blackstone Inc.

“We see opportunity in private credit,” Ms. Wallace said, but she emphasized the importance of “being disciplined” about where to make loans.

All of HOOPP’s portfolios of private assets ended the year with positive returns, with private equity gaining 3.6 per cent and real estate up 1.1 per cent.

The pension plan ended 2025 with 49 per cent of its assets invested in Canada and 29 per cent in the United States.

Ms. Wallace said the plan is keen to make more Canadian-based investments if the right deals are available, some of which might be smaller in scale and faster to get off the ground than the major, nation-building projects that the federal government has flagged for fast-track approvals.

“There’s lots of active discussions,” she said.

HOOPP is also defe`nding a years-long dispute with Dutch tax authorities over transactions in the Netherlands from 2013 to 2018. A Dutch court ruled that HOOPP wrongly claimed about $340-million of dividend tax refunds through a trading strategy that took advantage of the pension fund’s favourable tax status in the country. HOOPP is appealing the decision.

“We continue to defend ourselves against those allegations,” Ms. Wallace said. “We have very strong governance and risk management.”

In recent weeks, the Caisse de dépôt et placement du Québec reported a 9.3-per-cent gain for 2025, the Ontario Municipal Employees Retirement System (OMERS) was up 6 per cent and Ontario Teachers’ Pension Plan reported a 6.7-per-cent return on Tuesday. 

On Tuesday, HOOPP announced it delivered strong 2025 results for Ontario’s healthcare community:

• Net assets reach $132 billion, with nearly half invested in Canada, and membership now exceeding 500,000

TORONTO, March 10, 2026 — The Healthcare of Ontario Pension Plan’s net assets grew to $132 billion at the end of 2025, up from $123 billion at the end of 2024. The Fund’s net return was 7.7%, and net investment income was $9.7 billion. The Plan’s funded status was 109% at the end of the year, underscoring its financial resilience and long-term ability to meet pension commitments to Ontario’s healthcare community.

HOOPP’s 10-year annualized net return was 7.8%, exceeding its 10-year benchmark of 5.9%, consistent with the absolute long-term returns required to meet the pension promise.

“Our strong results reflect the strength of our foundation, including our scale, disciplined investment approach, independent governance model and, most importantly, our people,” said Annesley Wallace, HOOPP’s President and CEO. “In an increasingly complex investment environment, we remained focused on prudent risk management and long-term value creation. Looking ahead, we are well positioned to protect the Plan’s strength and continue delivering sustainable retirement security for Ontario’s healthcare community.”

Portfolio performance

The 2025 results reflect performance across a diversified portfolio. The Fund maintained significant exposure to public equities and fixed income, supporting liquidity, flexibility and disciplined risk management amid shifting market conditions. Returns were driven by public equities, reflecting resilient corporate earnings and more accommodative monetary policy later in the year. Fixed income delivered stable income and performed well as interest rates declined, with shorter-duration bonds benefiting from rate cuts by the Bank of Canada. Private markets generated positive, though more moderate, returns in a challenging valuation environment.

Investing in Canada

A strategic foundation of HOOPP’s portfolio is its strong domestic presence. Approximately 49% of the Fund is invested in Canada across public equities, fixed income, infrastructure, real estate and private credit. This long-term investment approach supports economic activity at home while maintaining global diversification aligned with HOOPP’s pension obligations.

“Our results reflect the strength of a globally diversified portfolio, with a significant portion invested in Canada,” said Wallace. “We are proud to invest in the communities where our members live and work, while maintaining the global reach and discipline required to deliver on our long-term pension commitments.”

Serving a growing healthcare community

HOOPP surpassed 504,000 members and 870 employers in 2025, reflecting continued growth across Ontario’s healthcare sector. During the year, the Plan welcomed The Hospital for Sick Children (SickKids), achieving 100% participation across Ontario hospitals and expanded eligibility to incorporated physicians. In 2025, HOOPP paid out $4.1 billion in pension benefits, providing dependable retirement income and generating meaningful economic activity across Ontario.

Strategic progress

In 2025, HOOPP launched its 2030 Strategic Plan, a forward-looking roadmap focused on strengthening retirement security for Ontario’s healthcare community in an increasingly complex global environment. The strategy advances HOOPP’s vision of building a stronger financial future for members while maintaining a secure and sustainable Plan. The strategy sets out three priorities: maximizing value for members, improving the adaptability and resilience of the portfolio and evolving with Ontario’s healthcare community. It is an ambitious roadmap that strengthens HOOPP’s foundation today while preparing the Plan for the opportunities and challenges of tomorrow.

2025 financial highlights

• Net assets: $132 billion
• Net return: 7.7% (5.3% real return)
• Net investment income: $9.7 billion
• 10-year annualized net return: 7.8%
• Funded status: 109%
• Canadian investments: 49% of portfolio
• Carbon footprint reduced by 37% compared to 2021 baseline
• Membership: 504,000+ members, 870+ employers
• Pension benefits paid: $4.1 billion
• Cost-of-living adjustment (COLA): 100% CPI granted for eligible service
• Contribution rates unchanged since 2004: 6.9% on earnings up to the Year’s Maximum Pensionable Earnings (YMPE) and 9.2% on earnings above the YMPE

The full 2025 Annual Report is available at Plan performance.

About the Healthcare of Ontario Pension Plan

HOOPP serves Ontario's hospital and community-based healthcare sector, with more than 870 participating employers. Its membership includes nurses, medical technicians, food services staff, housekeeping staff, physicians and many others who provide valued healthcare services. In total, HOOPP has more than 504,000 active, deferred and retired members.

HOOPP is fully funded and manages a highly diversified portfolio of $132 billion in assets that span multiple geographies and asset classes. HOOPP is also a major contributor to the Canadian economy, paying more than $4.1 billion in pension benefits annually.

HOOPP operates as a private independent trust, and its Board of Trustees governs the Plan and Fund, focusing on HOOPP's mission to deliver on our pension promise. The Board is made up of appointees from the Ontario Hospital Association (OHA) and four unions: the Ontario Nurses' Association (ONA), the Canadian Union of Public Employees (CUPE), the Ontario Public Service Employees' Union (OPSEU) and the Service Employees International Union (SEIU). This governance model provides representation from both employers and members in support of the long-term interests of the Plan.

Please take the time to read HOOPP's 2025 annual report here and highlights for members here.

Below is the table of contents for the annual report:

 

I think it's worth reading Chair Anthony Dale and Vice-Chair Dan Anderson's message:

 

I note the following:

Both the healthcare and investment landscapes continue to evolve amid significant and ongoing changes. Demand for healthcare services across Ontario is steadily increasing, shaped by demographic shifts and growing complexity of care. At the same time, the global economy continues to be shaped by persistent inflationary pressures, heightened geopolitical risk and accelerated technological disruption. In this environment, HOOPP’s long‑term focus, agility and organizational stability are more important than ever.

Throughout 2025, the Board played a pivotal role in ensuring HOOPP continued to adapt and meet future needs. The launch of HOOPP’s 2030 Strategic Plan marked an important milestone. Developed with contributions from the Board and employees across the organization, the plan sets a clear direction for the next five years. It ensures HOOPP will continue to evolve alongside the healthcare sector it serves, so the Plan remains resilient, responsive and aligned with the needs of current and future members. 

As well as this: 

In early 2025, the Board appointed Annesley Wallace as HOOPP’s President and Chief Executive Officer and supported her seamless onboarding, ensuring strong continuity in executive leadership and positioning the organization for continued success. Annesley brings a distinguished track record of leadership in investment management and pension administration and is well equipped to advance HOOPP’s mandate of delivering secure, lifelong pensions to Ontario’s healthcare workers. 

The Board is confident that, under Annesley’s leadership, HOOPP’s strategy, governance framework and dedicated team will continue to effectively navigate future opportunities and challenges, while safeguarding and enhancing the value of the Plan. 

The Board also extends its sincere gratitude to Jeff Wendling, who retired in 2025 after more than 26 years of dedicated service to HOOPP, including five years as President and Chief Executive Officer. Under Jeff’s leadership, the Plan maintained a strong funded status, navigated significant market challenges and maintained stable contribution rates while enhancing member benefits. 

Next, read CEO Annesley Wallace's message:

 

I note the following:

The launch of HOOPP’s 2030 Strategic Plan marks the beginning of an important new chapter in our journey. Built on decades of financial strength and operational discipline, the strategic plan provides a roadmap for navigating an increasingly complex world while
remaining focused on delivering retirement security for our members.

The strategy is anchored by three core pillars: 

•  Maximizing the value of the Plan for members by enhancing the benefits and services that matter most, while recognizing today’s realities.
• Improving the resilience and adaptability of the portfolio through a Total Portfolio Approach (TPA) to investing that balances long‑term returns with flexibility in a rapidly changing environment. 
• Evolving with Ontario’s healthcare community by thoughtfully growing our membership and ensuring HOOPP remains the pension plan of choice for healthcare workers and employers across the province.

Maximizing the value of the Plan for members

HOOPP’s strong funded position enabled us to provide a full cost‑of‑living adjustment for 2024, helping retired members maintain their standard of living amid rising costs. We also maintained contribution rates that are among the lowest of Canada’s major pension plans.

In June, we announced that these rates will remain stable until at least the end of 2027, extending a remarkable record of unchanged rates since 2004. This long‑term stability remains one of the most meaningful ways we support affordability, predictability and retirement confidence for both members and employers.

Improving the resilience and adaptability of the portfolio

As higher interest rates, geopolitical shifts and technological change reshape global markets, we are evolving how we invest. Our transition to TPA reflects an evolution in how we allocate capital and manage risk across the Fund. This more integrated and flexible
framework strengthens decision making, improves our ability to respond to changes and supports sustainable long‑term value creation, ensuring the portfolio remains resilient through market cycles.

Evolving with Ontario’s healthcare community

2025 was a period of meaningful growth for HOOPP. We welcomed our 500,000th member, a milestone that reflects the continued strength of the Plan. Earlier in the year, Waterloo Regional Health Network expanded HOOPP eligibility to allow all employees to join the Plan, demonstrating the Plan’s growing reach. This momentum continued with The Hospital for Sick Children (SickKids) joining HOOPP effective December 29, 2025. This was a significant achievement that means all hospitals in Ontario are now part of the Plan.

HOOPP employer —The Hospital for Sick Children, Toronto HOOPP employer — Centenary Hospital, Scarborough Health Network. Our network of participating healthcare employers has expanded to more than 870 across the province, including eligible incorporated physicians and their employees. Each new member and employer reinforces the value of a collective approach to retirement security and demonstrates that our strategy is working: expanding access, supporting those who care for others and building a stronger financial future for Ontario’s healthcare community.

Now, some high-level comments before I get to the discussion with Michael and Reena.

Clearly the 20230 strategic plan is critically important, so take the time to understand it: 

 The other thing that is important to note is HOOPP formalized its total portfolio approach (TPA) last year:

Now, in terms of total fund investment performance, HOOPP underperformed its benchmark in 2025 (7.7% vs 8.6%) but it's best to gauge it over the long term (10-year net annualized return of 7.8% vs benchmark of 5.9%):

In terms of asset class returns, all of them contributed positively last year:

The asset allocation is clearly weighted to capital markets (ie. public markets and a large exposure to Canada):

Interestingly, I didn't see a detailed breakdown of assets by asset class as of Dec 30th 2025 which is odd, but the HOOPP's Statement of Investment Principles and Procedures gives you the asset mix targets and ranges:

 

Still, I highly recommend that HOOPP follows best practices and posts its detailed asset mix as of the end of the calendar year, just like OTPP and others do (if I missed it, my bad).

The key thing to remember is HOOPP has a large fixed income portfolio and is more geared to public than private markets and has a lot more Canadian exposure than its peers (mostly owing to its fixed income portfolio). 

And asset mix is the main driver of performance.

What else is worth noting? As shown below, HOOPP’s ratio of active to retired members declined gradually from 2.5 in 2005 to 2.2 in 2015 and remained unchanged at 2.2 at the end of 2025:

While the ratio has declined since 2005, HOOPP remains a relatively young plan relative to its peers.

Lastly, looking at HOOPP's Board, I see a few familiar faces like Debra Alves (former CEO at CBC Pension Plan), Julie Cays (former CIO at CAAT Pension Plan), Poul Winslow (former Senior MD and Global Head of Capital Markets & Factor Investing at CPP Investments) and John Sinclair (former CEO at Vestcor): 

In short, HOOPP definitely has a very strong board of directors and good mix of experienced investment professionals and union representatives.

A strong Board is key to good governance. 

On governance, the only thing I'd like to see is more transparency at HOOPP.

For example, HOOPP is the only Maple 8 fund that does not publish a comprehensive compensation section in its annual report, going over what board directors make and what senior pension executives get compensated.

HOOPP will argue it's a private trust and doesn't need to disclose this information but I would argue its members and the public deserve to know exactly how much people are being compensated there since ultimately taxpayers backstop this pension plan if something goes wrong.

Anyway, there is a lot of great information in the annual report, but I'm a stickler for transparency at all our large Canadian pensions, the more transparency, the better.

Discussion With Reena Carter and Michael Wissell

Alright, long preamble to my discussion with CFO Reena Carter and CIO Michael Wissell but the information above situates my readers well for the discussion below.

I want to thank Reena and Michael for taking the time to speak to me, and also thank Scott White for setting up the virtual meeting.

It was the first time I spoke to Reena. I want to apologize for calling her Rita during the meeting (I'm an idiot!) and make up for it by publicly apologizing and giving my readers a good background on her:

Reena Carter joined HOOPP in 2025 as Chief Financial Officer, bringing over 20 years of financial leadership experience within Canada’s pension industry.

Prior to joining HOOPP, Reena was Senior Managing Director of Portfolio Management and Operations at OMERS where she led all operational functions, portfolio construction and the sustainable investing strategy for OMERS Infrastructure globally. Before that, she served as Executive Vice President, Investment Finance & Valuations and Global Head of Assurance & Advisory, overseeing financial reporting, valuations, planning and internal audit for OMERS.

Reena also spent 13 years with Borealis Infrastructure where she held progressively senior finance roles, including Chief Financial Officer, managing key corporate functions and supporting global investment initiatives. She began her career at KPMG, working in both the assurance and advisory practices.

Reena has served on several boards and is currently on the board of Cymbria Corporation. She holds a Bachelor of Business Administration degree from the Schulich School of Business, York University and is a Chartered Professional Accountant, a Chartered Accountant, a Chartered Business Valuator and a Chartered Director.

Super nice and sharp lady who only began working at HOOPP in August. Glad to have met her.

I began by asking Michael to give me an overview of 2025 results which he did:

First and foremost, the point we always like to make is we are not in the money management business; we are in the pension delivery business. The plan is fully funded for the 16th year which we're really happy about. We feel that we have a good return, a solid return at 7.7%, but being fully funded is really what we're focused on. And that's three decent years in a row coming down with COVID. So that worked out well.  I think that strong returns in our public equity books. I returned to the fact that, as you can tell from the marketplace, some of the privates are struggling. We're pleased that all of our privates were positive. Everything was positive, albeit not necessarily super, super positive, but on the right side of the ledger. And public or public markets portfolios continued to do pretty well last year, with a 22% return in public equity, which really carried the day for us in a bunch of ways. And our bond books kind of, again, crawling out a couple of percentage points as well help to the overall return. So fully funded, decent year are the key things. 

Reena added some perspective on the member side, stating HOOPP welcomed its 500,000th member, the Waterloo Regional Health Network expanded HOOPP eligibility and The Hospital for Sick
Children (SickKids) joined HOOPP at the end of last year. 

I noted HOOPP's public equity performance was really strong last year -- 22% -- trouncing most of its peers (but below the S&P/TSX Composite Index’s 32% gain). I asked Michael to explain the outperformance there.

He replied:

We really globally diversified last year. We increased our diversification, moving a little bit away from MSCI ACWI which we never really follow. We diversified a little bit more, and we added a little bit in as well, so that that also helped. From peak to trough to peak, there was quite a big rip in degrees when you account for April. So I would say better global diversification and adding into the sell-off, which was an interesting experience for us because our incoming CEO, Ainsley, had only been on the job literally days and was right there with us, supporting us as we were looking to take advantage of that opportunity. So she jumped into the frame and really contributed to helping us capitalize on that opportunity. 

It always helps when the new CEO supports the investment team during turbulent times.

As Michael explained, HOOPP didn't shift out of US equities into all Canadian equities when Liberation Day hit; they just diversified more globally.  "We had more countries, so Australia and Canada, we added Japan, we added Europe, and we took the US down."

I then noted HOOPP has a massive fixed income portfolio and asked Michael to explain their approach there and why it's so important.

He replied:

We still have a liability-aware investment strategy. We want to own fixed income for risk-off environments and for when the discount rate is brought low by lower interest rates, if that regime was ever to show up. But at the same time, we want to protect ourselves against an inflationary world. And that's why what makes HOOPP a little bit unique is the quantum of real return bonds. We are still of the size that we can maintain a very high proportion of our bond portfolio in real return bonds and that's what we continue to do here. We grew our proportion (in real return bonds) a little bit up to 20% which is in the annual report. But most of that would have been buying TIPS (US Treasury Inflation Protection Securities) because we weren't able to buy RRBs in Canada. As you know, those options are no longer prevalent. We continue to hope that they will return at some point, but absent having access to those in size, we did add some TIPS to the portfolio. And that's really to keep that real / nominal mix appropriately balanced, so that you've got a hedge that helps you if something blows up, but not so much nominal that you get into trouble if inflation becomes a concern. 

I asked Michael and Reena to give me some flavour on private markets and Reena responded: 

As you noted, private markets were positive. We delivered a billion dollars of income across those private market strategies. And we're also probably unique in that we have less allocation to private markets, so only 35% in private markets and the rest in capital markets (public markets). From that perspective, the private equity story is quite similar other plans; we're seeing they had similar issues from a valuation perspective. There's less in the market, so we're making impact. From that perspective, real estate, similar story, although I think we see some improvement across certain sectors starting to pick up, like Office, but we're still, it's still struggling, or at least it was to the end of 2025. I think our infrastructure was a bit different. We did have one specific asset that returned down, but overall that portfolio is quite resilient. 

She told me the asset that got hit in Infrastructure was a renewable energy asset in the US and given policy changes there, that asset was marked down significantly.

I told Michael that I read all about the total portfolio approach in the annual report and asked him to give me more context:

You've been following this evolution in the pension industry for years. I'm a big believer in this. I've never been big on SAA  (strategic asset allocation). I'm not sure exactly what magic weights work through the full economic cycle. So we're really embracing the idea of having a coordinated portfolio, where, rather than saying, XYZ private asset, here's a bucket, go fill it, working with them, and say, what are the characteristics of the assets that we really need at the total portfolio level and then being adaptable when when something goes up in the net or, or something gets overtly expensive and adjusting our weight. 

We're big fans of this total portfolio approach. It's an integrated and adaptable strategy, rather than sort of being rigid around some sort of SAA approach. It requires the complete and full support of our board and strong governance. And I would say that's very much in place, and I feel very good about it.

 He added:

We're just sort of formalizing that now under this nomenclature, but in my mind, it's nothing new. It's formalized in something new but I would say it's really been a part of what's made us successful over the long and medium term. And we're just going to continue on with that.

I agreed that in order for the total portfolio approach to work well, you need the right governance and the right compensation system that aligns incentives with total portfolio return objectives.

Reena jumped in:

We think that's correct. When I started on the 31st of August last year, and coming in, it is a very different approach because TPA was not being fully implemented; it's very different. I think we do look at things at a total fund level and look at opportunities as they come.

Michael added:

It's safe to say that we are increasingly focused on total fund return from a compensation perspective as well. We want to align with our members, we want to align with our sponsors. And so just to your point, you need all of these elements pulling together, and this has been a big lift. And we think we're really well positioned to take advantage of the opportunities that the markets are going to present to us over the next several years.

On the 2030 strategy, Reena gave me more flavour on what Annesley is looking for:

She is really pulling on growing the three pillars that have been highlighted in the strategy. So our members, our portfolio and returns, and then the community itself. So it's really who's also unique in that we're growing plan and really leaning into that. I think that that's one thing that we've talked a lot about, and also just focusing back on what are we really delivering for the fund? It comes down to, we need to deliver 4.5% to 6.5%  real returns to be able to pay pensions. So that was really something that I think shifted in terms of our focus. Obviously, we do look at benchmarks and how we compare on a relative basis, but that focus on looking at real returns is something that we're working through, making sure that we stay fully funded.

I noted Chantale Pelletier was appointed as the new Head of Global Infrastructure at the beginning of the year and said it's too soon for a new strategy there but wondedred if they're discussing anything new in infrastructure.

Michael responded:

She was a part of the delegation that went to Australia very recently. You may have seen with the Australian Prime Minister. She represented us well, as we signed along with the peer plans that cooperation agreement. It was great to have her be a part of that. I would say, Chantale is coming in and and we're pretty much assessing all of our individual strategies. We don't think big changes are coming, but we only started infrastructure in 2019, so we still have dry powder in that area.

In particular, regulated Canadian assets, where they're made available, are something we're ready, willing, and able to look at. We want to make sure that we're ready and focused on that. 

I do believe, after a period of time when there weren't a lot of those (infrastructure) assets in Canada to really consider that we're going to see more of them over the next year or two. And HOOPP is going to look at all of those, as well as all the other peer plans. 

I think we all see the value of those made in Canada investment opportunities where you don't take foreign exchange risk, where you understand the political climate, where you understand the legal framework, particularly regulated assets,  where you might need some inflation protection. These kinds of assets look particularly compelling to HOOPP because we endeavor to pay COLA (cost of living adjustment). So we're always very careful and focused on the advent of an inflation regime, and making sure we're protecting ourselves against that. 

I told him I hope he's right and he added:

I'm pretty confident. I really do sense things will have to move at a thoughtful and careful pace. I mean, you want to make sure you do the right not necessarily do them quick. But I do get the sense that things are moving forward behind this means we're seeing more and more things starting to become available. And it's not just the federal level, the provincial level, and even at the municipal level as well. We think there's going to be various opportunities to participate with our policymakers, and we remain optimistic. So from an infrastructure perspective, to answer your question, I would say we're turning our eye a little bit more domestically, and we're keeping some powder dry, waiting for those opportunities to come in due time.

On F/X risk, I asked if they hedge it completely and Michael told me not completely but they do hedge a lot of it. He and Reena told me the depreciation of the US dollar had a negligible effect on the plan's overall results last year.

I asked Michael if he looks at where HOOPP is now, given where markets are, their domestic exposure, the fact that infrastructure is really just ramping up, would he say they're in a really good position given the uncertain macro and geopolitical environment? 

He replied: 

I actually feel very good about our portfolio right now. We have an incredibly balanced portfolio. I think a good mix, again, between real and nominal bonds.

I think we are very well balanced, which is the secret to navigating these rough times. If you have a balanced portfolio and you're not over the tips of your skis, then when those are anchored, incredibly liquid and focused on liquidity, then you're able to take advantage of the opportunities as they present themselves. 

And so, when I'm looking at the next several years, I think that this portfolio is solid and can hit on required rates of returns. And I think, looking at a year, two years, three years, there may be opportunities that present themselves where you can really lean into something, whether it's domestic infrastructure, or whether private equity becomes more compelling again, or whether it's equities, something above the equities, or bonds back up, or real yields move up higher. 

I mean, you can buy some more of those, because even though these things will always present themselves, but you've got to enter into those opportunities with a balanced portfolio. And that's really where I think we are right now. 

On private credit, I noted JPMorgan restricted this activity today after markdowns, but it all depends on underwriting. I asked whether this is a big portfolio at HOOPP and how they approach it. 

Reena said it was a small portfolio and Michael responded to my question: 

Well, I think you hit the nail on the head; it is all about underwriting. The thing about credit that people have to understand is that it's not broad data. I think that's the problem. People want to think of private credit in terms of good or bad, and the reality is, there are parameters involved. 

You have to be very good at underwriting. HOOPP has been very involved in the credit space for a long period of time. I would say it's one of our core competencies in credit, not just HOOPP for the record, I would say other Maple 8 funds as well. 

We feel really comfortable with our credit underwriting ability and the partners that we've chosen to underwrite credit with. I would say we've been growing our private credit space, but it's been a little bit more cautious over the last few years, as we've been just a little bit careful in terms of growing them. 

It's something given the right risk-reward relationships, we're still ready to participate in. But, you hit the nail on the head. The word is underwriting. You have to underwrite very effectively, choosing the right partners, choosing the right transactions. And we didn't have a great year last year, but over the last several years, we have performed really well. 

It's also the kind of product that suits a pension plan well, trying to get to that 4.5% and 6.5% real that we talked about,. Typically, we can get those targets in a private credit context. So it suits pension plans well, but again, it's just a matter of Reena's point earlier, you just want to make sure you size it right. 

On absolute return strategies, both internal and external, Micahel told me last year was a "great year".

Finally, Reena told me drive for new members is going well and HOOPP is welcoming Ontario doctors to its pension plan, which is excellent news. 

Alright, it's late, I'm just glad the weather hasn’t killed my power yet as we have a major ice storm in Montreal.

I once again thank Michael and Reena for taking the time to talk to me to share all these insights. 

Below, Annesley Wallace, President and Chief Executive Officer, reflects on HOOPP’s 2025 results and a milestone year for the Plan. 

