The Investment Management Corp. of Ontario announced a 7.4% return for 2025, underperforming its consolidated benchmark return of 8.8%. Assets of the crown corporation rose to C$90.7 billion ($65.66 billion) as of December 31, 2025.
The fund, which manages assets for public sector entities in the Canadian province of Ontario, had the strongest returns in its equities portfolio, which returned 19.1% for the year. Public market alternatives returned 8.4%—a strategy discontinued in 2024 that aimed to achieve uncorrelated returns followed by global credit (6