HOOPP surpassed $130 billion in net assets, remained fully funded, expanded access to eligible physicians and their employees and welcomed The Hospital for Sick Children, meaning every hospital in Ontario now offers a HOOPP pension. We also welcomed our 500,000th member.

Watch to learn how they are continuing to invest wisely and deliver on our pension promise to Ontario’s healthcare community.

James Bradshaw of the Globe and Mail reports Ontario Teachers’ Pension Plan earns 6.7% return, marks down private equity and real estate assets:

Ontario Teachers’ Pension Plan earned a 6.7-per-cent return in 2025, but missed its internal benchmark for performance by a wide margin as it marked down struggling private equity and real estate assets.

The plan’s investment gains were bolstered by its publicly traded stock portfolio, which increased in value by 15 per cent, as well as its holdings in gold. Its smaller venture growth arm was up 30 per cent on rising valuations at companies such as Databricks, Inc. and Space Exploration Technologies Corp., which is known as SpaceX.

But Teachers’ private equity portfolio lost 5.3 per cent, against an 18-per-cent benchmark that is weighted toward public stocks. And its real estate portfolio lost 3.1 per cent, as the insolvency of Hudson’s Bay Co. hollowed out valuable real estate in a number of malls the plan owns.

Overall, Teachers fell short of its 11.7-per-cent benchmark by 5 percentage points – a difference of $12-billion of potential investment income.

“The headwinds we’re facing aren’t that different from many of our peers,” chief executive officer Jo Taylor said in an interview on Tuesday. But he acknowledged that Teachers has seen sharply different performance from specific assets, with outperformance on venture bets undercut by weakness in the plan’s private assets.

“When we look back to last year, we made steady progress,” he said. “There were headwinds and there were nice surprises.”

Teachers manages pensions for about 346,000 members in Ontario, including working and retired teachers.

Investments in the software sector have struggled as fears mounted that companies will be disrupted by artificial intelligence. And it has proven “a little harder than you imagine” to squeeze more value out of portfolio companies, with prices for those assets in flux, Mr. Taylor said.

The plan’s real estate portfolio is weighted toward office and retail properties such as malls in Canada, and Teachers has spent years trying to shift new investments toward other sectors and countries.

Foot traffic to offices has recovered from pandemic lows, but Teachers had Hudson’s Bay stores close in 15 of its malls, forcing another rethink of its bet on retail.

One positive for Teachers was that “we were able to sell a number of assets at good prices,” Mr. Taylor said. That included deals to sell five airports in the United Kingdom and Europe, for proceeds of about $8-billion.

Seeing what buyers wanted, and what they were willing to pay, provided a dose of realism about what other assets in the Teachers portfolio might be worth, and how much some needed to be marked down.

On the other hand, the plan’s investment in Elon Musk’s SpaceX – which was the first investment in its $15-billion venture growth arm – looks like a home run as it seeks to raise up to US$50-billion at a US$1.75-trillion valuation through a planned initial public offering.

The potential IPO is not necessarily “a target exit point” for Teachers, said Gillian Brown, the plan’s chief investment officer for public and private investments.

Instead, the team is assessing the company’s future prospects after it acquired Mr. Musk’s xAI, gauging whether it could now be set up for “another potential leg of venture-like growth,” she said.

Looking forward, the two key economic risks that Teachers is monitoring are the potential for higher inflation or slower growth, especially with uncertainty about the fallout from the war in Iran.

“Inflation is the bane of pretty much every portfolio,” said Stephen McLennan, chief investment officer, asset allocation. “Being thoughtful around how you position the portfolio for when a shock happens is very, very important.”

Teachers lost $1.2-billion on foreign currency moves as the U.S. dollar depreciated, but said it softened the impact by managing its currency exposure.

Over 10 years, Teachers has had an average annual return of 6.8 per cent. Its assets increased to $279.4-billion, from $266.3-billion a year earlier. The plan is 111 per cent funded, meaning it has more money on hand than it expects to pay out in pensions to members.

Layan Odeh of Bloomberg also reports Ontario Teachers' posts first private equity loss since 2099:

Ontario Teachers’ Pension Plan is overhauling its approach to investing in private equity after the $200 billion asset manager booked its first loss on that portfolio in 16 years.

After the value of its private equity holdings dropped by about C$10 billion ($7.4 billion) in 2025, the Canadian firm said it will shift its focus in that business to just three sectors: financial services, technology and services. The overall fund still generated a 6.7% return last year, thanks to the rising value of stocks, gold and its investment in Elon Musk’s SpaceX.

“We saw adjustments in software with the AI uncertainty, and we saw adjustments in health care that just had to do with likely an overbuy in the market through a given period that just created more vintage risk,” Gillian Brown, chief investment officer for public and private investments, said in an interview. “I think outside of that, you’re really talking about more idiosyncratic.”

The change means the pension plan no longer has specific teams focusing on health-care investments and the sustainable energy transition within that unit, according to its website. 

“We felt before we were too broad,” Chief Executive Officer Jo Taylor said in the interview. “I wouldn’t honestly say the three that we have today are going to be the only ones we have forever — this is just a for-now type question.” 

The value of Ontario Teachers’ private equity holdings totaled C$50.8 billion at year-end. 

Lowering Valuations

While the executives declined to identify companies that were marked down, Taylor said the pension plan lowered valuations for some investments made in the wake of the pandemic. 

Assets in the fund’s private equity portfolio include dental support firm Abano Healthcare, eye-care services provider Nvision and PhyMed Healthcare Group. Ontario Teachers’ acquired a majority stake in software maker Miratech in 2021 in a deal that valued the firm at more than $1.5 billion. In December, Miratech secured a $2 billion loan from private credit firms led by Blackstone Inc. to refinance a bank loan package.  

The pension plan will continue using external fund managers within private equity, with Jeff Markusson leading the effort as senior managing director of global funds. Third-party funds account for 28% of the private equity portfolio, with direct investments making up most of the rest. 

The private equity team has undergone other changes over the past year, including the appointment of Dale Burgess as head of equities and the addition of a department focused on value creation. Harj Shoan, senior managing director for sustainable energy transition and head of global funds, left the firm, and at least five other senior managers from that unit have departed over the past several months. 

Canada’s largest pension plans are re-evaluating their private equity play books amid rising macroeconomic uncertainty and a difficult climate for deal exits. Ontario Municipal Employees Retirement System, which posted a 2.5% loss for its private equity investments last year, revamped that unit over the past two years, including hiring a new global head, halting direct buyouts in Europe and cutting a team focused on the asset class in Asia. 

“We want to be actively investing in private equity,” Taylor said. “But we have to be self-aware and say, ‘What are we good at and where do we want to spend more of our time and capital going forward?’”

Ontario Teachers’ venture growth portfolio surged 30%, largely because of its stakes in SpaceX and software firm Databricks.

The fund’s overall return, which fell short of the benchmark by 5 percentage points, pushed the Canadian fund’s net assets to C$279.4 billion as of December. 

Ontario Teachers’ real estate group, which is long on Canadian shopping malls, had another tough year, losing 3.1% — partly because of the bankruptcy of department store chain Hudson’s Bay Co.

The fund posted a C$1.2 billion loss from foreign-currency exposure, mostly because of a slump in the US dollar. 

Ontario Teachers’ exposure to the US increased to 38% last year from 33% in 2024, while Canada comprised 31% of investments, down from 36%. 

The pension plan is looking at two sectors in the US: power and transition related activities as well as technology. The fund invested in artificial intelligence firm Anthropic last year. 

Earlier today, Ontario Teachers’ announced positive 2025 results: 

• Achieved a one-year total-fund net return of 6.7%.
• 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 - 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.

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-yearFive-year 10-yearSince InceptionTotal-fund net return6.7%6.6%6.8%9.2%

 

Portfolio Performance by Asset Class (all figures as at December 31)

Fund returns (%)3ActualBenchmarkActualBenchmark 2025202520242024Equity    Public equity15.013.923.225.8Private equity(5.3)18.011.723.7Venture growth30.218.525.829.2 6.116.716.724.8     Fixed income2.62.64.84.8     Inflation sensitive    Commodities27.027.025.225.2Natural resources1.80.013.315.0Inflation hedge(4.7)(4.7)9.89.8 13.613.218.619.1Real assets    Real estate(3.1)2.2(0.7)5.0Infrastructure1.87.89.18.5 (0.4)5.34.97.0     Credit5.84.517.216.8Total-fund net return6.711.79.412.9

 

3 The total-fund net return is calculated after deducting transaction costs, management fees and investment administrative costs. Asset-class returns are calculated before deducting investment administrative costs.

The table below summarizes Ontario Teachers' portfolio mix by asset class for the current and previous year.

Portfolio Performance by Asset Class (all figures as at December 31)

Asset Class$ billions%$ billions% 2025202520242024Equity    Public equity50.018%37.414%Private equity50.819%60.423%Venture growth15.36%10.44% 116.143%108.241%     Fixed income61.823%78.030%     Inflation sensitive    Commodities32.112%28.911%Natural resources12.14%12.55%Inflation hedge11.9 4%12.65% 56.120%54.021%Real assets    Real estate27.910%29.411%Infrastructure34.513%43.217% 62.423%72.628%     Credit38.314%37.214%Absolute return strategies25.29%24.09%Funding and other4(87.3)(32%)(113.1)(43%)Net investments5272.6100%260.9100%

 

4 Includes funding for investments (term debt, bond repurchase agreements, implied funding from derivatives, unsecured funding and liquidity reserves) and overlay strategies that manage the foreign exchange risk for the total fund.

5 Comprises investments less investment-related liabilities. Total net assets of $279.4 billion at December 31, 2025 (2024 - $266.3 billion) include net investments and other net assets and liabilities of $6.8 billion (2024 - $5.4 billion)

Investment highlights

Ontario Teachers’ manages approximately 75% of its assets internally, with a focus on deploying capital into a mix of active and passive strategies around the world.

Transaction highlights in 2025 include:

• Participated in the Series F funding round of Anthropic, the AI safety and research company behind Claude.
• Invested in Darwinbox, a leading cloud-based human resources technology provider in Asia, as part of their latest funding round.
• Acquired Donte Group, a leading dental care platform in Europe, to support growth and innovation in healthcare services.
• Acquired a prime logistics real estate portfolio in Sweden and Denmark alongside partner Fokus Nordic.
• Agreed to acquire our first residential real estate asset in Sweden through a new partnership with Gordion.
• Invested in Grafana Labs, a global leader in open-source observability and monitoring solutions, as part of a funding round to accelerate global expansion.
• Completed our fourth investment into National Highways Infrastructure Trust (NHIT), the Government of India’s nodal agency for national highway development.
• Participated in Quantexa’s Series F investment round, supporting the company’s growth in decision intelligence solutions.
• Led StackAdapt’s latest funding round, supporting the Canada-based company’s growth as a leading programmatic advertising platform.

Realizations from 2025 include:

• Completed the sale of our stakes in Copenhagen, Brussels, Birmingham, Bristol, and London City Airports.
• Reached an agreement to sell Amica Senior Lifestyles, a leading provider of premium senior living residences in Canada.
• Partnered with Ethos Capital, BCI and White Mountains alongside BroadStreet to drive the next chapter of growth.
• Completed the sale of our stake in Diot-Siaci to Ardian, marking an exit from a leading European insurance brokerage group.
• Reached an agreement to sell our remaining stake in future free cash flow from New Gold’s New Afton Mine.
• Completed the sale of Sahyadri Hospitals, a leading healthcare network in India.
• Completed the sale of our majority stake in Sydney Desalination Plant to Utilities Trust of Australia, supporting sustainable water infrastructure in Australia.  

Corporate news

• Chris Goodsir and Bill Butt were appointed to Ontario Teachers’ Pension Plan’s board by the Ontario Teachers’ Federation, with terms commencing January 1, 2026, replacing Gene Lewis and Patti Croft respectively.
• Terry Hickey was appointed as Chief Technology Officer to oversee Ontario Teachers’ enterprise technology activities globally.
• Christopher Metrakos, Dale Burgess and Jenny Hammarlund were appointed Executive Managing Directors for Infrastructure & Natural Resources, Equities, and Real Estate respectively, each responsible for guiding their teams’ global strategy, portfolios and asset management activities.
• Constructively engaged with the federal government to discuss “nation building” projects and the Ontario government to consider large investments meant to bolster economic development. Discussions on investments from Ontario Teachers’ in these projects are ongoing. 
• Achieved a 50% reduction of portfolio carbon emissions intensity in 2025 compared to our 2019 baseline, exceeding our 2025 emissions intensity target.
• Subsequent to year-end, published the 2026-2030 Climate Strategy, which introduced a 2030 target of $70 billion in Climate Transition Aligned (“CTA”) assets, encompassing private market investments in companies that are decarbonizing their operations and those enabling the global energy transition. Over the next five years, our goal is to double our CTA assets from their approximate value of $35 billion6.

Note to Editors: To read our annual report, please click here.

6 As at June 30, 2025, Ontario Teachers' had an estimated $35 billion in the Paris Aligned Reduction Target and Green Assets programs, which is being used as a proxy for our CTA assets.

About Ontario Teachers’

Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of $279.4 billion as at December 31, 2025. Ontario Teachers’ is a fully funded defined benefit pension plan, and it invests in a broad array of asset classes to deliver retirement security for 346,000 working members and pensioners. For more information, visit otpp.com and follow us on LinkedIn. 

Take the time to read OTPP's 2025 annual report here. 

The annual report is comprehensive, well written, and goes over a lot of material.

Below, you will find the table of contents:

 I recommend you read Chair Steve McGirr's message on page 8 where I note the following:

I am pleased to report that the Plan remains fully funded for the 13th consecutive year, delivering a positive investment return in a year marked by continued uncertainty and market volatility. This positive outcome reinforces the soundness of a model built to withstand the types of external pressures that defined 2025.

The Plan’s resilience has been built over time. Since its inception in 1990, the Plan has generated a cumulative investment return of 9.2%, reflecting consistent performance across a range of economic and market conditions. Investment returns now account for approximately 80% of the Plan’s total assets, with contributions from members, the Ontario government and designated employers making up the remaining 20%. This long-term balance, together with a strong surplus, should provide members and sponsors with confidence in the Plan’s ability to pay pensions now and into the future.

Then read CEO Jo Taylor's message on page 10 where I note the following:

In 2025 we earned a total-fund net return of 6.7%, just shy of our 7% annual target. In the year, we generated net investment income of $18.5 billion and grew our net assets to $279.4 billion. With those returns, we remain fully funded for a 13th straight year with a preliminary funding surplus of $31.2 billion.

That performance was driven by double-digit returns from our allocation to gold, with strong returns from our venture growth and public equity portfolios. At the same time, we faced continued headwinds in our private equity and real estate portfolios. Overall, this was a good outcome in a complex and unpredictable investment environment.

That said, our net return trailed our benchmark. Our active programs are designed to consistently deliver excess returns, but this was not the case in 2025. This will be a key focus for improvement in 2026. Other key priorities will be to deploy capital where we have a competitive advantage and to raise our game on value creation to improve the operational performance of the businesses in which we are invested. 

He also notes this on investment highlights:

While our investment activity in private markets was reduced in 2025, we were able to add some exciting new companies to the portfolio. Additions included Anthropic, the company behind the AI-model Claude, and Donte Group, a leading dental care platform in Spain. In our home market, we led StackAdapt’s latest funding round, supporting their growth as a leading programmatic advertising platform.

More significantly, we were also able to sell several investments during the year freeing up capital for new opportunities. One highlight was the sale of our portfolio of five European airports, which returned $8 billion of capital and concluded more than 20 successful years of ownership in that sector. See pages 66–67 for more details on sale of this portfolio.

Another key priority for us is to deliver outstanding service to our members at the right cost. Member satisfaction remains very high, and we received a perfect score from 46% of our members.  

I will also refer you to the Q&A with chief investment officers Gillian Brown and Stephen McLennan on pages 28-29. I note this passage:

Q: 2025 brought headwinds in private markets. Given their importance to the Plan, what shifts, if any, are you making to support performance of the portfolio?

Gillian: Many private asset classes are facing industry-wide sectoral headwinds, and in some cases, asset-specific challenges, that require active hands-on work to address. If you take private equity, for instance, investors across the spectrum, including ourselves, are dealing with a less liquid market for both acquisitions and exits, higher interest rates, and greater competition for the best deals.

As active investors and owners, we are working closely with our companies to build and protect value. Examples of how we are doing that include deepening our value creation capabilities to improve our company’s operational performance, prioritizing investment in areas where we have an edge, and using technology and data more effectively to drive insights and productivity. Read more about how we are increasing value creation
efforts across the portfolio on pages 56–57.

We are also excited to have appointed new leaders in a number of asset classes including Equities (Dale Burgess), Infrastructure & Natural Resources (Christopher Metrakos) and Real Estate (Jenny Hammarlund). All three have a successful track record at Ontario Teachers’, substantial experience investing in private markets and are well placed to oversee successful execution of our investment plan.  

 Now, before I get into my discussion with Jo, Gillian, and Stephen, some high-level comments.

First, OTPP's detailed asset mix:

The key thing here is the fund has 52% of its assets in private markets (PE + venture + natural resources + real estate + infrastructure), and I'm not including private credit embedded in the Credit portfolio.  

Next, let's look at total fund investment performance and by asset class:

 The overall performance was 6.7%, just under the 7% it requires, and 5% less than the benchmark return of 11.7%.

The biggest underperformance came in Private Equity which declined 5.3%, significantly underperforming its benchmark that gained 18%.

Real Estate also declined by 3.1%, underperforming its benchmark which gained 2.2%, and Infrastructure gained 1.8% but underperformed its benchmark of 7.8%.  

When three of the biggest private market asset classes underperform their benchmark by a wide margin and 52% of your assets are there, it detracts from overall performance, especially when Private Equity loses 5% in an odd year since that is the most important private market asset class at Teachers'.

Still, despite the paltry performance in private markets, Teachers' did manage to post a gain of 6.7% last year because of gains in public equities, commodities and venture growth which had an exceptional year.

I believe absolute return strategies also kicked in to help boost overall performance but need to double-check this.

That speaks volumes about the benefits of a diversified portfolio. 

As far as currency losses, I note this from the annual report (page 53): 

In 2025, the fund experienced a foreign currency loss of $1.2 billion, or 0.45% net loss, as assets denominated in foreign currencies depreciated in value when converted back into Canadian dollars.This impact was significantly reduced as a result of our proactive management of our exposure tocurrency markets during the year. 

This loss was primarily driven by the depreciation of the U.S. dollar compared to the Canadian dollar (making our U.S. dollar denominated assets less valuable when converted back into our home currency). The fund’s net exposure to the U.S. dollar is significantly larger than any other foreign currency. 

Not as bad as peers as Teachers' started reducing US Treasuries early in 2025.

Discussion with Jo Taylor, Gillian Brown and Stephen McLennan

Earlier today, I had a Teams meeting with Jo Taylor, Gillian Brown, and Stephen McLennan to go over their 2025 results. 

I want to thank them for taking the time to speak with me and also thank Dan Madge for setting up the virtual meeting. 

Jo began by giving me an overview of the results:

We would look back at 2025 and say this. We're still generating the returns we need to keep the plan well funded. You know, 111% funded. It's a balanced portfolio that's well constituted and resilient to the shocks and challenges the world is serving up, which is very relevant today.

When we look back at the performance, you could see it was a bit of a mixed bag. We had headwinds and challenges in old and new areas. So, old areas, a bit more in real estate and in private equity, but we had pleasant surprises in venture growth and our inflation-sensitive commodities area, which actually came up with the returns we did, which has been pretty close to what we've been trying to generate on a regular basis. 

I think there are other things to say, which I think have allowed us to be quite discerning and prudent as we think about the portfolio very actively, actually, less within the investing side of the market, but more in the divesting side of the market. We sold a number of companies at good prices, our portfolio being probably the ones that are a standalone group, and that allows us to be pretty connected with how buyers see our assets. And actually, what are their issues, what we need to be doing to make our portfolio market-ready, and that's where we have the choice between those companies for the future, or seeing that it's probably the time for us to look for an exit, if we can get the right

And the other thing I would say is we've really tried to build our capability alongside the asset teams, with specialist teams that can help on value creation, value protection and making our portfolio companies exit-ready. So we have a Portfolio Solutions Group which we're building to be able to do that alongside our investment teams, and most importantly, making sure that they get in touch with our thinking as we invest in those businesses, as well as once we're already engaged.

And then that's just to say, the world remains uncertain, and probably where that affects us is thinking about what might be the go-forward, as well as just reacting to things.

And secondly, with the uncertainty that's around -- which you could go back to 2025 around tariffs and Liberation Day and all those questions --  try and see what the opportunity is for segments of the market, geographies and particular companies, in terms of their growth aspects. And that's been, I would say in my own experience, more difficult than perhaps it has been historically, to be accurate, because there's a fair bit of uncertainty around which I think takes more time and more skill to figure out. 

I then separated it out into two areas, private markets being extremely important at Ontario Teachers', were weaker, particularly in private equity. I remember Gillian talking to me about structural changes in private equity. I asked her flat out if Ontario Teachers' took a lot more writedowns last year in private equity to flush it out. Is that a fair assessment?

Gillian replied:

Maybe it's a semantic question, but a couple of things there. One is that we obviously go through the full valuation process every year, which is both internal and with external auditors, and we get opinions on valuations of assets, etc. And so there's no process this year that would be any different from our normal course. I think it points to a couple of things. One, to Jo's point earlier around as you go to market, and as we see assets transacting, you get a better sense of what the market is aimed for or not. And there can be some look-through to other assets you hold. How is the market looking at earnings quality, or how is the market looking at growth potential? How is the market considering platform valuations, whatever that may be. And so we took a good, strong look at our portfolio to see what the impacts could be there. I think those were sort of the factors, more than some view.

I noted that I also saw there was a change in the approach in private equity, focusing on three sectors: financial services, technology and services. I asked Gillian if it's fair to say they'll be doing a lot more fund investing and co-investing going forward.

She responded:

I wouldn't say that that's a goal. It could happen if that's where we see the best opportunities. But I think we're still committed as a direct investor in private equity. We still think that we can invest where we have a competitive advantage and generate better returns. So that's still an area of focus. I think we're saying, those are the sectors where we see our competitive advantage. There could be other sectors that we want to invest in that we don't see that competitive advantage. And it would therefore behoove us to partner with, you know, people we think are smart in those areas, and whether that generates co-investment or not, I think we would obviously like to target co-investment as a fee management exercise. But I think it's going to be a question of what the opportunities we face are versus a targeted view around how much funds or directs we want to do. 

I also noted that the Portfolio Solutions Group is integral in this process. I asked if it's fair to say that this group really is the one that's going to be driving the value creation going forward in private markets, not just private equity, but all private markets?

Jo responded: 

It does vary. I think the lead focus will be writing because of the nature of those assets. I'd also say that it's not a hand over the asset to the Portfolio Solutions Group, they work with the deal teams who are actually accountable for the returns on the choices they put to the Investment Committee.

The point that's important is trying to bring more in-house skills to bear around those assets. So technology expertise, particularly around AI, would be one example. Human resource expertise, around assessing management teams and finding solutions when things aren't working quite the way we hope, or people depart. So there are a few areas, specific areas, where we're trying to write a shot bringing those skills to bear on, I think, it'd be honest. It won't be every asset in the portfolio, but the ones where it's most opportunity to do it now, which is on a timing basis or a value size basis. The job here is to give the asset every opportunity to perform correctly. And if we get that right, we'll hang on to it and if it's not performing to our expectations, on return target, then we will have a different conversation. 

I noted in infrastructure, Jo made a good point about selling the airports at the right price. The return on infrastructure, however, was not as high as I expected it to be (1.8% whereas it's typically 7-8% or higher). I asked if there was any specific reason why it wasn't as high this year. 

Gillian responded:

It's more of a question there of sort of some assets that underperformed, so really more of an idiosyncratic story around a handful of assets rather than a larger statement on the infrastructure overall. 

I asked if they invested in Thames Water and Jo confirmed they did not.

In real estate, I noted there's a new head there, Jenny Hammarlund who's doing a great job diversifying the portfolio internationally. I asked what's going on in real estate and why it underperformed last year.

Stephen responded:

Happy to give some comments on that. You're right, Jenny has been with the firm for several years, and more recently, was named the head of real estate. She's thus far done a fantastic job. 

The story with real estate is really what's happening in Canada is one piece, and then what's happening internationally. This sector in Canada specifically has a lot of challenges over the last four or five years, think COVID, think a number of failures of major kind of retailers and so on. 

I think that's been a very big challenge. You've also had the spectre of kind of just rising cost of capital, higher interest rates, and how that flows through, kind of cost accounting and valuation pieces. 

On the Canadian side, the impact of Hudson Bay was a big driver of performance in 2025. We're seeing some green shoots now in terms of return to the office. Streets are quite busy. That has an impact both on the office side, but it also drives traffic into our malls, which we tend to bring our locations. And so there are some signs of, I suppose, on the real estate piece. 

The other part of the equation is what's been going on internationally and and frankly, that's part of the efforts to diversify that portfolio away from Canada to kind of get a different flavour of exposure, both geographically and by sector. As you know, one of the challenges with our portfolio in Canada is that it is very concentrated to the sectors that have been impacted the most over the last couple of years. And so there has been a conscious effort to try to source assets and sectors that are different than that. And those were actually quite positive in 2025 if you think about some of the exposures in Northern Europe, as well as some of the exposures in our US-related to our data center.

They shared with me that their real estate portfolio is now 56% Canada, down significantly from prior to Covid when it was 85% Canadian (all managed by Cadillac Fairview).

I moved on to private credit which continues to do well. I asked if they can talk a little bit about the credit portfolio, which is a mixed bag of emerging market debt, high yield and private credit. 

Gillian responded:

In terms of private credit, I think the portfolio is still fairly small compared to some others who would have either bought platforms or partnered with GPS to build a portfolio more quickly than we would have. We chose to go in and build our own private credit business so that we could handle that sort of individual name underwriting which in our view, is proving to be very valuable in the current market. So that portfolio, I would expect to be somewhat challenged with software exposure, like every private credit portfolio is, but not to be challenged around some of this kind of rehypothecation issue around collateral for votes. 

On Emerging Market credit and private credit, she added this:

EM private credit is one that we don't really do. I'm trying to think what we have in private credit, it would be negligible. EM credit is something that we do more in the liquid space. I don't think it's impacted by this at all. 

I think again, private credit, for us, we are doing those underwrites pretty carefully. I'd say having the team, and we've talked about it before, but having credit as a team across public, private, EM/ DM, etc, it means that that team can shift to where the opportunities are, versus having sort of target allocations. 

And so that gives us more flexibility.That just means that when spreads tighten and they're there, you don't feel like you're being paid sufficiently for the risk and private credit. It's easy to allocate more into public markets and the allocation at the top of the house. So I'd say we have a, probably a pretty flexible approach compared to most of our peers.

I moved on to this year, noting volatility is insanely high. I asked Stephen about asset allocation and he responded:

Yeah, sure. No, just a comment on the volatility piece, which was the January, February story. I see you alluded to what feels like a year of volatility in three or four weeks, want to be careful to say, because I don't think this time is volatility comes and goes, and so you need to be aware of that again, as you're aware with this premise of building a portfolio that's resilient to a prepared in advance for these kind of shots, not knowing what those shots are going to be.

That's certainly one of the underlying principles that we use, and we have a reasonably large allocation to inflation-sensitive asset classes not to predict, not to predict these types but to protect their portfolio in the event that these things occur.

And certainly that's been both in 2025 but also in 2026 that really served as well in terms of really providing some offsets to some of the negative moves we've seen in equities and interest income, which, by the way, for the magnitude of the events, have been relatively stable. I think the volatility that you're referring to has been surprisingly buying markets, not as much in kind of the more traditional asset space, income, the two main ones, and that's being the other way, 

I noted that Jo spoke at the WEF in Davos about reducing their exposure to US Treasuries and asked if it's continuing this year. I also noted that while the depreciation of the US dollar hit them last year, it wasn't as much as their peers.

Jo replied:

You're right, what we did early in 2025 was to reduce our exposure to US dollar and US Treasuries. I think that meant our currency hit was lower than some of our peers as a result of that in terms of the US dollar, Canadian dollar translation.

I think we still see questions about the strength of the US dollar long term, but I don't think we're that convinced to say it's going to influence our ultimate weighting to opportunities in the US. I suspect in the US, we'll just continue to be quite selective about areas where we think we've got expertise and some sort of competitive advantage. 

As you know, we've been proven to be a good custodian of strategically sensitive assets in other parts of the world. We'd hope we'd be able to be considered for those. And that's a broader landscape than it used to be, something energy production and transmission is seen as a strategically sensitive area than perhaps it was 10 years ago.

We are still active in technology in the US through our venture growth team, as well as our other successes, and an area where we have a lot of successes in financial services so continue to look at North America as a very strong platform for that as we go forward. So selective by what we're good at, selective by where we see opportunity, probably finally, selective about which things we think we actually have the ability to be seen as a collaborative and a supportive partner for all projects. 

Jo noted what the venture growth team brings is not only some good investments which are performing very well, but also expertise and understanding of what's happening in the disruptive areas of technology, which we can feed back into the rest of the planet.

Lastly, I asked Jo one last question, more of a philosophical question, meaning we saw the Maple 8 funds over the last 20 years shift their assets from public to private markets, where that was supposed to be the area of value creation. And now there are a lot of critics that are saying this shift towards private markets has run its course, and basically the funds should shift back to public markets. I asked him how he would respond to these critics?

Jo replied:

I'd say that Ontario Teachers' over 35 years made a lot of money out of private equity. Point 1. Point 2 is when you've made a lot of money in a certain area, you want to move away from that with some thought and trepidation. And then finally, we equally have to be objective and say how things change, which means it's fundamentally a different value proposition to what we've seen in the past, or the way we get paid for the risk we take and the lack of liquidity is is different, and that's those are the two questions I think we need to keep an eye on as we go forward.

But look, we have a very good portfolio. We have talented investors. We've invested in that area, but the idea is I think there is a prize for Teachers' to be one of the few investors in the sovereign wealth/ pension fund community capable of investing directly in great companies in the private space. And if that's the prize by staying with what we're doing at the moment, I think we will look at that first and then move away from that when the evidence is pretty compelling that we don't make enough return.

He added this in terms of what they're worried about in 2026 and how they're positioning the portfolio:

I think we need to get the right balance, which is to say, we're making the right steps to keep the plan funded. The portfolio at the moment, has been in 2026 performing pretty well. We have got a resilient portfolio which generally does pretty well when things get difficult. And the decision for us is actually trying to look ahead and say, where do we make adjustments more than something completely comprehensive as a change to our approach? So the adjustments are probably going to be in what sort of the right approach to inflation, what's the right approach to future growth around the companies we're already invested in, and we may choose to back in the next few months. 

And in terms of his expectations, Jo was very clear:

I'm very keen for everyone at Ontario Teachers' to be clear about what we're asking them to do, and they're accountable for the outcomes of what they've done. That has been a very strong message for everybody over the last 24 to 36 months, and we're very fortunate here to be an investor at scale, accessing international opportunities with a super support team around everybody. 

Great discussion, I thank Jo, Gillian and Stephen once again for taking the time to talk to me to share all this. 

In sum, it wasn't a great year for Ontario Teachers' but their diversified portfolio helped them overcome challenges in private markets and the plan remains fully funded.  

More importantly, they are implementing the right steps to ensure better focus, performance and outcomes, so I expect them to bounce back strongly in the next couple of years. 

Please take the time to read their 2025 annual report for a lot more insights. 

Below, Ontario Teachers' Pension Plan President & CEO Jo Taylor says the pension has cut exposure to US Dollar and Treasuries. He speaks to BTV's Jonathan Ferro, Lisa Abramowicz and Annmarie Hordern on the sidelines of the 2026 World Economic Forum in Davos, Switzerland (January).

Also, Jo Taylor tells CNBC’s Dan Murphy in Davos that he’s closely watching geopolitical spillovers in financial markets. While volatility should be seen as a buying opportunity, Taylor emphasizes investors must “know what you own” during uncertain times.

Lastly, Gillian Brown, Chief Investment Officer, Public & Private Investments, Ontario Teachers' Pension Plan discusses the organization's approach to global markets, risk management and positioning for long-term growth with Bloomberg's Derek DeCloet at the 2025 Bloomberg Canadian Finance Conference in New York (October 2025).

Monte Steward of Connect Canada CRE reports La Caisse Invests $240M in Cologix’s MTL 8 Data Centre:

La Caisse has provided $240 million in senior financing for Cologix’s MTL8 colocation data centre in Montreal.

The global investment group announced the financing agreement with Cologix, a North American network-neutral interconnection and hyperscale edge data-centre company. Construction of the facility’s structure and building envelope has been completed, and the AI-ready data centre is now in service. La Caisse supplied the entire debt financing to support Cologix’s continued investment in the site.

Located in Technoparc Montréal near Montreal–Pierre Elliott Trudeau International Airport, the MTL8 facility will deliver 21 megawatts of capacity and is powered by hydroelectricity. The site integrates with Cologix’s interconnection network across its 11 other Montreal facilities.

In 2025, the MTL8 data centre achieved LEED Gold certification, confirming its sustainability features meet high green building standards and making it one of the first facilities of its kind to earn the distinction. Cologix plans to use MTL 8 as a model for more green data centres.

“For close to a decade, we’ve invested in high-quality digital infrastructure assets that deliver long-term value, supported by strong fundamentals and growing demand for hyperscale capacity and computing power,” said Jérôme Marquis, managing director and head of private credit at La Caisse. “Our partnership with Cologix began in 2021, and since then, the company has reinforced its leadership across Canada and in Quebec. This third investment reflects our conviction in scalable digital-infrastructure platforms that enable businesses and communities to thrive.”

Scott Schneider, CFO for Montreal-based Cologix, said its partnership with La Caisse reflects his company’s continued commitment to invest in critical digital infrastructure across Canada.

“We have a strong, longstanding relationship with La Caisse, built on shared priorities around responsible growth, long-term value creation and supporting the growing needs of customers and communities, he said. “Together, this partnership positions us well to continue scaling infrastructure in Canada in a thoughtful, sustainable way as demand for cloud, AI and interconnected services continues to grow.”

The company operates 46 data centres in Canada and the U.S., including facilities in Montreal, Toronto, Vancouver and Calgary. 

Last week, La Caisse announced it invested CAD 240 million to advance Cologix’s AI-ready MTL8 data centre in Montreal:

La Caisse, a global investment group, and Cologix, a network-neutral interconnection and hyperscale edge data centre company in North America, announce today they have concluded an agreement for a CAD 240 million senior financing for Cologix’s Montréal MTL8 colocation data centre. Construction of the structure and building envelope are completed, and the AI-ready data centre is in service. La Caisse has provided the entirety of the debt financing to support Cologix’s continued investment in the site.

Located in Technoparc Montréal, a major aerospace and technological hub situated near the Montréal-Pierre Elliott Trudeau International Airport, the MTL8 facility will deliver 21 MW of capacity and is powered by hydroelectricity. It integrates with Cologix’s dense interconnection network across its 11 other Montréal facilities. In 2025, the MTL8 data centre achieved LEED® Gold certification, confirming its sustainability features meet the highest green building standards, and making it one of the first facilities of its kind to earn this distinction.

“For close to a decade, we’ve invested in high-quality digital infrastructure assets that deliver long-term value, supported by strong fundamentals and growing demand for hyperscale capacity and computing power,” said Jérôme Marquis, Managing Director and Head of Private Credit, La Caisse. “Our partnership with Cologix began in 2021, and since then, the company has reinforced its leadership across Canada and in Québec. This third investment reflects our conviction in scalable digital infrastructure platforms that enable businesses and communities to thrive.”

“Canada has always been a core market for Cologix and this partnership reinforces our continued commitment to investing in critical digital infrastructure across the country,” said Scott Schneider, Chief Financial Officer of Cologix. “We have a strong, longstanding relationship with La Caisse, built on shared priorities around responsible growth, long-term value creation and supporting the growing needs of customers and communities. Together, this partnership positions us well to continue scaling infrastructure in Canada in a thoughtful, sustainable way as demand for cloud, AI and interconnected services continues to grow.”

ABOUT COLOGIX

Cologix powers digital infrastructure with 45+ hyperscale edge data centers and interconnection hubs across 13 North American markets, providing high-density, ultra-low latency solutions for cloud providers, carriers and enterprises. With AI-ready, industry-leading facilities, Cologix offers scalable, flexible and sustainable data center options to help its customers accelerate their business at the digital edge. Cologix provides extensive physical and virtual connections, including Access Marketplace, where customers gain fast, reliable and self-service provisioning for on-demand connectivity. For more information, visit cologix.com or follow us on LinkedIn and X.

ABOUT LA CAISSE

At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long-term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec’s economic development.

As a global investment group, we’re active in the major financial markets, private equity, infrastructure, real estate and private credit. As at December 31, 2025, La Caisse’s net assets totalled CAD 517 billion. For more information, visit lacaisse.com or consult our LinkedIn or Instagram pages.

After reading more about Cologix and what they do, I'm not surprised La Caisse partnered with them in 2021 and has provided the entirety of the debt financing to support the company's Montréal MTL8 colocation data centre.

In short, this is an extremely impressive company:

 

 

Even more impressive, Cologix is a leader in sustainability in its industry.

For example, I read these highlights from its fourth annual ESG report:

At Cologix, we aim to achieve more while considering the resources we deploy across our footprint. Scaling Sustainably means we grow carefully, we hire thoughtfully and we make decisions based on Cologix’s goals for our employees, customers and communities. One cannot succeed without the others.

We are pleased to share our accomplishments in 2023 across our environmental, social and governance initiatives, which include:

• Reaching 68% carbon-free energy usage across our footprint
• Introducing our ESG Key Performance Indicators that align with our ESG Strategy and Roadmap
• Quantified Scope 3 carbon emissions data and reported publicly for the first time
• Completed certification of five of our U.S. facilities by ENERGY STAR®
• Continued to align our capital expenditure process with our ESG Roadmap. Since 2016, we have spent more than $32M in ESG-related CapEx
• Continued quarterly diversity, equity and inclusion-related training with 100% completion by active employees
• In early 2024, developed a new suite of stand-alone policies for our team including Human Rights, Diversity, Equity and Inclusion, Anti-Bribery and Anti-Corruption and Whistleblower Guidelines.
  
  

I am incredibly proud of what we have accomplished together in the last year. We are excited to continue to build on these goals and enhance our efforts in 2024, and I am confident that as a team we can achieve more. Read our latest report to learn more about our work toward ESG excellence, and feel free to provide feedback at esg@cologix.com.

 What else? I read a white paper on their site on how they are transforming data centers for the AI era: 

AI is rapidly transforming industries, driving explosive growth in compute power and data center demand. With AI workloads requiring up to 200 kW per rack—far beyond traditional capacities—data centers must evolve to support this shift.

At Cologix, we build and retrofit data centers designed for AI’s unique needs, delivering advanced power density, innovative cooling solutions, and low-latency connectivity. Our infrastructure meets the rising demands of AI while addressing scalability, reliability, and sustainability, helping businesses stay ahead in the fast-paced AI revolution.

Unlock the future of AI infrastructure, download the full white paper now!

AI infrastructure and Data Center FAQs

1. What makes Cologix’s data centers AI-ready compared to traditional facilities?

Traditional data centers typically handle up to 45 kW per rack, but AI workloads now demand densities up to 135 kW — with some projections reaching 200 kW per rack. Cologix addresses this through purpose-built infrastructure featuring advanced Direct-to-Chip (DTC) cooling systems that support 60-120 kW per rack, multi-megawatt ScalelogixSM campuses for hyperscale deployments and strategic edge locations across 45+ data centers in 12 North American markets. Our facilities incorporate extended cold aisle designs, comprehensive power planning and robust connectivity ecosystems specifically engineered for AI workloads’ unique requirements.

2. How does Cologix solve the power challenges facing AI deployments?

AI’s explosive growth is driving data center power consumption from 4.4% of total U.S. electricity in 2023 to a projected 6.7-12% by 2028. Cologix tackles this through a comprehensive energy strategy featuring diverse power sources, with over 60% of our footprint already carbon-free and Canadian sites operating with 98% renewable energy. We partner strategically with utilities like AEP Ohio, invest in innovative energy technologies and design flexible power solutions that accommodate both AI startups scaling incrementally and established providers with consistent high-density power demands across our scalable campus environments.

3. What cooling solutions does Cologix offer for high-density AI workloads?

High-density AI servers generate significant heat that overwhelms traditional air cooling methods. Cologix implements advanced cooling technologies including Direct-to-Chip (DTC) cooling, which circulates liquid coolant directly to high-power components like GPUs and TPUs. This targeted approach enables safe, efficient operation at power densities between 60-120 kW per rack while maintaining operational stability. We complement DTC systems with extended cold aisle designs and leverage Computational Fluid Dynamics (CFD) analysis to optimize cooling layouts for each customer’s specific configuration, ensuring maximum infrastructure efficiency and reliability.

4. How does Cologix support GPU as a Service (GPUaaS) providers?

The GPUaaS market is reshaping cloud computing by providing scalable, high-performance computing specifically for AI, machine learning and deep learning applications. Cologix enables this transformation through infrastructure that delivers the power density, advanced cooling, and robust connectivity that GPUaaS providers require. Our facilities offer direct onramps, diverse carrier options and low-latency connectivity essential for distributed AI workloads. With strategically positioned edge locations and hyperscale campuses, we provide the flexible foundation GPUaaS companies need to scale efficiently while meeting demanding bandwidth and latency requirements.

5. What sustainability initiatives does Cologix implement for AI infrastructure?

Recognizing AI’s growing energy demands, Cologix maintains a strong commitment to environmental responsibility with over 60% of our power footprint already carbon-free and Canadian facilities operating with 98% renewable energy. Our comprehensive energy strategy deploys diverse power sources, strategic utility partnerships and investments in innovative technologies to ensure reliable, lower-emission power delivery. We work closely with regional utilities to optimize power solutions and adapt to local energy needs while supporting customers’ long-term sustainability goals, proving that high-performance AI infrastructure and environmental stewardship can coexist effectively.

I am basically offering you a glimpse into this amazing company, and you understand why La Caisse is financing its Montréal MTL8 colocation data centre.

The company checks off all the boxes, including sustainability, and is growing extremely fast. 

And with smart financing deals like this, yes, La Caisse can double its allocation to private credit in the next five years.

Alright, let me wrap it up there, I like this deal a lot, and that's why I covered it in a bit more detail. 

Below, discover the strategic advantage of Cologix's Montréal Data Centers, offering approximately 1 million square feet across 12 facilities in and around the city. With direct connections to major cloud providers like Amazon Web Services, Google Cloud Platform, IBM Cloud, Microsoft Azure, and Oracle, plus access to over 100 network service providers, Cologix ensures low latency and high-speed connectivity.

Also, in this episode of The Deep Edge Podcast, host Ray Mota sits down with Callum Morrison, Account Director at Cologix, and Wayne Lloyd, CEO of Consensus Core, to discuss their pioneering partnership that is reshaping North America’s AI infrastructure landscape. 

The guests delve into the launch of the first NVIDIA-powered GPU-as-a-Service (GPUaaS) at Cologix’s MTL10 data center in Montreal, exploring how scalable, on-demand GPU resources are empowering businesses in AI, machine learning, and 3D rendering. 

The conversation covers the strategic role of connectivity and interconnection in delivering optimal performance for AI applications, Canada’s emergence as a global AI infrastructure hub, and the vision for AI-ready data centers poised to support future edge innovations.

James Bradshaw of the Globe and Mail reports CAAT CEO Derek Dobson resigns, agrees to repay $1.6-million vacation payout:

The CAAT Pension Plan is parting ways with chief executive officer Derek Dobson, who has agreed to repay a controversial $1.6-million vacation payout he received last year as he ends his nearly 17-year tenure at the helm of the plan.

CAAT said in a statement on Friday that “Mr. Dobson has tendered his resignation and will leave CAAT effective immediately” as part of a settlement agreement that “brings closure to his employment at the plan.”

Mr. Dobson was placed on administrative leave last month after concerns about his leadership and the board’s oversight of his actions caused upheaval in the senior ranks of the $23-billion fund, ultimately leading to a governance crisis that has prompted an overhaul of the plan’s management.

The terms of the settlement agreement were not disclosed.

“Both Mr. Dobson and the CAAT board of trustees acknowledge the importance of moving forward in a manner that supports the long-term health of the plan and the beneficiaries it serves,” CAAT’s statement said.

Mr. Dobson said in an e-mail that he is leaving “with deep pride in what we accomplished together,” and remains “passionate about strengthening retirement income security for Canadians.”

“There is more important life-changing work to be done,” he added.

CAAT is a multiemployer pension plan that expanded rapidly during Mr. Dobson’s tenure, from $4-billion of assets to more than $23-billion today. It serves Ontario’s colleges and more than 800 public- and private-sector employers, with about 125,000 members. The plan is also in a surplus position, with $1.24 for every dollar of expected pension obligations in the future.

Ana Pereira of the Toronto Star also reports CAAT pension plan CEO resigns, will repay $1.6-million vacation payout:

The CEO of CAAT pension plan has resigned and will repay a $1.6-million vacation payout he received in 2025. 

On Friday morning, CAAT (Colleges of Applied Arts and Technology) pension plan announced in a news release that Derek Dobson reached a settlement agreement with the company after being put on administrative leave by the board of trustees last month. 

“Both Mr. Dobson and the CAAT board of trustees acknowledge the importance of moving forward in a manner that supports the long-term health of the plan and the beneficiaries it serves,” CAAT said in the release. 

The $1.6-million vacation payout was among concerns cited by three senior executives who abruptly left the organization in January, leading to a governance upheaval at the plan and several other leadership changes. Another concern was related to the CEO’s sanctioned relationship with a co-worker. 

Corporate governance experts told the Star that the sheer amount Dobson received in lieu of taking vacation is “exceptional” and a “red flag,” and that secrecy surrounding his compensation threatens to erode trust in the company.

The non-profit pension plan, which manages the retirement dollars for 125,000 members (including Toronto Star employees), has launched a governance review, which is still underway. 

“The independent governance review is progressing well,” said CAAT spokesperson Stephen Hewitt. “The board will provide an update following its conclusion.” 

Dobson had been the head of CAAT since 2009, when the plan held $4 billion in assets. Today, the organization manages $23 billion. 

“After nearly 17 years as CEO and plan manager of the CAAT pension plan, I am concluding my tenure with deep pride in what we accomplished together,” Dobson wrote in an emailed statement to the Star. 

“I have been privileged to work alongside extraordinary people who shared a similar purpose of improving retirement income security for Canadians.” 

In light of the three senior executive departures, the Ontario Public Service Employees Union (OPSEU), which appoints five trustees to the board, suspended former board chair Don Smith in January. 

The union alleged that Smith and former vice-chair, Kareen Stangherlin, acted outside the policies and procedures of the plan and made decisions about the CEO’s compensation without informing the other members of the board.

Smith was subsequently fired and Stangherlin resigned. She previously told the Star that the accusations against her are not true. 

Smith and Stangherlin did not immediately reply to the Star’s request for comment regarding Dobson’s resignation. 

Also Friday, CAAT announced a new leadership team as part of the plan’s effort to restore trust. The plan is well-funded, with $1.24 in assets for every dollar of promised benefits.  

Earlier today, the CAAT Board of Trustees announced departure of CEO and new leadership team:

• Derek Dobson to leave CAAT effective immediately and repay 2025 vacation payout
• New senior leadership team comprised of internal CAAT executives appointed

Toronto, March 6, 2026 — The CAAT Pension Plan (“CAAT” or “the Plan”) today announced the departure of CEO and Plan Manager Derek Dobson and unveiled a new senior leadership team to lead the organization.

Derek Dobson departure

CAAT has reached a settlement agreement with Mr. Dobson that brings closure to his employment at the Plan. As part of this agreement, Mr. Dobson has tendered his resignation and will leave CAAT effective immediately, and repay his 2025 vacation payout to CAAT.

Both Mr. Dobson and the CAAT Board of Trustees acknowledge the importance of moving forward in a manner that supports the long-term health of the Plan and the beneficiaries it serves.

CAAT also thanks the Financial Services Regulatory Authority of Ontario for its constructive engagement as the Plan continues to strengthen its governance and oversight.

New leadership team

CAAT also announced a new leadership team to execute on the Plan’s strategy, restore stakeholder trust and continue to deliver on CAAT’s pension promise to its members and sponsors.

“While the Plan has recently undergone a period of significant change, I am proud that these five senior leaders are all existing CAAT employees who will drive stability and institutional continuity while leveraging their strong internal relationships to engage and inspire our teams as they serve our member constituents every day,” said acting CAAT CEO and Plan Manager Kevin Fahey.

The following five leaders will report directly to Mr. Fahey:

• Laura Foster, appointed interim Chief Financial Officer
• Jillian Kennedy, appointed Chief Operating Officer
• James Fera, appointed Chief Legal Officer & General Counsel
• John Baiocco, appointed Senior Vice President, Funding & Sustainability
• Stephen Hewitt, appointed Senior Director of Communications

Mr. Fahey will also continue to serve as the Plan’s Chief Investment Officer. A search for a Chief Human Resources Officer remains ongoing.

“On behalf of the Board, I’d like to thank Kevin for his strong leadership since his appointment as the Plan’s acting CEO and the impressive progress he has made in a very short period of time,” said CAAT Board of Trustees Chair Audrey Wubbenhorst. “The Board continues to focus on its work in the best interests of members and I would also like to express our gratitude to all of our stakeholders for their ongoing trust and confidence in the Plan.”

CAAT remains one of Canada’s most sustainable and well-funded pension plans. Its most recent independent valuations show the Plan at a 124% funded status, meaning that for every $1 of pension benefits CAAT has promised to members, the Plan has $1.24 in assets. With more than $23 billion in assets and over $6 billion in funding reserves, the Plan is well positioned to withstand market volatility, demographic change, and other risks.

About CAAT

Established in 1967, the CAAT Pension Plan is an independent, jointly governed plan that offers highly desirable modern defined benefit pensions. Originally created to support the Ontario college system, the CAAT Plan now proudly serves more than 800 participating employers in 20 industries, including the for-profit, non-profit, and broader public sectors. It currently has more than 125,000 members. The CAAT Plan is respected for its pension and investment management expertise and focus on stability and benefit security. On January 1, 2025, the Plan was 124% funded on a going-concern basis. 

Learn more at: www.caatpension.ca.  

For his part, Derek Dobson posted this message on LinkedIn which he also emailed to me and others earlier today:

After nearly seventeen years as CEO and Plan Manager of the CAAT Pension Plan, I am concluding my tenure with deep pride in what we accomplished together. When I joined CAAT in 2009, the Plan served 33,000 members and held $4 billion in assets and was in a funding deficit. 

Today, CAAT supports more than 125,000 members across 800 employers in 20 industries nationwide, with assets exceeding $25 billion and over $6 billion in funding reserves to keep the pension plan secure indefinitely.

I have been privileged to work alongside extraordinary people who shared a similar purpose of improving retirement income security for Canadians.

I have deep appreciation for those who transformed CAAT into one of Canada’s most respected and innovative pension plans. Together, we launched internationally award‑winning programs such as DBplus and GROWTHplus, strengthened the Plan’s funded status, and most importantly helped members and employers across Canada meet their goals. I am grateful for the trust placed in me over the years and the many milestones we achieved together.

I want to thank the many colleagues, partners, and stakeholders who have made this journey so meaningful. 

As I look ahead, I am excited to continue contributing to making Canada better for today and tomorrow. I remain passionate about strengthening retirement income security for Canadians. There is more important life-changing work to be done. 

Alright, it's Friday, my week off went nowhere because there were important items to cover in the pension world (there always are).

My thoughts on the latest developments at CAAT Pension Plan. 

Well, to be frank, I'm not surprised. 

The writing was on the wall. I knew Derek Dobson's days were numbered, and he was asked to resign, which he did and they put the Plan first by agreeing to terms.

The headlines say he also agreed to repay his $1.6 million vacation pay that was wrongfully awarded to him by the former chair and vice-chair.

But the terms of the settlement were not disclosed, and I wouldn't be surprised if Derek Dobson negotiated a nice settlement upwards of $2-3 million to walk away cleanly. 

That's fine. He spent 17 years leading the CAAT Pension Plan, accomplished a lot during that period, and deserves a fair settlement (in my opinion, all settlements should be made public).

To be brutally honest, for 17 years, Derek Dobson was CAAT Pension Plan, and that in itself was a problem because he was involved in every aspect of the Plan and was the public figurehead for it (there wasn't much succession planning there).

Members trusted him implicitly and it's a shame he's leaving the organization under these circumstances, but he also has a lot to be proud of and did leave it in great financial shape.

Now it's time for CAAT Pension Plan to turn the page under a new board of directors and a new leadership team.

I've said it before, Kevin Fahey is going to make an outstanding CIO, and I'm confident in his ability to assume a larger responsibility and also act as CEO and Plan Manager at this critical juncture.

More importantly, CAAT's Board has full confidence in him to assume this huge responsibility.

Of course, it goes without saying that Kevin Fahey has a lot on his plate. He really needs to manage his time and objectives properly if he wants to continue growing CAAT's membership and delivering solid long-term returns.

That means the people who will report to him on the investment, finance, and other key areas need to also step up to the plate and support him, now more than ever.

His first job is stability and focus on riding out this turbulent time at CAAT and the markets.

Once the dust settles, he can focus on other objectives like growing the membership. 

But first focus on stability, stability, and stability; the rest will fall into place.

What happens to the three senior execs who departed the organization after informing the Board of their concerns?

Unfortunately, they're gone, not coming back. They are probably negotiating their own settlements or have already done so (again, details are not disclosed). 

The same goes for the employee who was in a relationship with Derek Dobson, she is on leave, and she's probably reflecting on her future. 

And what about the independent governance study that CAAT's Board commissioned? 

That will eventually be made public and I'm looking forward to reading the findings.

Whatever the findings, however, it's time to put this governance crisis behind CAAT and focus on the future.

This is an important pension plan in Canada, and it has a very bright future. 

On that note, wish everyone a great weekend and I will leave you with some market clips. 

Below, the CNBC Investment Committee debate how to play the volatile markets and whether investors should buy the dip or not (from March 5th).

Next, Dan Niles, Niles Investment Management founder, joins 'Power Lunch' to discuss the broader market sell-off, recent software stock performance and much more (March 5th).

Third, the CNBC Investment Committee debate what $90 Oil means to the market and how you should navigate it (March 6th).

Fourth, Jan Hatzius, chief economist at Goldman Sachs, joins 'Squawk on the Street' to discuss the latest jobs report, market themes, and more.

Fifth, Rick Rieder, CIO of global fixed income at BlackRock, says “the economy and employment are quite different conditions,” as he reacts to the February jobs report and explains why he still sees 2.5% - 3% US economic growth in the first quarter.

Lastly, concerns have been bubbling up over the $1.8 trillion private credit market in recent weeks, with investors spooked in part by the risk of artificial intelligence on some borrowers and worries about valuations. Last month, a Blue Owl Capital Inc. fund opted to halt quarterly redemptions and started selling assets to return money to investors. 

This week, Blackstone Inc.’s flagship private credit fund allowed investors to redeem a record 7.9% of shares. Worries have mounted more broadly in credit markets following a spate of high-profile corporate collapses, most recently of UK-based Market Financial Solutions Ltd. Banco Santander SA Executive Chair Ana Botin likened hits from bad loans to jellyfish stings, after her bank was reported to be exposed to the mortgage finance firm. JPMorgan Chase & Co. CEO Jamie Dimon has spoken of failed corporate borrowers as “cockroaches,” suggesting there could be more. 

Bloomberg News Chief Correspondent for Private Capital Davide Scigliuzzo joins Bloomberg Businessweek Daily to discuss. He speaks with Carol Massar and Tim Stenovec. With record fundraising after the 2008 financial crisis, direct-lending vehicles have loosened their underwriting standards and are due for a stress test, according to a Pacific Investment Management Co. analysis of private-credit risks.

Bryan McGovern of Benefits Canada reports Canada’s largest pension funds joining Australian peers to increase investments in both countries:

Canada’s largest pension funds are joining an initiative that aims to boost pension investments between Canada and Australia.

The Canadian-Australian Pension Funds Investment Initiative, announced Wednesday during Prime Minister Mark Carney’s visit to Australia, will create a framework for pension funds in the two countries to discuss policy barriers and associated solutions to improve the current business environment.

The agreement includes participation from the Alberta Investment Management Corp., the British Columbia Investment Management Corp., the Caisse de dépôt et placement du Québec, CPP Investments, the Healthcare of Ontario Pension Plan, the Investment Management Corp. of Ontario, the Ontario Municipal Employees’ Retirement System, the Ontario Teachers’ Pension Plan and the Public Sector Pension Investment Board.

The participating Australian pension funds include the Australian Retirement Trust, AustralianSuper, Aware Super, CareSuper, the Construction and Building Unions Superannuation, HESTA, Hostplus and the Retail Employees Superannuation.

“We seek to contribute our experience, knowledge and relationships to the mutual benefit of CAP Invest Initiative participants, as this initiative upholds constructive engagement that will help support stable, investable markets over the long run,” John Graham, president and chief executive officer at CPP Investments, said in a press release.

The deal, which was facilitated by IFM Investors, will also require building awareness of investment models that leverage the expertise of long-term and reliable pension capital investors, according to a press release.

“I’m proud of the strong relationships our team has built in Australia and excited about the role we can continue to play through this initiative,” Deborah Orida, president and CEO at PSP Investments, said in a statement. “For more than a decade, Australia has been an important market for us.”This agreement will build the natural partnership between the two countries and putting long-term pension capital to work in both countries, said Ken Luce, executive director Canada at IFM Investors, in an emailed statement to Benefits Canada.

“Both countries have world-leading pension systems and stable, open economies. There’s a real opportunity to deepen collaboration, address barriers where they exist and make it even easier to invest long term in opportunities that benefit working and retired Canadians and Australians alike.” 

Freschia Gonzalez of Benefits and Pensions Monitor also reports Canada and Australia pensions strike first-of-its-kind cross-border investment pact:

Canada and Australia are tying together two of the world’s largest retirement systems through a new investment pact that aims to push more pension capital into both markets. 

More than a dozen Canadian and Australian pension giants have entered a first-of-its-kind memorandum of understanding (MOU) under the Canadian-Australian Pension Funds Investment Initiative (CAP Invest Initiative). 

CPP Investments said the initiative asks leading pension investors to make a voluntary commitment “to facilitate dialogue on investment environments and policy barriers to generate solutions that unlock greater opportunities for value creation.” 

Bloomberg reports that the MOU was announced in Sydney during Canadian Prime Minister Mark Carney’s visit to Australia and is the first agreement between the two pension systems.  

Under the arrangement, funds will cooperate to channel more pension capital into opportunities in both markets, according to a statement from eight of Australia’s largest pension funds cited by Bloomberg. 

Signatories include AustralianSuper, which manages A$410bn (US$289bn), and the Canada Pension Plan Investment Board, with $781bn (US$571bn) in assets, along with eight other major Canadian funds. 

Canada operates the world’s second-largest pension system, while Australia’s A$4.5tn pool is No. 4, and Canada’s system is forecast to reach $8tn while Australia’s is projected to swell to A$11tn by 2040, according to the same statement cited by Bloomberg. 

CPP Investments said the CAP Invest Initiative “fosters collaboration among participating pension and investment funds in Canada and Australia, with millions of contributors and beneficiaries in both countries.”  

While tailored to these markets, the underlying practices “such as structured engagement, identification of opportunities and shared learnings, are the same disciplines that support success across other regions where CPP Investments operates.”  

The organisation added that continuing to build strategic relationships between participants aligns with its commercial activities internationally. 

CPP Investments president and CEO John Graham said the fund will use its experience, knowledge and relationships to contribute to the CAP Invest Initiative.  

He described CPP Investments as “an established global investor” and said the initiative aims to support stable, investable markets over the long term.  

Bloomberg reports that Carney’s government is seeking funding for large-scale infrastructure projects — including ports, rail and pipelines — as Canada looks to cushion its economy against US President Donald Trump’s protectionist policies, and that the Canadian leader has toured the globe in recent months searching for capital to help fund those ambitions.  

The new agreement is “underscoring support for ongoing cooperation between Canada and Australia in the interest of mutual value creation,” CPP Investments said in a separate statement, as cited by Bloomberg. 

Australian funds, supported by mandatory retirement contributions set at the equivalent of 12 percent of wages, are steadily increasing offshore investments, with roughly half of the country’s pension assets invested abroad and that share expected to rise as managers pursue larger deals.  

The Australian funds’ statement said there is “fertile ground” for investment between Canada and Australia and that the agreement will facilitate dialogue with governments on policy barriers to improve the business environment for investment.  

The MOU will “unlock greater long term capital for private investment on behalf of millions of working and retired people,” the statement added, according to Bloomberg. 

Through its participation in the CAP Invest Initiative, CPP Investments said it supports a collaborative framework for information-sharing among partners that “enhances collective learning and contributes to the prudent deployment of patient capital, in the ultimate service of delivering strong returns for CPP contributors and beneficiaries.”   

Darcy Song of Top1000Funds also reports infrastructure at the heart of Canada-Australia pension fund pact:

A group of major Canadian pension funds, including the Maple 8, has entered a high-powered memorandum of understanding with top Australian superannuation funds to lobby for policy changes that would help fast-track investments in both countries.

The deal, brokered by industry super fund-owned asset manager IFM Investors and known as the Canadian-Australian Pension Funds Investment Initiative (CAP Invest Initiative), is a first-of-its-kind deal between two of the world’s largest pension markets which are expected to manage $13.9 trillion in fiduciary capital by 2040 collectively.

The announcement came as Canadian Prime Minister Mark Carney began his four-day diplomatic visit to Australia in Sydney this Tuesday with the aim of bolstering the connection between the two so-called ‘middle power’ countries.

He attended a breakfast event hosted by IFM Investors in Sydney on Wednesday morning alongside Canadian Finance Minister François-Philippe Champagne, Australian Minister for Financial Services Daniel Mulino, as well as a slew of Australian and Canadian pension fund executives who have signed the MoU.

While the agreement does not commit to a specific dollar amount to be deployed by the pension funds in both nations, with IFM Investors chair Cath Bowtell characterising it as a “MoU for partnership”, enabling infrastructure investments in both nations will be a significant focus of the deal.

“Our job through this partnership is to really look at the frictions that are prohibiting us from making those deployments, and see whether we can work with governments at the national and sub-national level to eliminate those frictions,” Bowtell said at a press conference in Sydney.

IFM has been speaking about the need to unlock private-public partnerships for some time, including at last year’s Top1000funds.com Fiduciary Investors Symposium at Stanford (See Public-private partnerships key to fixing US infrastructure).

Funds in both systems are major sources of capital for real assets around the world. Canadian pension funds are known for having significantly diversified private markets exposures enabled by the famous “Canadian model” which emphasises independent governance and large-scale, in-house investment management.

Australian pension funds have invested heavily in Australian infrastructure since the 1990s as the government privatised transport, utilities and telecommunications assets, making them an early mover in the asset class.

Australian and Canadian pension funds are among the largest allocators to infrastructure globally with the average fund in Australia allocating 6.8 per cent and those in Canada allocating 10.1 per cent, according to a Macquarie Asset Management report – well above investors in other countries.

“We seek to contribute our experience, knowledge and relationships to the mutual benefit of CAP Invest Initiative participants, as this initiative upholds constructive engagement that will help support stable, investable markets over the long run,” John Graham, president and chief executive of CPP Investments, said about the partnership.

Setting the policy agenda

As savings flow into Australia’s A$4.1 trillion ($2.8 trillion) defined contribution system, super funds are seeking opportunities in deeper overseas markets such as the US and the UK. This means they have both a collaborative and competitive relationship with their global peers which are often much larger in size, especially around sourcing and accessing deals.

AustralianSuper is the biggest fund in Australia with A$410 billion ($294 billion) in assets under management, and large offices in both New York and London. The fund is projected to grow to A$700 billion by 2030 and A$1 trillion not long after. It is expected that 70 per cent of new flows will be invested offshore. (See Behind AustralianSuper’s global expansion)

A delegation of super fund executives and lobbyists embarked on a soft power mission to Washington and New York last February, and are being hosted by Australian Ambassador to the US Kevin Rudd in Silicon Valley, New York and Washington next week, to foster greater relationships with US investment partners. US Treasury Secretary Scott Bessent remarked to the super funds that “the confidence you have in the growth is not what one might expect for Australia”.

IFM Investors is a crucial vehicle of super funds’ push for global influence due to its ownership structure and significant mandates with global asset owners. Most recently, NEST, the UK’s largest defined contribution fund, became a shareholder of IFM and committed to invest £5 billion through IFM Investors by 2030. (Inside Nest’s serendipitous deal for IFM stake.)

IFM Investors’ head of global external relations David Whiteley previously said Australian funds must take a collective approach to compete effectively with giant pension funds in North America, Europe, the Middle East and Asia for better access to global investment opportunities.

The infrastructure manager’s UK leaders include former Labour Member of Parliament and Shadow Minister of State for Pensions Gregg McClymont.

In 2024, IFM Investors made a move to influence policymaking in a foreign country, leading a consortium of pension funds in pressuring the UK government to unclog its stagnant pipeline of infrastructure deals, especially around energy transition.

Meanwhile, former president and CEO of CPP Investments and former chair of AIMCo, Mark Wiseman, is now the Canadian Ambassador to the US.

Canadian funds that signed up to the CAP Invest Initiative include AIMCo, BCI, La Caisse, CPP Investments, HOOPP, IMCO, OMERS, OTPP and PSP Investments. On the Australian side, the signatories are Australian Retirement Trust, AustralianSuper, Aware Super, CareSuper, Cbus Super, HESTA, Hostplus and Rest, as well as IFM Investors. 

On Wednesday, CPP Investments issued this press release stating it has entered the CAP Invest Initiative Memorandum of Understanding:

Toronto, ON (March 3, 2026) – Canada Pension Plan Investment Board (CPP Investments) today announced it has entered into a Memorandum of Understanding (MOU) under the Canadian-Australian Pension Funds Investment Initiative (CAP Invest Initiative), underscoring support for ongoing cooperation between Canada and Australia in the interest of mutual value creation.

The CAP Invest Initiative defines a voluntary commitment among leading pension investors to facilitate dialogue on investment environments and policy barriers to generate solutions that unlock greater opportunities for value creation.

The CAP Invest Initiative fosters collaboration among participating pension and investment funds in Canada and Australia, with millions of contributors and beneficiaries in both countries. While tailored to these two markets, the underlying practices such as structured engagement, identification of opportunities and shared learnings, are the same disciplines that support success across other regions where CPP Investments operates. Continuing to build strategic relationships between the participants of the CAP Invest Initiative aligns with CPP Investments’ commercial activities internationally.

“CPP Investments is an established global investor with a strong track record of deploying significant, patient capital into high-quality, economically productive assets. We seek to contribute our experience, knowledge and relationships to the mutual benefit of CAP Invest Initiative participants, as this initiative upholds constructive engagement that will help support stable, investable markets over the long run,” said John Graham, President & CEO, CPP Investments.

Through participation in the CAP Invest Initiative, CPP Investments supports a collaborative framework for information-sharing among partners that enhances collective learning and contributes to the prudent deployment of patient capital, in the ultimate service of delivering strong returns for CPP contributors and beneficiaries.

For its part, PSP Investments issued this press release on the CAP Invest Initiative Memorandum of Understanding:

Montréal, Canada (March 3, 2026) — The Public Sector Pension Investment Board (PSP Investments) today announced it has entered into a Memorandum of Understanding (MoU) under the Canadian–Australian Pension Funds Investment Initiative (CAP Invest Initiative), marking PSP Investments’ participation in a voluntary framework that strengthens collaboration between Canadian and Australian long-term pension investors.

The CAP Invest Initiative was launched today by leaders of some of the largest pension investors in Australia and Canada, in the presence of Prime Minister Mark Carney, the Canadian Minister of Finance and National Revenue, François-Philippe Champagne, and the Assistant Treasurer of Australia, Daniel Mulino. It aims to facilitate dialogue with governments on policy barriers and associated solutions to improve the business environment for investment in each jurisdiction. This collaboration will unlock greater long-term capital for private investment on behalf of millions of working and retired people in both countries.

The CAP Invest Initiative reflects the natural alignment between Canada and Australia. With a shared heritage, open and resource-rich economies, strong credit worthiness, and reliable and transparent legal institutions, PSP Investments believes there is fertile ground to bolster opportunities for investment between Canada and Australia.

“I’m proud of the strong relationships our team has built in Australia and excited about the role we can continue to play through this initiative,” said Deborah Orida, President and Chief Executive Officer of PSP Investments. “For more than a decade, Australia has been an important market for us. This Memorandum of Understanding strengthens cooperation among like-minded long-term investors and helps create the conditions for durable value and essential infrastructure that supports people and communities.”

Through the MoU, signatories also commit to building awareness of investment models that leverage the expertise of long-term and reliable pension capital with the objective of delivering risk-adjusted returns for working and retired people and value for investee companies.

Alright, big pension news to cap Prime Minister Mark Carney's successful visit to Australia.

So what is this Memorandum of Understanding (MoU) under the Canadian–Australian Pension Funds Investment Initiative (CAP Invest Initiative) all about?

Basically, it's a framework where Canada's largest pension funds (Maple 8 + IMCO) and Australia's largest pension funds will collaborate and exchange ideas to strengthen their pension systems and engage policymakers on what investable opportunities they are looking to invest in.

That's the broad picture. In essence, I agree with the article above that this is all about unlocking opportunities in infrastructure so Canada and Australia's largest pension funds can invest.

Keep in mind, Canada's largest pension funds already invest billions in Australia, mostly in infrastructure but also in real estate, natural resources (where PSP Investments and OTPP have a significant portfolio) and elsewhere.

In fact, Australia is way ahead of Canada in terms of creating the right opportunities for foreign investors to invest in infrastructure and other real assets and we can learn a lot from them.

Again, all of Canada's large pension funds have significant investments in Australia and even issue bonds denominated in Australian dollars, the same cannot be said of Australian pension funds investing in Canada.

Where will the CAP Invest Initiative head and who will nurture it and communicate with stakeholders?

I have no idea, it's all based on voluntary participation, there are no fixed targets, nobody "owns" it but it's clear there will be political pressure on both sides to continue the dialogue and share ideas/ build collaboration.

Alright, that's it from me, my week off turned out to be more work than I wanted (the drawback of being a one-person operation).

Below, Prime Minister Mark Carney delivers a speech to Australia's parliament in Canberra, the second Canadian prime minister to do so in the last 20 years.

Great speech, take the time to listen to it. 

Tyler Choi of Sustainable Biz reports Brookfield, BCI, Norges to launch Northview Energy:

Brookfield Asset Management, British Columbia Investment Management Corporation (BCI) and the manager of Norway’s sovereign wealth fund have joined forces to create a renewables company named Northview Energy, which could acquire over $1 billion of assets (all figures US unless otherwise noted) in future deals.

Scheduled to launch in Q2 and valued at approximately $2.6 billion, Northview is described as a private firm that will acquire and own a diversified portfolio of contracted, operating renewable assets in the U.S. and Canada. Northview is expected to acquire a seed portfolio of assets from companies managed by Brookfield, such as U.S. companies Deriva Energy and Scout Clean Energy.

The seed portfolio, Brookfield said in a release, is to comprise 22 contracted utility-scale solar and onshore wind installations in markets “experiencing strong energy demand growth across the U.S.”

The projects total approximately 2.3 gigawatts (GW) of operating capacity and are newly operational, according to Brookfield. Norges Bank, Norway's central bank which manages the country's sovereign wealth fund, said the 22 projects are made up of 17 solar facilities and five onshore wind farms across 11 states.

The assets are backed by long-term power purchase agreements with investment grade counterparties, with a weighted average remaining term of approximately 16 years.

Sustainable Biz Canada has reached out to Brookfield for additional comment. Brookfield replied but provided no details.

Equal ownership in Northview

The three parties behind Northview signed the agreement for the company on Feb. 25, Norges Bank said.

Northview has also entered into a framework agreement for potential future acquisitions of renewable assets from Brookfield-managed portfolio companies in the U.S. and Canada, representing up to $1.5 billion of equity capital.

“This partnership marks the creation of a scalable platform for Brookfield and our partners,” Jehangir Vevaina, chief investment officer of Brookfield’s renewable power and transition group, said in the announcement.

“Northview Energy will be an owner of high-quality operating assets that deliver affordable and clean power to the grid and the framework for future acquisitions provides a clear growth pathway for the vehicle to add de-risked, high-quality, cash-yielding assets delivering strong returns.”

Brookfield, BCI and Norges Bank Investment Management will share customary governance rights for Northview, and will equally fund and own the company.

Future acquisitions are expected to focus on de-risked operating assets, such as onshore wind, utility-scale solar and battery storage.

“Northview is a highly strategic addition to our infrastructure portfolio, bringing together de‑risked renewable energy assets, long‑term contracted revenues, and a clear path for growth alongside like-minded, high‑calibre partners," Lincoln Webb, the executive vice-president and global head of infrastructure and renewable resources at BCI, said in the announcement.

Despite regulatory pressures on the renewables sector in the U.S., clean energy infrastructure continues to be developed. Much of the rising demand for electricity in 2027 will "will be met by growth in generation from renewable sources of energy," the U.S. Energy Information Administration said in a February report.

The Canadian Renewables Association expects 2026 "to set a pace for steady growth that will continue into the next decade and beyond." The industry organization anticipates eight GW of new renewables capacity by 2029.

The three owners of Northview

Based in New York but majority owned by Toronto's Brookfield Corporation, Brookfield Asset Management has over $1 trillion of assets under management across the renewables, infrastructure, private equity, real estate and credit sectors.

In its 2024 sustainability report, the latest to date, the company reported its target to reach net-zero across its operationally managed investments by 2050 or sooner. It also highlighted commissioning approximately 15 GW of clean energy capacity since 2022 and raising over $37 billion in its transition business.

Based in Victoria, BCI is an institutional investor with C$295 billion in assets under management as of March 31, 2025. BCI’s Infrastructure & Renewable Resources program is a diversified portfolio valued at C$32.2 billion as of March 31, 2025. The program has assets located around the world including the U.S., emerging markets and Canada.

Norges Bank manages the Norwegian government’s pension fund, the world’s largest sovereign wealth fund valued at approximately $2.1 trillion. As part of its 2025 climate action plan, the pension fund increased its renewable energy infrastructure portfolio to almost $8.7 billion.

Northview “marks our first investment in North America and an important step in diversifying our renewable energy infrastructure portfolio,” Harald von Heyden, global head of energy and infrastructure at Norges Bank, said. 

Earlier today, BCI issued a press release on the deal with Brookflied and NBIM to launch Northview Energy:

new renewable energy platform anchored with high-quality, contracted, utility scale solar and onshore wind assets

All amounts are in U.S. dollars unless otherwise indicated

VICTORIA, OSLO and NEW YORK — British Columbia Investment Management Corporation (“BCI”), Norges Bank Investment Management and Brookfield today announced the launch of Northview Energy (the “Company” or “Northview”), a privately held renewable energy company that will acquire and own a diversified portfolio of contracted, operating renewable assets in the U.S. and Canada.

Northview Energy will be equally funded and owned by the three investors. The Company will acquire a seed portfolio of assets from leading renewable energy companies currently managed by Brookfield, including assets from Deriva Energy, Scout Clean Energy and Urban Grid.

Northview offers a highly de-risked, stable cash flow profile, generating predictable income with strong downside protection, and resilience across market cycles. The seed portfolio is comprised of 22 contracted, high-quality utility scale solar and onshore wind assets in power markets experiencing strong energy demand growth across the U.S. The assets are newly operational and represent approximately 2.3 gigawatts of operating capacity diversified across six power markets. All assets are backed by long-term power purchase agreements with investment grade counterparties, with a weighted average remaining term of approximately 16 years.

BCI, Norges Bank Investment Management and Brookfield will share customary governance rights and a dedicated management team will be appointed to lead the Company.

Northview has also entered into a Framework Agreement for potential future acquisitions of renewable assets from Brookfield-managed portfolio companies in the U.S. and Canada representing up to $1.5 billion of equity capital.

Future acquisitions are expected to focus on de-risked operating assets, including onshore wind, utility scale solar and battery storage, generating stable and predictable cash flows under long-term contracts with investment grade counterparties. Any future acquisitions made by Northview will be subject to the prior approval of BCI, Norges Bank Investment Management and Brookfield, with each party contributing pro rata to fund acquisitions.

Lincoln Webb, Executive Vice President & Global Head, Infrastructure & Renewable Resources at BCI, said: “Northview is a highly strategic addition to our infrastructure portfolio, bringing together de‑risked renewable energy assets, long‑term contracted revenues, and a clear path for growth alongside likeminded, high‑calibre partners. With a diversified portfolio of new solar and wind projects serving an established base of premium clients, the platform is designed to be resilient in an evolving energy landscape.”

Harald von Heyden, Global Head of Energy and Infrastructure at Norges Bank Investment Management, said: “This marks our first investment in North America and an important step in diversifying our renewable energy infrastructure portfolio. We are pleased to partner with Brookfield and BCI as we seek to capture compelling opportunities in one of the world’s largest renewable energy markets.”

Jehangir Vevaina, Chief Investment Officer for Brookfield’s Renewable Power & Transition group, said: “This partnership marks the creation of a scalable platform for Brookfield and our partners. Northview Energy will be an owner of high-quality operating assets that deliver affordable and clean power to the grid and the framework for future acquisitions provides a clear growth pathway for the vehicle to add de-risked, high-quality, cash yielding assets delivering strong returns.”

Subject to the receipt of required approvals and the satisfaction of customary closing conditions, Northview Energy is expected to officially launch during the second quarter of 2026 under the ownership of BCI, Norges Bank Investment Management and Brookfield. More information about the company can be found at www.northviewenergy.com.

TD Securities acted as exclusive financial advisor to Brookfield on the sale of the seed portfolio and commitment for future acquisitions.

 Brookfield issued the same press release here.

NBIM issued this press release on the deal:

The agreement was signed on 25 February 2026.

Norges Bank Investment Management will pay approximately USD 425 million for its 33.3 percent interest in the portfolio, valuing the total enterprise at approximately USD 2.6 billion. The investment is made alongside British Columbia Investment Management Corporation (BCI) and Brookfield, with each partner holding an equal ownership stake.

"This marks our first investment in North America and an important step in diversifying our renewable energy infrastructure portfolio. We are pleased to partner with Brookfield and BCI as we seek to capture compelling opportunities in one of the world's largest renewable energy markets," says Harald von Heyden, Global Head of Energy and Infrastructure at Norges Bank Investment Management.

The portfolio comprises 22 operating assets totalling approximately 2.3 GW of capacity, including 17 utility-scale solar facilities and 5 onshore wind farms across 11 states and six power markets.

[1] Norges Bank Investment Management is the fund management division of Norges Bank. All unlisted (or direct) investments in real estate and renewable energy infrastructure are made and managed by subsidiary structures set up by Norges Bank.

Alright, week off in Quebec but this is a huge deal which I need to cover quickly.

I would invite my readers to learn more about Northview Energy here.

A quick overview of the company:

The supplier of choice for the organizations and enterprises that power the world economy forward. Created to meet the growing demand for reliable, large-scale renewable energy solutions from enterprise customers. Operating across North America with multiple owned and operated renewable sources, backed by long-term institutional capital. Improving life through energy. 

Our clean energy assets are newly developed and operational, built to the highest standards and generating power in as little as 6 months from standing start. 

Existing enterprise clients and organizations already take 99% of current renewable energy capacity, with significant demand for more. 

We have a roadmap of planned expansion across energy types and locations to grow our footprint and capacity across North America.

Valued at approximately US$2.6 billion, Northview will commence operations in Q2 and is expected to acquire a seed portfolio of assets from companies managed by Brookfield, such as US companies Deriva Energy and Scout Clean Energy.

From the first article: 

The seed portfolio, Brookfield said in a release, is to comprise 22 contracted utility-scale solar and onshore wind installations in markets “experiencing strong energy demand growth across the U.S.”

The projects total approximately 2.3 gigawatts (GW) of operating capacity and are newly operational, according to Brookfield. Norges Bank, Norway's central bank which manages the country's sovereign wealth fund, said the 22 projects are made up of 17 solar facilities and five onshore wind farms across 11 states.

The assets are backed by long-term power purchase agreements with investment grade counterparties, with a weighted average remaining term of approximately 16 years.

That last part is critical because these long-term power purchase agreements offer great downside protection and have inflation adjustments embedded in them.

Lincoln Webb, Executive Vice President & Global Head, Infrastructure & Renewable Resources at BCI, stated it well in the press release:

“Northview is a highly strategic addition to our infrastructure portfolio, bringing together de‑risked renewable energy assets, long‑term contracted revenues, and a clear path for growth alongside likeminded, high‑calibre partners. With a diversified portfolio of new solar and wind projects serving an established base of premium clients, the platform is designed to be resilient in an evolving energy landscape.”

And now BCI, NBIM and Brookfield will co-own the platform and nurture it as it grows and acquires more renewable energy projects.

This is a terrific renewable energy platform backed by three leading global investors. 

Great deal, had to cover it, time to take some time off.

Below, Brookfield CEO Bruce Flatt on The Pulse with Francine Lacqua (5 days ago). 

Great interview, take the time to watch it. 

Canadian Property Management reports CPP Investments inks Nordic data centre deal:

Canada Pension Plan Investment Board (CPP Investments) is furthering its collaboration with the global digital infrastructure company, Equinix, through joint acquisition of the atNorth data centre portfolio, stretching across five Nordic nations. CPP Investments will contribute roughly USD $1.6 billion to secure a 60 per cent controlling interest in atNorth, which encompasses eight operational data centres and three high-density colocation facilities now in development.

“The Nordics are an attractive market for data centre growth and the opportunity to partner with Equinix on this acquisition allows us to deploy capital at scale into a high-quality platform,” says Maximilian Biagosch, senior managing director and global head of real assets with CPP Investments.

The two investors are already part of a three-way partnership with the sovereign wealth fund, GIC, focused on developing hyperscale data facilities in the United States. The atNorth deal aligns with CPP Investments’ data centre strategy and augments publicly traded Equinix’s presence in the Nordics, where it currently operates eight data centres in Helsinki, Finland and Stockholm, Sweden.

The new acquisitions will continue to operate under the atNorth brand, which is headquartered in Reykjavik, Iceland, with presence in Denmark, Finland, Norway and Sweden. The data centre provider has 800 megawatts of installed or in-development capacity, and has power agreements in place to enable an additional 1 gigawatt of capacity and a move into hyperscale services. Its existing portfolio applies renewable energy resources, heat reuse technology and design efficiencies to reduce environmental impacts — also in step with Equinix’s renewable energy footprint for its European operations and target for net-zero emissions globally by 2040.

“Combined with our joint focus on sustainability, this acquisition is expected to enhance our ability to help customers unlock the full potential of the Nordics’ expanding digital landscape,” maintains Bruce Owen, president of Equinix in the EMEA (Europe, Middle East, Asia) market. “We are delighted to partner with CPP Investments, whose long-term track record of investing in the sector is highly complementary to Equinix’s connectivity services.”

“I’m extremely proud to announce the next step in our chapter, welcoming this investment from CPP Investments and Equinix, which will enable access to capital, global enterprise and hyperscale relationships, and supply chain strength required to scale at pace,” says Eyjólfur Magnús Kristinsson, atNorth’s chief executive officer.

The USD $4.2 billion agreement covers both the acquisition and capital for future expansion, with underwriting advanced by Canadian and European lenders. It will be finalized subject to regulatory approvals and other closing conditions.

Last week, CPP Investments issued a press release stating it entered into a joint agreement with Equinix to purchase atNorth, a leading Nordic data center provider:

Leading Data Center Provider in the Nordics Has Operations in Five Countries, Providing Equinix with Access to Capacity to Meet Enterprise, AI and Hyperscale Demand in Key Markets

TORONTO, Canada and AMSTERDAM, Netherlands – February 27, 2026 – Canada Pension Plan Investment Board (CPP Investments) and Equinix, Inc. (Nasdaq: EQIX), the world’s digital infrastructure company®, today announced they have entered into a joint agreement to purchase atNorth—a leading Nordic high-density colocation and built-to-suit data center provider—from Partners Group, one of the largest firms in the global private markets industry.

The US$4 billion enterprise value transaction is subject to customary closing conditions, including regulatory approvals. The agreement between CPP Investments and Equinix will support atNorth in its continued rapid scaling, through capturing opportunities created by rising demand for data center infrastructure. CPP Investments will invest approximately US$1.6 billion, owning an approximate 60% controlling interest, and Equinix will own an approximate 40% stake. The transaction is expected to be immediately accretive upon close to Equinix’s adjusted funds from operations (AFFO) per share.

atNorth’s portfolio includes eight operational data centers alongside several sites under development across Denmark, Finland, Iceland, Norway and Sweden, as well as plans for further expansion, with 1 GW of secured power and a considerable amount of additional future capacity planned. Designed to meet increasing demand for AI and high-performance computing, several of the company’s facilities are liquid cooling-enabled to support high-density workloads. Across its portfolio, atNorth integrates renewable energy sourcing, heat reuse initiatives and efficient modular design to advance circular economy principles and minimize environmental impact.

“This acquisition is a powerful validation of atNorth’s journey and its market position as the leading Nordics data center platform,” said Eyjólfur Magnús Kristinsson, CEO of atNorth. “It further illustrates the strategic importance of the region as Europe’s rising AI powerhouse. I’m extremely proud to announce the next step in our chapter, welcoming this investment from CPP Investments and Equinix, which will enable access to capital, global enterprise, and hyperscale relationships, and supply chain strength required to scale at pace. Our strategy remains firmly rooted in the Nordics, and we will continue to operate independently under the atNorth brand, preserving our dedication to the communities where we operate and the culture and values that have defined our success to date.”

“This transaction builds on our long-standing and highly productive relationship with Equinix,” said Maximilian Biagosch, Senior Managing Director & Global Head of Real Assets, CPP Investments. “It demonstrates our conviction and commitment to the data center sector, where demand continues to accelerate, fueled by continued strong enterprise demand as well as cloud and AI adoption. The Nordics are an attractive market for data center growth and the opportunity to partner with Equinix on this acquisition allows us to deploy capital at scale into a high-quality platform, helping us deliver attractive risk-adjusted returns for CPP contributors and beneficiaries.”

“The scalable sites of atNorth are very complementary to Equinix’s connectivity services and global footprint. Combined with our joint focus on sustainability, this acquisition is expected to enhance our ability to help customers unlock the full potential of the Nordics’ expanding digital landscape,” explained Bruce Owen, President, EMEA, Equinix. “For businesses looking to scale with resilience, Equinix offers a future-ready infrastructure for long-term success, maintaining the jurisdictional and data sovereignty of organizations operating in the region. We are delighted to partner with CPP Investments, whose long-term track record of investing in the sector is highly complementary to Equinix’s connectivity services.”

There are multiple factors contributing to the Nordics’ burgeoning status as a critical hub for the next generation of digital growth. The Nordics region is widely recognized for its strong and resilient economy, supported by a long‑standing emphasis on innovation, research and technical expertise. Renowned worldwide for its leadership in environmentally sustainable projects, the Nordic region provides access to renewable energy sources, bolstered by its naturally cool climates.

Highlights / Key Facts

• As part of the transaction, CPP Investments and Equinix have provisionally agreed to a financing package of US$4.2 billion (€3.6 billion), underwritten by a group of European and Canadian lenders to fund the transaction as well as the capital required to fund the expansion of the business.
• atNorth has an installed and active development pipeline of approximately 800 MW that will come online over the next five years. In addition, it has plans for significant further expansion, with an additional 1 GW of secured power and a considerable amount of future capacity planned, providing a platform for future expansion across the Nordics.
• Equinix currently operates eight data centers in the Nordics, including five in Helsinki and three in Stockholm, contributing to a wider European footprint of over 100 facilities across 20 countries. This regional reach enables customers to deploy infrastructure close to end users and directly connect with AI, cloud, network and enterprise partners anywhere in the world.
• The transaction adds to CPP Investments’ long-standing collaboration with Equinix, which includes a 2024 joint venture alongside GIC to expand the Equinix xScale® data center program.
• The investment further enhances CPP Investments’ global data center strategy and builds out its presence in Europe.
• Designing for responsible operations and in line with atNorth’s sustainability focus, Equinix operates all its European facilities with 100% renewable energy coverage and is on track to achieve its global net-zero target by 2040. The company’s environmental strategy centers around implementing energy efficiency initiatives to optimize energy usage, piloting innovative decarbonization solutions and collaborating with suppliers to address emissions.
• Equinix delivers customer-controlled sovereignty, providing the foundation of digital infrastructure—secure facilities, reliable power, private connectivity—with customers keeping 100% control of their technology stack, data and operational decisions. The company’s global infrastructure enables organizations to access comprehensive ecosystems around the world while maintaining uncompromising local control.
• Equinix was advised by Guggenheim Securities Europe Ltd. as financial advisor as well as Slaughter and May as legal advisor.

Additional Resources

• Sustainability at Equinix [website]
• Unmatched interconnection, scalable colocation and infrastructure across Europe, the Middle East and Africa [website]
• What’s Driving the Digital Economy in the Nordic Countries? [blog]
• The Future of Autonomous Networking: How AI Is Redefining Connectivity [blog]

About atNorth

atNorth is the leading Nordic data center company that offers cost-effective, scalable high-density colocation and built-to-suit services trusted by industry-leading organizations. With sustainability at its core, atNorth’s data centers run on renewable energy resources and support circular economy principles. All atNorth sites leverage innovative design, power efficiency, and intelligent operations to provide long-term infrastructure and flexible colocation deployments. atNorth is headquartered in Reykjavik, Iceland and operates eight data centers in strategic locations across the Nordics, as well as a ninth under construction in Kouvola, Finland, a tenth site in Ølgod, Denmark and an eleventh campus in Stockholm, Sweden. The business has also announced a new mega-site development in the Sollefteå Municipality in Sweden.

For more information, visit atNorth.com or follow atNorth on LinkedIn.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2025, the Fund totaled C$780.7 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

About Equinix

Equinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere. 

It's March break here in Quebec, so I will be very brief.

This is another fantastic acquisition for CPP Investments, partnering with Equinix to acquire atNorth. 

To really appreciate this transaction, I invite you read this 2024 interview where atNorth CEO Eyjólfur Magnús Kristinsson discussed the DEN02 project in Denmark:

In an interview, atNorth’s CEO Eyjólfur Magnús Kristinsson discussed the company’s newest project, DEN02—a mega data center in Denmark set to advance heat reuse for greenhouses and local housing. With an initial capacity of 250MW and plans for significant scalability, DEN02 aims to make atNorth a major data center provider in Denmark.

The center will support colocation and high-performance computing (HPC) needs, especially for AI-intensive workloads, leveraging Denmark’s green energy grid.

The DEN02 data center is strategically designed to support high-density workloads, providing infrastructure for both colocation clients and custom, build-to-suit projects tailored to AI and HPC applications.

The scale and advanced engineering of DEN02 make it one of the largest data center initiatives in Denmark. Designed with sustainability in mind, DEN02 will harness Denmark’s green energy grid and leverage innovative heat reuse methods, providing residual heat for large-scale greenhouses and local housing.

AtNorth’s partnership with WARM, a local greenhouse developer, ensures that DEN02’s heat reuse plan will directly benefit the region, contributing to local food production and reducing heating costs for nearby homes.

Expected to break ground by Q1 2026, DEN02 represents a milestone in atNorth’s growth and its commitment to integrating environmental and community benefits into data center operations.

atNorth’s vision includes strong local engagement, with DEN02 bringing jobs and sustainable infrastructure, positioning Denmark as a strategic hub for AI and HPC in Northern Europe.

Read the whole interview here. 

This company is top, Equinix did its homework here before presenting this deal to CPP Investments which is now taking a controlling stake, adding to its already impressive data center platform all over the world.

Below, following a varied career starting in sales before moving up into managerial roles across the IT industry, Eyjólfur Magnús Kristinsson is now at the helm of atNorth, a pan-Nordic colocation, high-performance computing and artificial intelligence service provider, which soon will be present in all Nordic nations (2024).

Sean Conlon and Pia Sinh of CNBC report the Dow closes more than 500 points lower after hot inflation report, mounting concerns about AI impact:

Stocks dropped on Friday after the latest producer price index data came in much hotter than expected, adding sticky inflation to a list of concerns that has caused market turbulence this month.

The Dow Jones Industrial Average dropped 521.28 points, or 1.05%, to close at 48,977.92. The S&P 500 closed down 0.43% at 6,878.88, while the Nasdaq Composite lost 0.92% to settle at 22,668.21.

The S&P 500 and Nasdaq finished in the red for February amid growing fears about the impact of artificial intelligence on specific industries and the overall economy. Those fears were exacerbated after Jack Dorsey’s fintech company Block said it’s laying off more than 4,000 employees — nearly half of its workforce. Stocks in the financial sector and other areas of the market tied to the economic cycle pulled back Friday.

Stocks linked to private credit were under pressure again as investors anticipated that they could be potentially suffer as a result of UK mortgage provider Market Financial Solutions’ collapse. Apollo and Jefferies were among the laggards, dropping more than 8% and 9%, respectively. Shares of Blue Owl, which has been hit recently in the wake of its liquidity curbs and asset sale, fell about 6%.

Notable software names suffered losses as well Friday as they close out a terrible month. Salesforce tumbled more than 2%, as did Microsoft, which weighed on the Dow. Cybersecurity company Zscaler shed 12% after deferred revenue and billings in the fiscal second quarter missed expectations. CoreWeave fell 18% on disappointing guidance.

Nvidia extended its post-earnings slide with a 4% fall Friday. The stock shed more than 5% on Thursday, a surprise to many investors who remain bullish on the chipmaker given its blowout fourth-quarter results and upcoming product cycle. Market participants attributed the decline in shares to doubts around Nvidia’s deal with OpenAI, weak sentiment over the AI trade and skepticism about whether hyperscalers’ lofty AI capital expenditures are sustainable.

Fueling the downbeat sentiment, January’s producer price index — a measure of wholesale inflation — showed a 0.5% increase for the month. Economists polled by Dow Jones saw the headline reading coming in at 0.3%. Perhaps more concerning is that the core PPI reading, which excludes food and energy prices, recorded a 0.8% gain, much more than the 0.3% rise economists anticipated.

Stephen Kolano, chief investment officer at Integrated Partners, views the PPI report as an additional complication for investors on top of the already-existing anxieties surrounding not just AI capex and the risk of its disruption to industries but also other factors such as stress in the private credit market. Noting that the inflation reading seems to be more services driven, he thinks it’s a sign companies are possibly starting to pass through the cost of tariffs to the end consumer in order to maintain their margins.

“Inflation isn’t solved yet,” he said, adding that it creates this conundrum for the Federal Reserve of deciding whether to cut interest rates to spur growth or to hold steady to continue to fight inflation. “It just creates this uncertainty around which way is policy going to go in the remainder of the year.”

That’s not to mention the state of the labor market as another worry, Kolano said. Even though job growth last month was much better than expected, the investment chief said he isn’t sure that the labor market is stabilizing given that layoffs have been picking up. In fact, Challenger, Gray & Christmas reported earlier this month that layoffs in January hit their highest total for that month since the global financial crisis.

“I don’t see a clear sign that unemployment is not going to move higher just yet,” he said.

The Nasdaq posted a decline of more than 3% in February, seeing its worst monthly performance since last March. The iShares Expanded Tech-Software ETF (IGV) is down nearly 10% for the month, bringing its year-to-date losses to almost 23%. The S&P 500, meanwhile, recorded a loss of close to 1% in February, while the Dow climbed about 0.2%. 

Rian Howlett  ,  Karen Friar and Jake Conley of Yahoo Finance also report the Dow, S&P 500, Nasdaq fall to end volatile month as AI worries buffet markets:

US stocks sank on Friday after a measure of wholesale inflation came in hotter than expected and Block's (XYZ) surprise shakeup turned the spotlight on AI disruption risks.

The Dow Jones Industrial Average led the way down with a loss of 1%, or more than 500 points. Meanwhile, the Nasdaq Composite fell 0.8%, while the S&P 500 dropped 0.4%, respectively, on the heels of sharp closing losses for the tech-heavy indexes.

The Dow barely eked out a gain in February, keeping its nine-month winning streak intact, with the blue-chip index rising 0.17% for the month. The Nasdaq and S&P 500 declined more than 3.3% and 0.86%, respectively, for the month.

Ongoing worries over private credit rippled through the market, while concerns that AI could wreak havoc across a swath of industries also came into focus. Those fears were stoked on Thursday when Block co-founder Jack Dorsey said the fintech will cut nearly half its workforce due to AI productivity.

Elsewhere in corporate news, Netflix (NFLX) shares rose after the streaming giant abandoned its pursuit of Warner Bros. Discovery (WBD). That left rival Oracle (ORCL)-linked bidder Paramount Skydance (PSKY) to clinch a buy of the Hollywood studio, giving its stock a boost, too.

On the macro front, January’s producer price index rose 0.5% month over month, showing that wholesale inflation grew at a faster pace than the 0.3% rise economists expected. Core PPI — which excludes volatile food and energy prices — of 0.8% for the month also exceeded forecasts of 0.3%.

Looking ahead, Berkshire Hathaway (BRK-B, BRK-A) CEO Greg Abel is expected to publish his first annual shareholder letter on Saturday, after taking over from Warren Buffett. It will come out alongside the conglomerate's quarterly and 2025 update. 

Software got punched in the gut in February

It's fitting that February ended with another tech sell-off led by software, as the iShares software ETF (IGV) dropped roughly 10% for the month after probing last summer's lows earlier this week. 

A few names bucked the trend — RingCentral (RNG) gained about 40% while Cisco (CSCO) and SAP (SAP) were little changed. But the story is the breadth of the red and the technical damage.

Microsoft (MSFT) is down almost 9%, wiping out over $270 billion in market capitalization, while Oracle (ORCL) fell nearly 13% for a $60 billion drop. Palantir (PLTR), Intuit (INTU), and Palo Alto Networks (PANW) each shed about $25 billion.

On the other end of the tape, the biggest drawdowns were ugly: Unity (U) and Atlassian (TEAM) were both off over 35%, while Asana (ASAN) declined 30% and Zscaler (ZS) only a little less.

Alright, another crazy week in the US stock market, where we once again saw more selling of tech stocks in general, including beaten-down software stocks, although they look to be bottoming here.

Here are this week's best-performing large-cap stocks (full list here): 

Among them are Paramount Skydance, Netflix, Dell, Block, and Thompson Reuters.

And here are this week's worst-performing large-cap stocks (full list here):

 Among them are Novo Nordisk, First Solar, KKR, and Apollo Asset Management.

 More impressive this week was how some of the mid-cap stocks rallied hard (full list here):

Among them are Applied Optoelect, Palvella Therapeutics, Iovance Biotherapeutics, and 10X Genomics.

Now more than ever, it's a market of stocks; you really need to pick your spots carefully. 

In other big news, cutting nearly 40% of its workforce, Block loudly professed that the days of AI taking the jobs of humans has arrived. 

Is a massive AI deflationary wave in the making? Maybe, too soon to tell. 

Alright, enjoy your weekend, that's a wrap.

Below, BMO Senior Equity Analyst Brennan Hawkin joins 'Closing Bell Overtime' to talk the state of the private credit markets as the sector sees a downturn.

Next, Dan Ives, Wedbush Securities, joins 'Closing Bell' to discuss the rough week for shares of Nvidia, the recent funding round from OpenAI and much more.

Jason Lemire on LinkedIn shows why Nvidia's real liabilities are more than twice what is shown on the balance sheet (see his post here).

Third, Warren Pies, 3Fourteen Ventures, joins 'Closing Bell Overtime' to talk why he is bearish on the markets due to the impact of AI on labor.

Fourth, Tom Lee explains why February felt worse than it was, why Nvidia’s valuation stands out, and why March could be a turnaround month.

Lastly, legendary macro investor Stan Druckenmiller joins Hard Lessons for a conversation with Iliana Bouzali, Global Head of Derivatives Distribution and Structuring at Morgan Stanley. 

Druckenmiller reflects on his early career and how he learned to act decisively and change course quickly when the facts on the ground shift. Hear how he would construct a portfolio if he had to start over today, why contrarianism is overrated, and which stock he regrets selling too early. 

Amazing interview, Stan is the man, listen to his comments and why they went into biotech (totally agree with him), bought Nvidia early, why he's not a contrarian but not scared to go against the crowd when he has conviction and how he didn't learn macro at Soros but how to position properly when he has conviction.

Sophie Baker of Pensions & Investments reports liquidity focus pays off for Ontario Teachers’ as dual CIOs mark two-year milestone:

It’s been two years since the Ontario Teachers’ Pension Plan restructured its leadership team, appointing two people to oversee investments — and despite some major changes and challenges in global markets, the so-called dual CIOs haven’t made any knee-jerk reactions. 

Rather, the focus for the two has largely been creating liquidity in the C$269.6 billion ($197 billion as of June 30) portfolio. 

"We have been quite proactive in terms of generating liquidity on the private asset side, and seen some good success there, particularly in the market," Stephen McLennan CIO-asset allocation, said in an interview. "We're in position now where we would like to deploy into attractive opportunities and continually assess what the right balance is between passive and active to generate active returns." 

"We also want to spend a lot of time focusing on the more technical definition of liquidity, how we manage the balance sheet, what we need for margin calls and making sure we have the flexibility in the portfolio across the markets," he said. 

McLennan and Gillian Brown, CIO-public and private investments were named CIOs in January 2024 by CEO Jo Taylor. Their appointments split the role previously held by Ziad Hindo (now senior advisor at Bridgewater Associates), separating the responsibilities of the position, and Taylor has dubbed them dual CIOs, each with distinct lanes of responsibility, they said. Among the so-called Maple 8 of Canada's largest public pension funds, OTPP is the only with this structure.

The thinking behind splitting the role was to acknowledge a changing world with more geopolitical conflict, greater focus on inflation and central banks, disjointed activity in markets, and disruption to business models, they said.

Taylor looked into how to "lean into value creation, thinking strategically about those businesses and how we go forward," Brown said in the same interview. "It was existential, almost a bandwith questions to involve CIO operating model."

Brown -- previously head of capital markets, who joined in 1995 -- oversees the public and private investment functions, covering equities, infrastructure and natural resources, venture growth, real estate and capital markets investment departments. 

McLennan oversees the overall asset allocation mix, with an eye on total fund performance and management portfolio risk. He's also responsible for the liquidity management, investment allocations and portfolio optimization. McLennan most recently oversaw total fund management comprising the portfolio construction, treasury funding and global trading capabilities, and joined the pension fund in 2003.

Between them, they're running a 475- person investment team. They overlap in a few areas. Two such examples are Europe, Middle East and Africa coverage and Asia Pacific. While both regional teams report to McClellan, they are more active in nature, so in line with Brown's responsibilities, they said. Ass of December 31 2024, 70% of total investments were EMEA and 8% in APAC.

"It's nice for me having a trusted partner," Brown said. Added McLennan: "It's good to have somebody you can trust also deals off challenging -- as well as positive -- circumstances." 

Challenging period since appointments as dual CIOs

Although the executives haven't made any "knee-jerk" moves in the portfolio in response to challenging global markets and powers, that's not to say they haven't had a lot to think about. 

For McLennan and Brown the US administration that came into power in January 2025 has been top of mind with market movements as President Donald Trump unveiled a raft of tariffs, an example of key consideration. However, the portfolio has been steady in light of that volatility, they said. One-third of the gross investments were in the US as of December 31 2024,

"We need to be on top of that since it has impacted global markets, which impacts all the portfolios. McLennan said. "Areas we have been spending some time on equity markets-- public and private fixed income in terms of both interest rates in the US and globally; currencies and commodities we are trying to digest and think through what the new administration means, not only this year, but for the years to come." 

The CIOs have also been cognizant of the need for diversification and when to start looking beyond the US in terms of equity performance that's been dominated by technology stocks. 

"Many are talking including ourselves, about diversification? Are we getting full diversification? Given the equity index is driven by a few names, it's a trend that has been beneficial for all investors, particularly non US investors. But is that going to continue forever?" McClellan said. "It doesn't mean that it's going to end, but at some point, there are valuations and other things we should be cognizant of." 

The fund achieved a 2.1% net return on investments for the six months ended June 30 with the total fund returns driven by public assets. Its asset mix of June 30 was 37% equity, including public and private equity and venture growth. 24% fixed income, 20% inflation, sensitive assets, commodities, natural resources, inflation edge. 24% real assets, real estate and infrastructure, 30% credit and 10% absolute return strategies, the asset mix includes 28% in funding and other assets such as overlays, the five-year and 10-year annualized net returns were 7.5% and 6.9 % respectively. 

Evolving private markets thinking and approaches

OTPP has been looking at where to be a direct investor and to have a more governance and control over private equity holdings, and when to partner with others. The fund's private equity allocation was 21% as of June 30.

"My view is, it doesn't make sense to have really dogmatic approach, and it's more about understanding what we are good at." Brown said. "The partnership question is interesting. Some investors use it to think 'fund- plus-partner'. We want to be humble about where we need more expertise, such as in sectors that require really specialized knowledge. Therefore we pick the right partners to work with on those assets." 

OTPP has always had assets that it co-owns without necessarily having a fund relationship, and has also always "had a lot of partners throughout the portfolio; so it's more about making sure we unlock the right ones to find the right tool for the situation," she added. 

Within its venture growth portfolio, which had C$10.4 billion in net assets as of December 31 2024, 42% was direct investments in North America-based assets, 21% in direct APAC investments, 13% in direct EMEA investments, and the remaining 24% was in funds. 

The fund paused private investment activities in China in early 2023 and more recently, made the difficult decision to close its Hong Kong office. The majority of the staff relocated to Singapore and Asia-Pacific region as a whole remains important. Brown said, with private equity, infrastructure and venture growth teams active in the region. 

At the same time, Bloomberg reported that the Hong Kong office was closed as OTPP optimized its footprint in the region, having added Singapore, Mumbai offices. The team in Hong Kong primarily focused on outward markets -- including Australia, Japan, South Korea -- and the spokesperson said activities could be effectively and efficiently served out of Singapore.

Executives have also been talking about where they see growth opportunities. "I think India has become more of a focus for growth in that context, as a market that is still maturing with good depth of capital markets." Brown added. 

And while the major portfolio changes haven't been in the cards for the dual CIOs, they have made a key addition to their private markets capabilities amid ever-changing investment pacing and exit environments and the increasing importance of accountability and monitoring. In that context, McLennan and Brown said 

In January 2025, OTPP created its portfolio solutions group, a team of 37 people, monitoring and enhancing performance, improving best practice and providing more centralized value creation oversight in a single cross-asset function. About 80% of OTPP's portfolio is actively managed and private markets accounts for a large proportion of that total. 

The team is staffed with existing OTPP members, led by Executive Managing Director Kevin Kerr, and works with deal teams on underwriting at point of entry, assists with variations and perspectives, refreshing value creation plans ahead of exits, helps deliver on key performance indicators and gets involved in an asset when it's not performing versus expectation. 

"They have been identifying the important areas where we want deeper subject management expertise, for example, talent management, new relationships, capital market access for technology and data opportunities," McClellan said. "In a world where realizations globally have slowed down, (and) we're owning assets for a longer period, we're making sure the holding period gets more attention, not less." 

The team also brings an impartial view on assets. "At Teachers', we believe challenge is a healthy thing," Brown said. "People can fall in love with them, with assets that they hold, so it's good to have external person say, is that really a good process, a good holding?" 

This is a really great in-depth article which I wanted to share with my readers.

It not only provides a glimpse into the dual-CIO structure at OTPP, how it works, their respective functions, but also how they collaborate with each other and across asset classes, leveraging off external partners and making sure internal teams stick to their value creation plan.

Gillian Brown has been around OTPP for a very long time (since 1995), has worked with some great CIOs (Bob Bertram, Neil Petroff and Ziad Hindo) and she knows her stuff across public and private markets.

Stephen McLennan has also been there since 2003 and he was in charge of total fund management prior to becoming CIO, Asset Allocation. His group has to think more macro and how to extract the most out of the total fund to deliver on their objectives.

The  dual CIO structure has been tried before -- at AIMCo where it unfortunately failed--  but in this case, I really think Gillian and Stephen complement each other well and they're making it work.

Jo Taylor isn't an easy boss, he has high expectations from them and other senior executives and so it all has to work or else he"d be the first to pull the plug.

And the Portfolio Solutions team which Kevin Kerr manages is critically important in this process, they really need to realize on value creation, see when dispositions make sense, and work on assets that need to be worked on. 

One thing Teachers' does well is leverage off its partners, be it in private equity, venture, hedge funds, infrastructure, real estate to really get a good sense of what is going on in each asset class.  

Alright, I'm going to wrap it up there, make sure you read the latest news at OTPP here. 

I will soon be covering OTPP's 2025 results and look forward to catching up with Gillian, Stephen and Jo.

Below, the CNBC Investment Committee debate the software sector as Stephanie Link and Malcolm Ethridge makes some moves in the space. 

Also, Dan Niles, founder of Niles Investment Management, offers a measured view of the stock sell-off driven by concerns over AI disruption, saying companies perceived as linked to OpenAI were caught up in an unsustainable wave of speculative buying. 

I don't know, as I stated last Monday, it's time to nibble on software stocks, I think AI disruption fears are running amok. Also see this great discussion on Instagram on how AI is reshaping software.

Nicolas Van Praet of the Globe and Mail reports Caisse posts 9.3% return in 2025 on gains from stock holdings:

Caisse de dépôt et placement du Québec tallied an 9.3-per-cent return last year as gains from stock holdings offset a neutral performance by real estate investments in an environment marked by ongoing trade strife, global conflict and the expansion of artificial intelligence across society.

Net assets stood at $517-billion at the end of 2025, up from $473-billion the year before, the Montreal-based pension fund manager said in a statement Wednesday. The annualized return over five years was 6.5 per cent.

“It’s really a new world order out there,” Caisse Chief Executive Charles Emond said in an interview, noting the power of AI-related themes over stock markets among other major shifts taking place. Investment diversification remains the key to delivering stable returns as the uncertainty persists, he said.

“The main risk we’re dealing with – and I would have never thought I’d say that during my career – is the U.S.,” Mr. Emond said. U.S. exceptionalism is still there, but it has eroded lately and “the level of trust” has been put to the test, he said. “It’s actually paid off to be invested elsewhere.”

The U.S. remains the deepest, most liquid and most attractive market for investors and the Caisse is not exiting the country, Mr. Emond insisted. But it is being more prudent in the way it invests there.

The pension fund pared back U.S. stock holdings last year while boosting credit activity. It also sold some U.S. office buildings while hedging more than usual on its U.S. dollar exposure. Roughly 40 per cent of its total assets are invested across the border.

The pension fund’s gain on equity market investments was 17.7 per cent for the year, the third best over the past decade, as it added to positions in other markets such as Europe and South Korea. Its infrastructure portfolio generated a 9.2-per-cent showing, driven by energy, ports and highway investments, while fixed income returned 6.6 per cent.

On the other end of the spectrum, the Caisse’s real estate holdings remained under pressure, delivering a 0.2-per-cent return as the market recovers. Private equity, usually a strong motor for the pension fund, generated a 2.3-per-cent gain as profit growth slowed for its portfolio companies and valuation multiples dropped in the technology and health care sectors.

The mixed results, which closely matched the previous year’s 9.4-per-cent return, highlight the magnitude of the challenges for Mr. Emond, a former Bank of Nova Scotia executive who took over as Caisse CEO in early 2020.

His tenure, which was recently extended to 2029, has been fraught with turmoil from the COVID-19 pandemic, record inflation, and wars in Ukraine and the Middle East. Donald Trump’s reclaiming of the White House has presented a new test: The President’s unpredictability has repercussions for trade and on the decisions of central bankers and corporate leaders.

The Caisse, which is independently run at arm’s length from the Quebec government, has a dual mandate to manage deposits with a view to achieving optimal returns while contributing to Quebec’s economic development. It is omnipresent in the province, investing in companies such as Alimentation Couche-Tard Inc. and WSP Inc. and pushing into transit development with Montreal’s $8-billion Réseau express métropolitain light-rail system.

Quebec Premier François Legault said last November that the Caisse “needs to do even more” to back local projects and business in the face of Mr. Trump’s trade war against Canada, which has hurt aluminum makers and forestry companies in the province. “I think the situation is critical right now,” the Premier said at the time.

The Caisse now has assets in Quebec topping $100-billion, a target it set three years ago. It hasn’t set a new goal, vowing instead to be “more intentional” on the impact of future investments in strategic sectors such as natural resources, defence and energy, Caisse executive vice-president Kim Thomassin told reporters at a news conference.

Among its biggest domestic deals in the past 12 months, the Caisse bought Innergex Renewable Energy Inc. for about $2.8-billion and struck a $1.3-billion deal with Telus Corp. for a minority stake in a new cellphone tower spinout called Terrion. It also made a US$100-million equity investment in Champion Iron Ltd to support the miner’s acquisition of Norway’s Rana Gruber SA.

Earlier this month, the pension fund briefly suspended its deal-making with DP World Ltd. in the wake of revelations linking the chairman and chief executive of the logistics multinational to disgraced financier Jeffrey Epstein. It has since resumed working with its long-standing partner after the executive resigned. 

The only thing I will mention about this Epstein thing is the head of global ports operator DP World has left the company after mounting pressure over his links to convicted sex offender Jeffrey Epstein.

The Caisse briefly suspended its operations after discovering this and has since resumed them. Obviously they had no idea Sultan Ahmed bin Sulayem exchanged hundreds of emails with Epstein.

Anyway, today is a very big day because La Caisse posted its results and despite weakness in private equity and ongoing issues in real estate, they were solid powered by public equities, credit and infrastructure. Its Quebec portfolio also did well.

Now, this morning I virtually assisted the press conference from the comforts of my home and took a quick image of Charles Emond, Kim Thomassin and Vincent Delisle (at top of this post).

I must admit, that was the first time I virtually assisted this press conference and to my surprise, I thoroughly enjoyed it, thought Charles, Kim and Vincent did a great job and the slides which you will see below gave a perfect overview.

Typically I find these press conferences dreadfully boring and tiresome but this one was very well done, and for the most part, reporters asked decent questions and I told Charles, Kim and Vincent afterwards that they should post it publicly on their YouTube channel.

I'm not kidding, it was that good and if I was able to embed it, it would save me a lot of time explaining things.

One of the most important questions Charles tackled was why their underpeformance relative to benchmark over the last year (9.3% vs 10.9%) and whether it's worth investing in private markets.

Charles explained that they have a mandate from depositors to deliver returns taking risks into account and they have delivered strong gains over the long run by taking a diversified approach across public and private markets and this approach offers higher risk-adjusted returns. 

I'm paraphrasing but if I get the transcript in French, I will post it here and I thought that was extremely well answered. 

The only question I didn't like (it always irritates me) is how did La Caisse perform last year relative to its peers. Charles said their biggest client whose portfolio is closest to CPP Investments gained 9.8% last year which was better than CPP Investments' 7% return over last nice months and OMERS' 6% gain last year but we are comparing apples to oranges because the asset mixes aren't the same (CPP Investments and OMERS have more private market exposure).

There are so many factors that go into comparing returns across pension funds that I absolutely hate these questions and besides, they're all in great financial health, have way more assets than long-dated liabilities (and that's what ultimately counts, not outperforming each other). 

One year those that have more public market exposure will fare better, another those that have more private market exposure will fare better. Who cares? 

All of the Maple 8 funds underperformed Norway's sovereign wealth fund which gained 15.1% last year, it means absolutely nothing to me (all about asset mix!!).

Alright, let me get to this morning's press conference but before I do, some more articles in French:

•  La Caisse à la traîne pour une troisième année d’affilée
• La Caisse annonce un rendement de 9,3 % en 2025 
• Rendement de 9,3% pour la Caisse en 2025, sous la cible pour la troisième année consécutive 
• La performance de La Caisse pour 2025 a été en deçà des attentes 

Basically the French media is savage, La Caisse underperformed its benchmark for a third straight year, but overall performed well and beat OMERS (again, who cares?).

Morning Press Conference With Charles Emond, Kim Thomassin and Vincent Delisle

As mentioned above, I really liked this morning's press conference, so much so that I believe La Caisse should make it public and post it on YouTube as soon as possible (la transparence avant tout!).

Before I get to the slides, here is La Caisse's press release stating it posted a 9.3% return in 2025 and net assets of $517 billion:

• The depositor plans are in excellent financial health
• The base plan of the Québec Pension Plan, representing the pensions of more than six million Quebecers and the largest fund invested with La Caisse, earned a return of 9.8%
• The ambition of $100 billion invested in Québec achieved one year early

La Caisse today presented its financial results for the year ended December 31, 2025. The weighted average return on its 48 depositors’ funds was 9.3% for one year, below its benchmark portfolio’s 10.9% return. Over longer terms, performance is above the benchmark portfolio: over five years, the annualized return was 6.5%, with the benchmark portfolio at 6.2%; over ten years, it stood at 7.2%, against the benchmark portfolio’s 6.9%. As at December 31, 2025, La Caisse’s net assets totalled $517 billion.

In 2025, the environment was marked by geopolitical tensions and persistent tariff uncertainty. Nevertheless, the global economy proved resilient and stock markets once again posted a robust performance. Although central banks generally lowered their key rates, long-term bond yields moved in different directions, falling in the United States but rising in several other countries, including Canada.

“Last year, our overall portfolio posted a good return, with the right level of risk for our depositors. As public markets were particularly strong, they were the main driver of our annual performance. In an environment shaped by uncertainty and profound changes that are likely to persist, diversification remains essential, allowing each asset class to play its part across different market conditions,” said Charles Emond, President and Chief Executive Officer of La Caisse.

“Looking back at the past five years, markets have been volatile and difficult to follow, with pronounced differences between asset classes and sharp fluctuations from one year to the next. Having stayed the course with numerous transactions in key sectors around the world, the advancement of structuring projects in Québec, and the rollout of a new climate strategy even against strong headwinds, all while maintaining the excellent financial health of our depositor plans, are all reasons to be proud of the role and impact of this major institution for Québec,” he added.

Return highlights

As at December 31, 2025, La Caisse’s investment results totalled $43 billion for one year, $134 billion over five years and $245 billion over ten years.

Forty-eight depositors with different objectives

La Caisse manages the funds of 48 depositors—mainly for pension and insurance plans. The overall portfolio’s one-year, five-year and ten-year returns represent the weighted average of these funds. To meet their objectives, investment strategies are adapted to individual depositor risk tolerances and investment policies, which differ considerably.

For one year, returns for La Caisse’s nine largest depositors’ funds ranged from 8.6% to 10.4%. Over longer periods, the annualized returns varied between 4.6% and 7.8% over five years, and between 5.8% and 8.0% over ten years.

The largest fund invested with La Caisse, the base plan of the Québec Pension Plan, administered by Retraite Québec, posted a return of 9.8% for one year, 7.8% over five years and 8.0% over ten years. As at December 31, 2025, its net assets were $163 billion, including the additional plan.

Equities

Equity Markets: Beneficial geographic diversification

Stock markets experienced a year of rotation in 2025, with the U.S. market being perceived as more uncertain, and giving up ground to other stock markets, such as those in Europe, Canada and emerging countries. The latter benefited from good performances in a variety of sectors, including technology, as well as materials and finance. Sound geographic diversification, combined with the quality of execution by portfolio managers, enabled the Equity Markets portfolio to record a return of 17.7%, its third-best performance in ten years, and to outperform the index in the vast majority of mandates. The benchmark index stands at 18.2%. The difference over the period is mainly due to the more limited contribution of certain Québec stocks in the portfolio, as well as its low exposure to the gold segment, which grew sharply during the year.

Over five years, the annualized return was 12.4%, above the 12.1% return of the benchmark portfolio. Performance therefore outpaced the benchmark index despite growing concentration of gains in the main stock market indexes during the period. The portfolio benefited from the 2021 changes aimed to take advantage of technology stocks. The launch of systematic management strategies, which leverage data processing capabilities using augmented intelligence, has also had a significant positive impact.

Private Equity: Slower growth affects portfolio

In 2025, the Private Equity portfolio posted a 2.3% return. This was the result of slowing earnings growth for portfolio companies and lower multiples in the technology and health care sectors. Some investments, although performing well since the initial investment, experienced a setback and weighed on performance during the year, despite the good performance of companies in the industrials sector. The benchmark index, half of which is made up of public stocks, returned 12.6%, as public markets were much more robust than the private market.

Over five years, the portfolio has been one of the main drivers of overall performance, boosted by investments in the industrial, financial and technology sectors, delivering an annualized return of 11.6%. Over the period, the more moderate performance of a handful of stocks explains the difference with the portfolio’s performance relative to its index, which stood at 14.7%.

Fixed income

Credit activities are a strong vector of performance

The majority of the Fixed Income asset class is comprised of the Credit and Rates portfolios, with the latter serving as a source of liquidity for the overall portfolio. In 2025, the asset class generated a 6.6% return, above its benchmark index’s 4.6%. The Credit portfolio was a strong performance driver, with a return of 9.6%. It recorded its best ever performance against its index, which posted a 6.6% return, due to results obtained in the private segment, emerging market sovereign debt and the quality of execution by the teams.

Over five years, the asset class posted an annualized return of -0.2%, compared with a benchmark return of -1.1%. The good performance of the Credit portfolio over the period, driven by Capital Solutions and Corporate Credit activities, boosted the asset class, but failed to offset the impact from the strongest bond market correction in 50 years that occurred in 2022.

Real assets

Infrastructure: Consistent performance in diverse market environments

The portfolio has maintained its momentum of recent years, delivering a return of 9.2% in 2025. It benefited from an attractive current yield of 5.0% and the quality of portfolio assets. Energy, ports and highways were the largest contributors to performance. The benchmark index, made up entirely of public stocks, returned 13.4%. It was buoyed by the growth of companies in the electricity segment, which continues to be stimulated by the historic demand for artificial intelligence and weighs heavily in the index.

Over five years, the annualized return was 10.8%, outpacing the index’s 8.0% return. The portfolio continues to benefit from asset diversification, with the energy, transportation and telecommunications sectors leading the way, as well as from its strong current yield, across very different cycles over the period, marked in particular by higher inflation.

Real Estate: Progress on turnaround plan in an industry still under pressure

For one year, the portfolio posted a 0.2% return, compared with 1.8% for its benchmark index. In a gradually recovering market, direct portfolio assets in the logistics and residential sectors, as well as offices and shopping centres, posted a 4.4% return, a sign that rental incomes and property values are stabilizing. However, this return was offset by the high cost of financing. Lower performance of assets in China largely explains the difference with the index. It should be noted that the teams were particularly active in portfolio turnover, achieving a high transaction volume, totalling nearly $11 billion, or double the previous year’s figure.

Over five years, the portfolio’s annualized return was 1.2%, affected by its exposure to the office sector, which has been weakened by changes in working habits, but whose effects were mitigated by favourable performance in logistics. The benchmark index returned 1.4%, reflecting the challenges faced by the industry in recent years.

Global strategies that generate value

La Caisse’s teams also employ global strategies to optimize performance, including positioning on macro factors and foreign currency management:

• Macro tactical strategies contributed positively to overall portfolio performance in 2025, successfully navigating the volatility seen during the year, particularly in April with the unveiling of U.S. tariff policy, which prompted significant movement in global financial markets. These overlay activities, which are designed to improve the risk-return profile and enhance overall performance against the benchmark portfolio, have generated $1.2 billion in added value over one year.
• While the portfolio’s exposure to foreign currencies had an adverse impact on 2025’s overall performance due to the sharp depreciation of the U.S. dollar, the partial hedging of this currency put in place by the teams nevertheless protected $3.6 billion.

Québec: Ambition of $100 billion achieved ahead of schedule, with investments in local companies and impactful projects

In 2025, La Caisse’s assets in Québec reached $100.1 billion. The organization deployed $6.3 billion in new investments and commitments during the year.

Among the teams’ accomplishments, we note:

Support to grow companies in key sectors

• Innergex: Privatization of this renewable energy leader, bringing the enterprise value to $10 billion
• Boralex: $200-million financing, doubling existing debt financing in this company of which La Caisse has been a major shareholder for nearly ten years
• Honco Group: Minority interest to consolidate Québec ownership of this steel processing specialist
• Ocean Group: Additional investment in the context of the shareholder structure evolution of this maritime industry leader in Québec and Canada, bringing La Caisse’s stake to $120 million
• Germain Hotels: Lead of a $160-million financing round to accelerate its expansion and support the company’s succession

Structuring projects: An edge for Québec

• REM: Commissioning of the Deux-Montagnes branch, tripling the network’s coverage, with 19 stations spanning 50 km
• TramCité: Announcement of the six consortia qualified for two major contracts in the request for expressions of interest process, an important step in the procurement process for this 19 km tramway project in Québec City
• Alto Québec City-Toronto high-speed train: Cadence team, led by CDPQ Infra, selected as private partner by the Government of Canada and contract signed with the project authority
• Terrion: Transaction worth close to $1.3 billion to create, with Telus, the largest specialized wireless tower operator in Québec and to establish the head office in Montréal
• Laurentian Bank: Support for the acquisition transaction by National Bank and Fairstone Bank, through guarantees obtained to maintain Laurentian Bank’s commercial head office and to relocate Fairstone Bank’s head office to Québec
• AI expertise: Launch and implementation of a program powered by Vooban to support company productivity in the face of tariff challenges; recruiting for a new cohort currently underway

Climate: A new strategy for increased impact in all sectors of the economy

After exceeding the climate targets set in 2017 and then raised in 2021, La Caisse has developed a new strategy to accelerate the decarbonization of companies and significantly increase its investments linked to the energy transition by 2030, both in Québec and internationally. The objective remains: create sustainable value for depositors while managing the climate risks associated with its portfolio assets. La Caisse’s approach was well received by the Canadian group Shift: Action for Pension Wealth and Planet Health, which placed it first in its annual ranking.

By 2030, La Caisse aims to increase its Climate Action investments to $400 billion, in line with its commitment to carbon neutrality by 2050. This strategy is based both on investments in companies that clearly and credibly integrate climate issues into their business model, and on investments in climate solutions, i.e. companies, activities or technologies that help reduce carbon emissions. To find out more, visit this page or see the Sustainable Investing Report to be published in spring 2026.

Financial reporting

The costs incurred by La Caisse to conduct its activities include operating expenses, external management fees and transaction costs. In 2025, operating expenses decreased to 21 cents per $100 of average net assets, compared with 23 cents in 2024 and 26 cents in 2023. This significant reduction in the operating expenses over the past two years reflects the efficiency efforts made by the organization, particularly since the integration of its real estate subsidiaries. The total cost of internal and external investment management is 74 cents per $100 of average net assets as at December 31, 2025, compared with 67 cents in 2024 and 83 cents in 2023. Note that this figure varies depending on different factors, such as asset size, transaction volume and external management fees paid. Cost management remains a priority for the organization and, based on external data, La Caisse’s cost ratio is among the lowest in the industry.

The credit rating agencies reaffirmed La Caisse’s investment-grade ratings with a stable outlook, namely AAA (DBRS), AAA (S&P), Aaa (Moody’s) and AAA (Fitch Ratings).

About La Caisse

At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long-term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec’s economic development.

As a global investment group, we’re active in the major financial markets, private equity, infrastructure, real estate and private credit. As at December 31, 2025, La Caisse’s net assets totalled CAD 517 billion. For more information, visit lacaisse.com or consult our LinkedIn or Instagram pages.

La Caisse is a registered trademark of Caisse de dépôt et placement du Québec that is protected in Canada and other jurisdictions and licensed for use by its subsidiaries. 

And here are the slides that accompanied the press conference this morning:

 

The slides provide a great snapshot of key activities by asset class and overall returns and along with the comments Charles Emond, Kim Thomassin and Vincent Delisle made during the press conference, I think they covered it all very well.

I would urge all of Canada's Maple 8 to do the same thing and post your press conferences on YouTube just like Norway's NBIM does. 

I'll give La Caisse's Communications department an A for this press conference (A+ if they post it on YouTube and release annual report at the same time). 

Discussing 2025 Results With Vincent Delisle, Head of Liquid Markets at La Caisse

This afternoon, I had a chance to talk results and markets with Vincent Delisle, Head of Liquid Markets at La Caisse.

I want to thank him and Conrad Harrington who set up the Teams meeting.

Vincent began by giving me an overview of the results:

We're quite happy with the results. The RRQ, the CPP equivalent, comes in close to 10%. These results exceed the ask from our depositors. The funds are well funded, in very, very good health. What we're seeing is some strong returns from Public Equities, Infra and Credit which had a had a great year. Real Estate, still tough, but better than it was last year. Private Equity is somewhat disappointing for the year, coming in at 2% but it's been a significant tailwind in terms of performance on a 5 and 10 year horizon. Our business is to have a diversified portfolio focused on requirements from our depositors, adjusted for risk. So we're happy with the returns that we generated in today's environment where public equities had another stellar year in 2025, so it's been three years of very robust performing for all things public equities. It has an impact on our value added, because obviously our private portfolios -- private equity portfolios, benchmarked against that, Infra as well. So these are, these are challenges for our industry in terms of how the performance is perceived and and received, but we're quite happy with how we executed last year.  

I then asked Vincent specifically about PE: "A couple questions here on private equity. I don't know if you even know this. Were the returns mostly due to significant write downs taken in one or two investments, or was it just broad based valuation contraction of the multiples?"

He responded"

When you look at the private equity portfolio, profit growth for our companies was up six to 7% which is pretty much in line with what we're seeing in the industry. Valuations were hit by rising interest rates and there were one or two writedowns that took the numbers down from 6-7% to 2%.

In Real Estate, I told him I heard Charles say this morning that they sold some office towers in the US and he confirmed this:

Yes, we had some strategic dispositions in the US, absolutely. The key turnaround for this team in this portfolio, is going from a real estate operator to a real estate investor. And we were, we're rejigging the philosophy of this portfolio, rebuilding the team while the industry is going through some very, very challenging times. The numbers last year basically flattish on the year, better than what we did the year prior, at minus 11%, but it's still navigating within an industry that is see some significant headwinds.

I asked him what the split is at the Caisse between private and public markets and off the top of his head he said roughly 65/35 public vs private.

I then stated private credit and emerging market debt boosted the returns of the Credit portfolio and asked him to give me a bit more flavour there.

He shared this:

Just to be clear for us, Liquid markets includes public equities and all of fixed income, including private credit. So why is that? Our private loans mature within two to three years, so we get the liquidity coming back quite quickly. The emphasis here on liquid markets and then public. The credit portfolio had a stellar year in 2025, 9.6% absolute return outperformance relative to its benchmark and the way that portfolio has been structured from day one in 2017 was a hybrid between public credit and private credit. 

We do a lot of arbitrage to make sure that the premium that we're getting on the private side is worth, you know, giving away the liquidity. And we also have a the emerging market debt strategy in there that brings a very solid construction to the credit portfolio. It also brings volatility. I'm not going to lie to you, but when things work out like they did last year, we ticked all the boxes on the on the credit side. We didn't start doing emerging market debt last year. We've been doing it since 2017. What worked for us, or for emerging market debt in 2025 is a is basically a combination of two things, yields went down in markets in countries like Colombia, Brazil and Mexico, and their currencies appreciated. We had not seen that double that positive combo in recent years, so that was a significant driver of performance. On the private credit side, it was still a very, very, very good year, but the contribution from emerging market debt is really where the outperformance came from in 2025.

I asked him if he could give me the breakdown of the Credit portfolio which he did:

As of December 31 2025, 56% of the credit portfolio is allocated to privates, and remaining 44% is on the on the public side. Every year we're in our strategic plan. The goal, the objective, is to deploy $20 to $22 billion to new loans on the on the private side. In recent years, the amount of refinancing has been very elevated. So, for instance, last year we deployed $21 billion, we got $17 billion in refinancing, so the net increase was only $4 billion. But the teams can deploy, you know, they're very solid. The deployment is allocated to bank loans, direct lending, infrastructure debt, real estate debt, and also capital solutions team.

I told him I did see they are looking to double the private credit portfolio over the next five years and asked him if that's feasible.

He replied: 

It is feasible we can deploy. The teams are deploying north of $20 billion a year right now, getting north of $20 billion,we need refinancings to slow. And the thing we don't control is what happens on the public side. The key differentiator when you look at our credit portfolio relative to the Maple 8s, I think there are two differentiation. We do emerging market debt in there on the credit side, and we, we have the pool of public and private under the same house. There's an arbitrage. Every single deal that comes true has to be the public benchmark. I'm mentioning this because if credit spreads on the public side widen significantly, there will be a period where we're not going to allocate as aggressively on the credit side, but the strategic planning takes us above $120 billion.

He added: 

I think is very, very smart. And the portfolio was built that way in 2017 and we've seen instances where spreads widen significantly, and we can dial down, the tap, and then we dialed it back, back up. I think it's significant advantage. 

I moved on to public equities where I read they were underweight gold shares and some Quebec stocks  cost them some performance last year.

Vincent replied:

When you, when you look at the performance of our public equity portfolio, we outperform the MSCI World, and we outperformed the MSCI Emerging Markets. So our internal teams, our external teams, added value. It is a very tough environment to add value, and when you look at our positioning relative to the world, we're second quartile. And I'm very proud of that. The mandate where we had more difficulties last year was our Canadian mandate. We have some exposure to gold, but not to the same extent as the as the benchmark and a few Quebec stocks had more difficult years on a relative basis, that's the only mandate where we underperformed last year. So all things global, and I'm always very proud to mention this, but 100% of what we manage global and em internally, is managed here from our offices in Montreal, by our by our quant teams and fundamental teams, and they, they had a great year.

He told me their benchmark is MSCI ACWI for 80% and 20% is a Canada benchmark because their home bias and the large position they have in Canada.

We moved on to US stocks where I noted concentration risk was high again last year. I noted this year software stocks are getting slammed and chip stocks, especially memory, are surging again. 

Vincent noted the following:

There are a lot of things going on. So let me touch on a few topics, concentration and how it is making it challenging for investors. There's two concepts of concentration, the one that was very challenging form 2020 to 2024, was the concentration in the benchmark that was going up, so the FANGs become the Mag-7s, and all of a sudden, you know, the Mag-7s account for 33% or so of the S&P 500. 

The other aspect of concentration is concentration of gains. And even though the Mag-7s last year did not dominate. The concentration of gains was very, very high. So you take the time the 10 largest contributors to the S&P 500 last year, you get the 68% it was north of 50 in 2024 and 2023. In your average year, pre-Covid, you're running at 25 to 30% so that aspect, when you have a diversified portfolio, makes it very tough. 

How do we navigate this? In 2020 we had very little technology exposure. We had to do something. 2021, 2022 and 2023 we significantly increased our US / tech exposure, and we kind of capped it off in 2024 and in 2025 we reduced our US exposure as I mentioned this morning. 

We're trying to play that. We're trying, but we're much more selective in how we we get exposure to the AI thematic, the technology thematic. We find better opportunities outside the US. We don't want to play the hyperscalers just being naive and chasing the hyperscalers. So last year, what helped us is we reallocated some US exposure into European financials, Korean tech, Taiwan tech and Japanese industrials and financials. 

On AI. AI has been dominating everything since 2022 but the way AI dominates has changed significantly since last fall. And this year, it's quite amazing to see what's going on, because the big spenders, hyperscaler spenders, are not getting the retribution anymore. There's the market's much more selective and doesn't give the benefit of the doubt to everybody that's spending like like crazy, and then you have a whole SWAT of industries that are getting penalized because of the fear of of disruption.

Our thesis is that we think the markets can still move a bit higher but our thesis is that there's, there will be broadening of leadership. And there are many, many sector that have been left for dead in the last few years that are coming back alive this year. So the rotation is, is very visible year to date, not only geographically. Last year was more geography, but this year is more on the sectoral basis, energy, materials, transports, consumer staples, REITs. These are all names that have not been talked about leadership in in recent years. So very selective on how we play AI geographically, more more opportunistic on the EAFE space, and broadening participation is how we try to align our portfolios. 

I noted the S&P Equal Weight Index (RSP) is outperforming the S&P 500 (SPY) this year and this is a good environment for active managers.

Vincent shared this:

The environment of a concentration disadvantage that was prevailing in recent years, having the US equal weight outperforming the market cap weighting is going to make life easier for portfolios that are more diversified. And look at the spread right now on my screen, RSP plus six. Spider up one. Yes, it is an environment where actually being be more prudent. And, you know, diversifying within sectors and geography makes it, makes it easier to beat the benchmarks.

I told him that we are only two months into the year and things can change on a dime so it's too early to predict the end of tech this year.

He added:

We must not prematurely call it over. It kind of started in Q4 and it accelerated in January and February. And from our standpoint, the reason why this rotation has been ongoing is twofold. First, there's some signs of life, nascent signs of life in US and global manufacturing, the PMIs and the the ISMs have been in recession for over three years. The New Order components are now back above 50. If we get an ISM increasing type of market this year, then more cyclical, the real economy sectors should perform better. And the other reason why, we had to give credence and weight to this rotation out of tech. It's getting more complicated within the tech sector as well. Software is getting killed. Memory is skyrocketing every day, the hyperscalers, some are performing, others not. So it would be, would it be surprising to see tech as a whole come back with the same extent of domination, but it could happen. 

But he added:

Software is certainly one area where you have to ask yourself, is the selloff overdone? Because there's no doubt companies in every area will be changed by what AI brings to the table. But the speed at which we've seen market cap evaporate in many, many industries, it begs the question, how much is too much? Right? 

Lastly, I asked him what worries him in terms of the macro environment?

Vincent shared his concerns:

Interest rates is where I keep my focus. I'm worried that eventually we can't have our cake and eat it too like we have. We can't have an economy that gets somewhat better and rates moving moving lower. 2025 was all about tariff shock. 2025 was all about central banks cutting rates aggressively. 2026 could see some slight improvements in global growth, exports, trade, manufacturing. If that happens, then we start pricing the next move from central banks in 27/28. 

I am more focused on what changes the trend in interest rates. You know, we've been living with so many fears and headlines over the recent years. You know, tariffs, wars in the Middle East. I'm paying very close attention to oil, because oil doesn't get enough credit for how inflation was tame last year. Oil is up 15% one five. Year to date, it's only late February, that that could throw a wrench into the pretty inflation picture that we have. 

I asked him what he thinks about AI unleashing a massive deflationary wave and he said this:

Well, it's hard to argue against that because we don't have any concrete evidence yet. AI will certainly have the same positive impact on productivity as what we saw with with technology, the internet, in the 2000s and 2010. Then you have these, you know, population, immigration, you know constraints. Look at Japan, look at the US, look at Canada. I wouldn't say it's smooth sailing for inflation just because AI is, is upon us. 

Great food for thought, so pay attention to oil and rates as they might be moving up over the next two years.

I wrapped it up there and thanked Vincent and Conrad. 

Conrad subsequently responded to an email question of mine on currency hedging and how much the slide in the US dollar cost them last year:

Regarding currency hedging, we partially hedged the USD exposure. Through this partial hedge, we protected $3,6 billion. The USD had a negative impact of around $6 billion (it would have been close to $10 without hedging). Please see the find the relevant section from our press release (see above).

Alright, that's a wrap.

Below,The Caisse posted an annual return of 9.3% for 2025, a result that, however, fell short of its benchmark portfolio's return of 10.9%, due to "geopolitical tensions" and "persistent tariff uncertainty."

This difference compared to its benchmark portfolio means that the Caisse's return in 2025 was lower than that of the financial indices to which it compares its performance.

Nevertheless, Quebecers' savings are doing well, assures the Caisse, which points out that its five-year annualized return of 6.5% surpasses its benchmark portfolio's 6.2%. Over a 10-year period, the Caisse posted an annualized return of 7.2%, while its benchmark portfolio's return was 6.9%.

RDI's Olivier Bourque explains the details (in French).

I like this clip because a minute in, Charles Emond is quoted saying they're highly diversified, looking to hit singles and doubles, not home runs.  

Paula Sambo of Bloomberg reports Canada Pension Plan board names veteran David Colla as credit chief:

Canada Pension Plan Investment Board, the country’s largest such money pool, named insider David Colla as global head of credit investments, elevating a private-debt specialist after the strategy posted returns in the teens last fiscal year.

Colla, who joined CPPIB in 2010 and most recently led its capital solutions group, will assume the role April 1 and join the senior management team, the pension manager said Tuesday. He succeeds Andrew Edgell, who led the credit platform for five years and nearly doubled its size. Edgell will move to a senior adviser position.

Chief executive John Graham said Colla’s experience across leveraged finance and structured credit will help the unit for its “next phase,” as private debt takes on a larger role within the portfolio.

CPPIB returned 14.4 per cent in the credit asset class in the fiscal year ended March 31, 2025.

Colla previously oversaw growth in leveraged finance and structured credit and has been closely involved in CPPIB’s relationship with Antares Capital, where he serves on the board. The Chicago-based firm, which was acquired by the pension fund in 2015, is an alternative credit manager that had more than US$85 billion of assets as of last June.

Previously, Colla worked at Oaktree Capital and JPMorgan Chase & Co., according to his LinkedIn page.

Private credit has drawn rising allocations from global pensions as banks pull back from riskier lending. Higher interest rates have also boosted yields on senior secured loans, making the asset class attractive for long-term investors seeking income and downside protection.

CPPIB has maintained an active deployment pace. In the quarter ended Dec. 31, it committed or invested more than US$800 million across credit transactions, including loans to automotive software company OEConnection and real estate restoration firm Servpro. 

Earlier today, CPP Investments announced the appointment of David Colla as Senior Managing Director & Global Head of Credit Investments:

TORONTO, ON (February 24, 2026) – John Graham, President & CEO, Canada Pension Plan Investment Board (CPP Investments) announced today the appointment of David Colla as Senior Managing Director & Global Head of Credit Investments, effective April 1, 2026. He will join the organization’s Senior Management Team.

Colla succeeds Andrew Edgell, who has decided to step away from his role as Senior Managing Director & Global Head of Credit Investments. After 18 years in a range of senior leadership positions at CPP Investments, Edgell will continue with the organization as a Senior Advisor.

“David is an experienced and highly regarded investor with deep expertise across the credit spectrum,” said John Graham. “Over the past 16 years, he has been instrumental in building and scaling our credit platform, including the growth of our leveraged finance and structured credit capabilities. His strong investment judgment, commitment to partnership and focus on talent development position him well to lead Credit Investments into its next phase.”

Colla joined CPP Investments in 2010 and most recently led the Capital Solutions Group. During his tenure, he has overseen the expansion of the Americas Leveraged Finance and Structured Credit businesses and played a key leadership role in the acquisition and ongoing management of CPP Investments’ investment in Antares Capital. He serves on the boards of Antares Capital and Antares Holdings.

“Andrew has made countless contributions to CPP Investments throughout his career,” added Graham. “Over the past five years, as Global Head of Credit Investments, he has led the continued growth and performance of the credit business, nearly doubling the size of the portfolio. We are grateful for his leadership through the years and are pleased he will continue to contribute to the organization in his new role.”

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2025, the Fund totalled C$780.7 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

Alright, big news at CPP Investments so let me begin by congratulating David Colla, the new Global Head of Credit Investments, effective April 1st.

Was I surprised David was appointed to head up Credit Investments? No, he's a top credit investor with years of experience, I would have been shocked if he didn't get that position.

I think what surprised me was why did Andrew Edgell who led the credit platform for five years nearly doubling its size decided to step down and be a senior advisor to the CEO?

Andrew is a really sharp and nice guy, I have spoken to him a couple of times and like him a lot. 

In fact, I think highly of him and David Colla (they're both first-class on every level). 

So it surprised me that he's decided to step down.

There has been a lot of negative press lately in the private credit industry and some think this may be performance related but Credit Investments at CPP Investments are doing very well, they're the top institutional investor in the world in this space.

I reached out to John Graham for a comment and he graciously replied:

"Certainly a lot of noise about private credit right now, but this leadership transition is totally unrelated. Andrew came to me a year ago and shared that he wanted to move out of the day to day of running a large department, give David Colla a well-deserved opportunity and focus on some other high priority initiatives. Andrew is still with CPP Investments, will continue to serve on investment committees and will lead some CEO special initiatives."

Now, I'm not going to lie, when I read that reply, the first thing that went through my head is they're grooming Andrew Edgell to become the next CEO.

Why? When a senior managing director steps down from a critical portfolio to work on "CEO special initiatives", it typically means he or she is getting the lay of the land and is being groomed for the top job.

I might be off, way off, but I've spoken to Andrew and he can easily be the next CEO of CPP Investments (don't forget, John Graham was his predecessor before assuming the top job exactly five years ago). 

Having said this, I bounced this idea off a senior executive at CPP Investments who shared this with me: 

"I agree that both (Andrew and David) are stars in their own right. Still, the depth of talent at CPP Investments runs deep and wide, and with a Board of Directors taking succession planning very seriously at various key levels and roles, I believe with such a deep pipeline of talent it might be a little too speculative..."

No doubt about it, the depth of talent at CPP Investments runs deep and wide so maybe it's premature to assume anything at this point until an official announcement is made.

Anyway, those are my thoughts on this nomination. I want to reiterate, David Colla is the best person to lead Credit Investments at this time and that's why he was chosen to replace Andrew Edgell who is an equally outstanding leader and investor in his own right.  

I wish then both well.

Below, private credit, a form of lending by non-bank financial institutions to businesses outside of public markets, was once a niche corner of Wall Street. Now, private credit is going mainstream as it seeks funding from retail investors. CNBC’s Hugh Son breaks down the rise of private credit, why retail investors are looking into private credit and the risks and upsides of investing in the space (a month ago).

Also, Dan Nathan and Guy Adami are joined by Jen Saarbach and Kristen Kelly of The Wall Street Skinny to discuss two major developing market stories ahead of meeting in Miami for the iConnections Global Alts conference. 

The first topic is stress in private credit, centered on Blue Owl’s retail-focused semi-liquid vehicle (Blue Owl Capital Corp II) facing heavy redemptions and gating, highlighting the liquidity mismatch between retail redemption needs and long-dated loan assets. They contrast the gated evergreen structure with Blue Owl’s publicly traded BDC that was trading roughly 20% below NAV, discuss Blue Owl’s reported loan sales near NAV, and explore why the issue is pressuring related stocks like Blue Owl and Blackstone despite an S&P 500 that appears indifferent. 

The group connects the private credit conversation to how AI/data center buildouts are financed, including references to Meta-related structures and concerns about CoreWeave’s ability to raise capital for data center obligations, and notes that credit markets often reprice quickly only after complacency breaks. 

The second topic is prediction markets, focusing on Kalshi and its partnership with Tradeweb to publish analytics and potentially enable institutional trading of binary outcomes on events like Fed decisions and macro data, raising questions about democratized access, liquidity constraints, regulatory gaps, spoofing, and the role of insider information, along with implications for politics and whether more information is always better.

James Bradshaw of the Globe and Mail reports OMERS pension fund reports 6% gain as weak U.S. dollar dents investment returns:

Ontario Municipal Employees Retirement System (OMERS) gained 6 per cent on its investments in 2025, lagging its benchmark but earning positive returns across most its portfolio in what chief executive Blake Hutcheson called “one of the most difficult years in my career to invest.”

The pension fund manager’s annual performance was hampered by a weakening U.S. dollar, which dragged returns down by 1.3 percentage points, and poor performance from private equity investments, which lost 2.5 per cent.

All other asset classes had positive returns for the year, led by a stock portfolio that gained 12.3 per cent, as public markets surged largely on optimism about technology and artificial intelligence.

That market optimism was overshadowed by political turmoil and wars around the world, as well as the disorienting effect that shifting tariff policy has had on investors. The uncertainty stemming from U.S. President Donald Trump’s protectionist push affected currencies, interest rates and asset prices, “and frankly, it impacted our day-to-day decision making,” Mr. Hutcheson said in an interview.

“All I want to know is that I’ve got an environment where someone doesn’t wake up and break your jaw,” he added. “Why I think it’s difficult now is it’s just so unpredictable, the goalposts keep getting moved.”

OMERS fell short of its internal benchmark for returns, which was 7.5 per cent, though currency losses accounted for much of that gap and aren’t accounted for in the target. OMERS was able to offset a further 70 basis points of potential currency losses by hedging against fluctuations in the market.

“Given all that ... it’s an acceptable outcome,” Mr. Hutcheson said.

OMERS invests on behalf of nearly 665,000 Ontario public service workers at school boards, transit systems, electrical utilities and emergency services, among other employers. Its assets increased to $145.2-billion at the end of 2025, up from $138.2-billion a year earlier.

The plan has earned an average annual return of 7.7 per cent over the past five years, and 7.1 per cent over 10 years.

Even now, the United States is “not a market you would ignore,” accounting for 26 per cent of global economic output, and it will remain a big part of OMERS’s strategy, Mr. Hutcheson said. “Having said that, it’s a cautionary time.”

OMERS is looking at whether it can “pivot to Canada” for some of its deals at a pivotal moment for the country’s economy – as long as any potential transactions meet the bar for risk and return that guides the fund’s mandate.

“We want to do more in Canada,” where OMERS has a home-field advantage and a significant portfolio of real estate and other investments, he said. But infrastructure investment has been harder for the pension plans, with too few opportunities that they deem to be attractive.

“Actual opportunities have to be put on the table,” he said, and OMERS is “encouraged that those are on the horizon.”

OMERS’s global infrastructure portfolio gained 6 per cent last year.

In private equity, buyers and sellers are starting to be more realistic about what companies are worth, chief financial officer Jonathan Simmons said. But for deals to pick up, company profits need to start rising in a meaningful way, and interest rates need to stay low.

For private equity investors, “it was a very difficult year, let’s not kid ourselves on that front,” Mr. Hutcheson said, and a full recovery for the sector could take years. “This doesn’t turn on a dime.”

OMERS had stronger performance from its private credit book, which earned 8.3 per cent in 2025. More recently, stock prices for large private credit lenders have wobbled as U.S.-based Blue Owl Capital Inc. halted redemptions for one of its funds and sold a US$1.4-billion portfolio of loans to several pension funds, with OMERS reportedly one of them.

The fund declined to comment on Blue Owl’s sale, but said it has stuck to a strategy “to hold the pen on credit underwriting and not to give it away, and that is serving us well,” Mr. Simmons said.

OMERS improved from being 98-per-cent funded in 2024, based on projected payouts to pensioners, to 99 per cent at the end of last year. The plan expects to be fully funded soon, and to manage $200-billion of assets by 2030. 

Layan Odey of Bloomberg also reports OMERS earns 6% as stock gains offset losses from private equity, U.S. dollar:

Ontario Municipal Employees Retirement System returned six per cent last year after gains from stock holdings and private credit more than offset private equity losses and a weak dollar.

That brings its net assets to $145.2 billion last year, up from $138.2 billion in 2024, the pension said in a statement Monday.

“Volatile currency markets create challenges for many investors who invest abroad,” chief executive Blake Hutcheson said in the statement, adding that decisions to hedge currencies helped “limit the foreign exchange impact on our results to negative 1.3 per cent, driven mainly by the strong decline in the value of the U.S. dollar.”

Public equity holdings gained 12.3 per cent last year, while private credit and infrastructure delivered 8.3 per cent and six per cent returns, respectively. Investments in private equity lost 2.5 per cent, compared with a 9.5 per cent gain in 2024.

The pension plan has revamped its private equity group over the past two years, including hiring a new global head, halting direct buyouts in Europe and cutting a team focused on the asset class in Asia.

Earlier this month the private equity arm agreed to sell specialty care management company Paradigm to Patient Square Capital, and in December CBI Health, one of OMERS’ longstanding portfolio companies, agreed to sell its home-care business to Extendicare Inc. in December.

Omers said that it is “well-positioned” to invest in Canada and that it’s seeking “near-term opportunities in Canada that will support both our objectives and the country’s growth.” 

The Canadian Press also reports pension fund manager OMERS earned six per cent return for 2025:

TORONTO - Pension fund manager OMERS says it earned a six per cent return for 2025, helped by the strength of its public equities and private credit investments.

The Ontario fund manager says its net assets grew to $145.2 billion at Dec. 31, up from $138.2 billion a year earlier.

OMERS chief financial and strategy officer Jonathan Simmons says the portfolio generated steady performance against a backdrop of significant political and economic uncertainty, particularly around trade in 2025.

Simmons noted that six out of the fund’s seven investment asset classes delivered positive returns, led by a third year of double-digit returns from public equities and another strong year for private credit investments.

The pension plan’s smoothed funded status improved to 99 per cent, up from 98 per cent in 2024.

OMERS manages the defined-benefit pension fund for employees of municipalities, school boards, local boards, transit systems, electrical utilities, emergency services and children’s aid societies across Ontario. 

Earlier today, OMERS released its 2025 results stating it earned an annual investment return of 6%, or $8.2 billion, net of expenses:

OMERS, the defined benefit pension plan for Ontario’s broader municipal sector employees, earned a 2025 investment return of 6%, or $8.2 billion, net of expenses. Net assets grew from $138.2 billion at December 31, 2024 to $145.2 billion at December 31, 2025. The Plan’s smoothed funded status improved to 99%, from 98% in 2024, using a real discount rate of 3.70%. Over the past 10 years, OMERS has averaged an annual investment return of 7.1%, net of expenses, adding $73.9 billion to the Plan, and contributing significantly to improving the Plan’s funded status.

Steady progress in 2025

“OMERS performance in 2025 demonstrates the resilience of our plan amidst a turbulent market. Since becoming CEO, I have been proud to lead a team committed to delivering enduring value for our 665,000 members by maintaining a disciplined investment approach. Over the past five years, we have generated an average annual net return of 7.7%,” said Blake Hutcheson, OMERS President and CEO. “Our 2030 Strategy positions the Plan well for further success in the years ahead. We expect to have $200 billion in net assets by 2030, and will be more than 100% funded.”

OMERS is diversified by asset class and geography, and this broad asset base helps to insulate the Plan through the challenges that each market cycle brings. In any given year some asset classes will perform more strongly than others, depending on market and economic conditions.

“Our portfolio served us well in 2025 generating steady performance against the backdrop of significant political and economic uncertainty, particularly around trade. Despite this, six out of our seven investment asset classes delivered positive returns, led by a third year of double-digit returns from public equities and supported by another strong year for private credit investments,” said Jonathan Simmons, OMERS Chief Financial and Strategy Officer. “We continue to navigate a persistently challenging private equity market.”

“We are pleased to see a recovery in our real estate portfolio, with good performance in office and retail, as the industry emerges from several difficult years,” remarked Hutcheson. “Volatile currency markets create challenges for many investors who invest abroad. We are certainly not alone in facing this issue, particularly as it relates to the U.S. dollar. Active decisions to hedge currencies protected 70 basis points of our return for the year. This helped to limit the foreign exchange impact on our results to negative 1.3% driven mainly by the strong decline in the value of the U.S. dollar."

Ready to Invest More in Canada

OMERS is well-positioned to invest across geographies of focus, including in Canada where we expect new opportunities to emerge.

“This is a pivotal time in Canada. As a nation, we have a significant opportunity to build a stronger and more resilient future, and OMERS wants to be part of that. We are a proudly Canadian pension plan with a deep history of investing in our home market. We like the advantage that our relationships and on-the-ground expertise offer,” said Mr. Hutcheson. “Any transactions we might undertake will have to meet the high bar we set for managing the Plan on behalf of our members, but we aspire for near-term opportunities in Canada that will support both our objectives and the country’s growth.”

Building for the Future

Funded status is a key measure of the Plan’s long-term financial health.

“The improvement in OMERS smoothed funded status to 99% was attained while at the same time strengthening provisions to pay pensions by an additional $2.2 billion to reflect longer life expectancies,” said Simmons. “Canadians—including our members—are living longer and the Plan is ready to meet their retirement needs in the decades ahead.”

Our work continues to prioritize initiatives that safeguard future returns. OMERS is reporting a 65% reduction in its portfolio carbon emissions intensity relative to the 2019 baseline, and increased its green investments (as defined in the OMERS Climate Action Plan) to $26 billion.

Making an Impact

A recent study by the Canadian Centre for Economic Analysis found that OMERS 2025 activities in Ontario generated $15.3 billion in provincial GDP, supported more than 135,000 jobs, and positively impacted 1 in 11 households. Across our investments, pensions, and corporate teams, OMERS employees continue to look for ways to innovate and deliver on our pension promise with excellence.

“Our members, who work to keep our communities healthy and safe, face a world that feels more complex every year. Our job is to provide a stable source of retirement income that helps bring them peace of mind,” said Hutcheson. “We have built a Plan that sees through cycles, periods of uncertainty and decades of change. I am proud of the way our teams have invested with conviction, provided excellent service to our members, and provided promised pensions, on time and as planned, for almost 65 years.”

OMERS is highly rated across independent credit rating agencies, including ‘AAA’ ratings from S&P, Fitch, and DBRS.

About OMERS 

OMERS is a jointly sponsored, defined benefit pension plan, with more than 1,000 participating employers ranging from large cities to local agencies, and 665,000 active, deferred and retired members. Our members include union and non-union employees of municipalities, school boards, local boards, transit systems, electrical utilities, emergency services and children’s aid societies across Ontario. OMERS teams work in Toronto, London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities across North America and Europe – serving members and employers, and originating and managing a diversified portfolio of high-quality investments in government bonds, public and private credit, public and private equities, infrastructure and real estate.

Net Investment Returns for the years ended December 31

2025

2024

Government Bonds

2.9%

1.0%

Public Credit

3.9%

6.0%

Private Credit

8.3%

12.6%

Public Equities

12.3%

18.8%

Private Equities

-2.5%

9.5%

Infrastructure

6.0%

8.8%

Real Estate

5.1%

-4.9%

Total Net Return

6.0%

8.3%

Asset Mix

As at December 31, 2025

Assets by Geography

As at December 31, 2025

Investment Performance Highlights

Over the year ended December 31, 2025:

• Currency detracted 1.3% from our returns, particularly impacting public and private equity. The U.S. dollar depreciated against all other G7 countries in 2025, marking its worst annual performance in years, weakening almost 5% against the Canadian dollar over the year. Our active decisions to hedge our currency exposure protected 70 basis points of returns. This currency management strategy, combined with our diversification in the euro and British pound sterling, mitigated some of the negative U.S. dollar impact on the portfolio.

• Our ongoing strategy to allocate funds to fixed income contributed to our overall returns. Government bonds, public and private credit each delivered positive performance primarily due to interest income and a decline in bond yields.

• Public equities delivered double-digit performance from core large-cap holdings in information technology, communication services and financial sectors, with most other sectors contributing positively.

• Private equities continued to face a challenging market. Deal market activity was low and valuations continue to be impacted by slow earnings growth and headwinds within certain industry sectors.

• Infrastructure continues to deliver steady results. While the majority of our portfolio performed well, headwinds on select assets softened the asset class return.

• Real estate delivered a positive return after a series of challenging years for the industry. Results were supported by strong operating fundamentals, particularly in office and retail.
  

2025 Highlights

By the numbers

• 2025 investment return of 6%, or $8.2 billion, net of expenses

• $145.2 billion in net assets

• 10-year average annual net return of 7.1%

• 665,000 OMERS members

• 99% smoothed funded ratio

• 3.70% real discount rate

• $6.8 billion total pension benefits paid

• We are reporting a 65% reduction in the portfolio carbon emissions intensity, relative to 2019

• $26 billion in green investments (as defined in the OMERS Climate Action Plan)

• 97% OMERS member service satisfaction

• 99% Employer satisfaction

• 93% of employees are proud to work for OMERS and Oxford (+5 points above best-in-class)
  

Transactions in 2025

OMERS remains focused on deploying capital in line with our target asset mix. We are a disciplined investor in high-quality assets that meet the Plan’s risk and return requirements. Highlights of transactions made in 2025:

• Announced the acquisition of a Manchester industrial estate from Network Space Developments. This transaction was the first for the newly formed Oxford Properties and AustralianSuper joint venture.

• Completed offerings of EUR 1 billion, 10-year term note at a yield of 3.253% and USD 1 billion, 5-year term note at a yield of 4.434%.

• Participated in the Series B financing round for Float Financial, a finance platform for Canadian businesses.

• Acquired full ownership of a high-quality, $1.5 billion Western Canada office portfolio.

• Announced a transformative co-investment of over $200 million to retrofit the existing office buildings at Canada Square in midtown Toronto.

• Broke ground on the first major purpose-built housing project in Scarborough in over a generation. The development will consist of three residential towers of 1300 units with the aim of delivering critically needed housing, including a 21% allocation for affordable housing.

• Completed Canada’s largest co-op housing renewal project in Vancouver.

• Participated in a US$275-million private investment supporting Xanadu Quantum Technologies, a Toronto-based leader in photonic quantum computing.

• Completed the inaugural senior unsecured bond issuance for BPC Generation Infrastructure Trust (BGIT), the holding company for OMERS investment in Bruce Power. The offering totaled C$1.5 billion.

• Secured €770 million in new debt facilities at Borealis Spain Parent B.V., the holding company for OMERS ~25% stake in Exolum.

We rotate capital out of assets with the same level of discipline with which we invest. This activity generates capital, which we deploy into future investment opportunities that align to our strategy. Highlights of realizations announced or completed in 2025:

• Completed the sale of a 9.995 per cent stake in Australian electricity network firm Transgrid to the Future Fund Board of Guardians.

• Sold our stake in London City Airport.

• Announced the sale of CBI Health LP’s home care business to Paramed Inc – the closing of the transaction is expected to be completed in Q1 2026.

I had a chance to discuss OMERS' 2025 results with CEO Blake Hutcheson and CFO & CSO Jonathan Simmons earlier today so let me get right into it.

I want to begin by thanking both of them for taking the time to talk to me and also thank Don Peat for setting up the Teams meeting. 

Blake began by giving his high level overview:

The punchline is 6%, we made $8.2 billion. We have about 3000 people, by the way, about half and half Oxford and OMERS. And I often remind them that when you make $8.2B and in a good year, it's north of 10 with a small handful of people, they're all making a difference. And we have a great team in the country, and I'm proud of them. 

Last year, quite honestly, was one of the most difficult investment environments that I've ever experienced and the punchline for me is, as a businessperson and an investor, I don't ask for a head start. I didn't ask for a leg up. I don't ask for anybody to give me an advantage. I just need to know the rules of the game. And if I know the rules of the game, for us at OMERS and Oxford, I like our odds to compete with the best of the best, and in environment where there's tariffs on, off, geopolitical, shifts, not only in the US and Canada, but around the world. Is Starmer going to make it in the UK? Who's the next? You know, President of France? Like all these markets, the geopolitical turmoil, the tariff turmoil, and the impact of, you know, policy decision making changing on a dime has made it extraordinarily difficult, and it's hitting our currencies, it's hitting our equities, but most importantly, or notably, it hits our day to day decision making. Where do you allocate capital? Where do you hold back? Often, with partners, they may have a different view because, because they're getting confounded by the change the same way we do, some of our banks and counterparties may have a different view. 

And I've just never seen an environment where you didn't have a predictable future. And as I often say, just don't break my jaw.And this has been a jaw-breaking environment for I think all of us as significant investors in a Canadian and global context, and given that background, I think our results demonstrate our resilience and our power of diversity. And so I'm not unhappy with the circumstances. 

Given that context as a long term player -- and you always hear us focus on the long term --  I genuinely, try to ignore one year in a row. I pay a lot of attention to 3, 5 and 10 years in a row, and our 5-year average has been 7.7%t. I watched that one carefully, because I became CEO in 2020. Our 10-year return is 7.1%  and (over this period) we returned over $74 billion to the plan to go straight to our funded status. Our 2-year average is 7.2% and I look at our funded status, we've come a long way from being low 80s% 20 years ago to 99% this year, and counting. We even improved our funded status this year, which is positive, after making some significant changes to our liabilities, about a $2.2 billion more conservative liability adjustment. And so I'm hopeful that in a year or so, we will properly celebrate 100% funded status. 

And that's how we're measured. That's how we're judged. We look at our liabilities, we look at our direction of travel. And when we get 5% real, which translates into the seven plus that we've had for 5 and 10 years, when I looked at 2030 we'll have a significant push in over 100% funded status, and will have left OMERS in a much, much healthier state than how we found it not so long ago.

Six out of our seven asset classes were in the black. Our (public) equities team performed well, our credit team performed well, our Infra team performed well, our real estate business, and you've asked me this every year, has turned the corner. 

Our big difficulty, as you can see last year, was PE, and that is a symptom of many of the PE companies that you cover in a global context, the bid ask spreads were wide, the cost of money is still quite high. It's been an unpredictable environment for them to invest in. And so no excuses. It's the work in progress for us, it is the one that was most painful for us to endure in 2025.

He went on to add:

The other notable for us is our plan benchmark was 7.5% this year. When we set those benchmarks, they are currency agnostic. If the US and Canadian currency had stayed flat, we would have been closer to 8%. 

We ended protecting about 70 basis points through hedging strategies, but it still cost us 130 basis points, because we certainly aren't going back to a period where we edge 100%. So, when I look at our operating plan, did people do what they were supposed to do? They did. Did currency have an impact that has prevented us from meeting that plan? 100%. And those things come and go from one year to the next. I'm not saying we can take it one year and blame it the next. Nonetheless, it was particularly difficult year to understand the direction of travel, given what trends translated from the US and the US policies.

A couple more ideas. We remain 55% committed to the United States. They're 26% of the global GDP -- their fiscal and monetary stimulus at this point in history is going to ensure that, at least for the foreseeable future, their markets are strong for most of the assets we invest in. Over time that exceptionalism may wane for all the reasons that we know, but for the short term, we remain committed to lots of assets, lots of counterparties in that market, and we've got deep friendships there. Notwithstanding, when people read the headlines, the Americans are great friends, and are great partners. 

But we want to do more in Canada. And we have, as you know, a significant portfolio here, sometimes with partners. Banff Springs, Chateau Lake Louise, Jasper Park Lodge, Chateau Whistler, Yorkdale Shopping Centre, Square One, Scarborough Town Centre, 20% of the office market A class product in Vancouver, Calgary, Toronto. Bruce Power, the largest nuclear plant on the planet, 31% of the power supply for Ontario. Teranet, the Ontario land registry system here, a little piece of the MLSE, as you know, some really good PE businesses, some really good ventures investments. 

So we are, we're really committed to Canada, but we want to do more. And we're, we're encouraged when we look particularly at our infrastructure and and real estate, books and pipelines, that there's a lot of the offer there that we hope to get, get over the top, because we like the rule of law. We believe in this country.  

We believe in the future this country. We like a lot of the signs we're seeing as as you know, with this new government and the direction of travel with proper economic seeds getting planted for the first time in a long time. So I hope you'll read more in the future Leo that we're doing more in Canada. We're certainly seeing the prospects, and we're certainly committed to it. 

When Blake wrapped up his opening, I noted that most of the Maple 8 funds lost money on currency last year because they don't fully hedge or partially hedge and that's no big deal over the long run but sometimes in a pivotal year like 2025, it can cost you serious basis points.

Still, I'm a firm believer in US markets and the greenback over the long run so I don't put too much weight on a year like 2025 where the greenback slid for all sorts of reasons. 

I told Blake and Jonathan the only concern I had with OMERS results last year was what happened in private equity, was the -2.5% loss concentrated in one or two assets? What's Alexander Fraser (global head of PE) doing right now? Because everyone I'm seeing is shying away from purely direct investments where they own a controlling stake to invest and co-invest with top funds  because competition is ferocious and they need to maintain allocation and reduce fee drag.

Blake responded:

It's hard to turn a freighter on a dime. And our process in looking at our PE business started really a year and a half ago, where we said, let's look at the business plan, what are we great at, how do we get in the way of a trend given limited resources? And we still feel we can stand up and compete heavily in Canada, the United States, in the spaces that we've defined as areas of expertise in PE and we were very clear that in Europe, we didn't feel that we could compete at the same level. 

We have a direction of travel to dispose of those assets, not in any fire sale way -- as you know, our balance sheet is strong enough we never have to --  but over time, as it makes sense, and the money we liberate there goes back into funds, or fund like structures or co-invest structures. And so that takes time, and in the US, what we just found was that,  from a valuation perspective, there are very few data points, because the bid ask spreads so far that the market is softened. The things that did get traded, traded at lower multiples, and with the uncertainty that's being created from policy and tariff threats that we've all seen, it had an impact on values.

And to be perfectly honest, we have some really great assets, we have some good assets and we have some assets facing challenges in the 25 that we hold. And so, like any time in my life, the great assets hold their value, and the not so good ones, ultimately, the market catches up to them. So, some of that's gone through the river with us. 

So with Alexander, he's a bright guy. He's leading, getting his arms around it. We did take some writedowns. It wasn't one or two big ones. It was more incremental adjustments to try to get our portfolio to meet more with the market comps and environment that we're experiencing, and this is going to be a two or three year build for us. It's not going to happen overnight. We will do more co-investments, we will do more funds, but we also have staged a team that in the verticals we're good at, we think we can compete very directly and competitively in North America. 

I asked Blake if they are accepting third-party assets in that asset class and he told me they only accept in infrastructure and real estate (where they have a lot... "Oxford has $40 billion in third party capital and Infra has some co-investment relationships").

I moved on to real estate noting Eric Plesman has rejoined Oxford from HOOPP to be the CEO and President. I also noted even though commercial real estate delinquencies have risen in the US, REITs are on fire this year, Blackstone's Jon Gray is positive on the asset class, and it looks like things are looking up again.

Blake replied:

You know the story. I mean, Oxford averaged 12.5% returns for over 10 years from 2010, to 2020, we built a business there. There was a $17 billion domestic company, $7 billion of equity, $7 billion of debt, three of third party, and turned it into a now $85 billion business. 

It was primarily Canada. Now it's about 30% Canada, and it was primarily office and retail, and now it's got great diversification between retail and office and industrial and multifamily and hotels and credits. 

So I've always believed that Oxford is one of the greater, one of the top five real estate businesses in the world, frankly. And Covid hit, and we stepped in some bear traps during that period as a platform. 

The bear traps are behind us. The team's been changed. The go forward economics are favourable. Cap rates have stabilized, are coming down. The cost of money stabilized, coming down. And like any of these markets, I alluded to it a bit with private equity. I look at it as a K, and the top end of that K for great assets, their trajectory is so favourable, and the bottom end of that K for lower quality assets, it's not so favourable. It's going the wrong way. 

And the vast, vast majority of our book and Oxford is favourable. I think it has turned the corner. Real estate has become an 8% or 9% business, not a 12.5% business, for the foreseeable future. And this being in the black is an indication of what I've seen coming with the changes that Dan Fournier made over the last three years, where we had him there, we can see it turning the corner. 

We've taken our writedowns. We've got a great strategy and a great team in place. So it took us a few years to turn it and won't happen overnight, Leo, but this business is is on its way back, and it's going to remain a significant contributor to OMERS for the future. 

In Infrastructure, I noted what happened at Thames Water and said "I hate writing about Thames Water" but had to cover it. I asked them if they took the writedown there back in 2024 and how that portfolio is doing.

 Blake responded:

OMERS Infrastructure is $30 billion, 22% of our assets. Like Oxford, it's an extraordinary business that we've built up for over 30 years, close to 40 years. And so I would put our team against any in the world to compete. When you have 30 children, and I tell this story often, Leo, Jonathan's laughing. I grew up on a street in my hometown where a family is...

LOL! I stopped him right there as I've heard that story at least five times (when you have a family of 10, one or two kids are superstars, 6 are average, 2 or 3 a problem makers).

Blake continued:

You are always going to have some of those good ones and not so good ones. So Thames Water was a good example. We're working through a couple others right now that that we are deeply focused on them and seeing them through a difficult period. When you have a couple of those, if, 10% of your book causing a grief, that's probably to be expected.

Jonathan interjected: "And we have some great ones that no one wants to write stories about."

Blake added: "And many spectacular ones that there's no point in bragging about because no one wants to write about it." 

Blake went on:

The delicacy with infrastructure is it also relies on consistent counterparties. both contracts and people's word, you know, and Thames Water, to be perfectly honest, was a regulator who didn't stand up to its obligations and that's very difficult in a western democratic society. When that happens to you, and concessions in general require people's word meaning something. So it's a more delicate world today than what we grew up with. Having said that our word means something, our handshake means something, our portfolio has been built on deep relationships. We continue to believe in infrastructure as a business and we want to do more in this country.

On that point, I shared with Blake that I'm generally supportive of Mark Carney's government but I'm growing increasingly impatient on big projects and wondering when are they going to get the ball rolling in a meaningful way to privatize airports and other infrastructure assets. 

I asked Blake if there's anything he can share on the record and he replied:

I can say publicly, Leo that for the first time in many years, we are seeing genuine interest from both provincial and federal governments to finally move some things forward and I'm optimistic that that will take place. To your point, the proof will be in the pudding. And to your point, sooner is better than later, but I do remain optimistic and we're all having those conversations at a level that we haven't experienced in a long time. All right, so stay tuned. Okay.

Glad to hear this, it needs to get done sooner rather than later.

Next, I asked Jonathan what is going on in private credit where I noted events surrounding Blue Owl Capital and some people like John Graham warning that underwriting standards have become fast and loose in some corners of the private credit market. 

Jonathan replied:

Well, I'm not worried about OMERS. And the reason why I'm not worried about OMERS is our strategy is to hold the pen on every credit we underwrite ourselves, and not to invest through funds where others have control of that for us. That means that we apply our own underwriting standards. We do deal with some relationships with third parties who bring us transactions to look at, we evaluate them all ourselves, and we underwrite them to our standards. And so what I can tell you about our book is I'm very pleased with the quality that I see. We're pleased with the performance that we've had. We've been nudging up our allocations of capital into that book. But we do see issues out there in the market that, frankly, are impacting our book, but which are impacting others. And so, like you, we're reading and we're hearing about that, but I'm not worried for OMERS.

Blake added:

We really are disciplined about not adding a blank check within some four corners of an agreement, but rather doing our own due diligence and underwriting on every loan of substance and so far Leo, our delinquency and default record is is superior. And that really is encouraging. 

I ended by noting this:

I know you guys keep getting criticized about not investing enough in Canada, but we covered all that, those angles as well. I foresee you and rest of Maple 8 are going to get criticized for not beating the S&P 500 pr S&P TSX. And your response would be, we're not there to beat the S&P every year, we're there to meet the liabilities of our pensioners. Is that correct?  

Blake responded:

Thank you. And our plan, which you've also heard me say multiple times, is 1,2,3,4,5. Between now and 2030, our ambition is to be 100% plus a cushion funded. Our $150 billion, roughly, will be $200 billion of equity. Three stands for three geographies, very prescriptive strategies. If we can't be great at something, we don't go there. Four for $400 billion plus of AUM. We are moving fast approaching half a trillion dollar enterprise between now and 2030. And to your final point, five stands for a 5% real which we've been able to deliver for five and 10 years, respectively. And when you look through and go back to the first objective, we will be significant. We will have a significant cushion in our funded status by delivering a 5% real, and we're measured by bridging that gap and giving our pensioners some optionality and a big cushion, not by some other metrics or some other, abstract number that doesn't pertain to our known liabilities. So that's the that's the message.

Great way to end our discussion. 

Once again, I thank Blake and Jonathan for a great discussion and Don for setting it all up.

Below, worry in the private credit market continued Monday after Blue Owl last week permanently closed one of its tech-focused funds — preventing investors from withdrawing their cash every three months as they’d previously been allowed. The firm began selling assets to return investor capital. 

It’s the latest sign of tumult in a $1.8 trillion market stricken with worry about overspending on artificial intelligence, the technology’s disruptive power and lending standards more broadly. And it’s evoking comparisons to the run-up to the 2008 financial crisis. Bloomberg News Senior Editor for Credit James Crombie joins Bloomberg Businessweek Daily to discuss. He speaks with Carol Massar and Emily Graffeo.

Pressure on Blue Owl Capital (OWL) isn't letting up after an asset sale meant to calm investor worries last week sparked new concern from top government officials about the $1.8 trillion private credit industry.

"We are concerned," Treasury Secretary Scott Bessent said Friday when asked about the growth of Blue Owl and other private lenders over recent years. "If there is something rotten, it is not going to be handed to the individual investors," Bessent said.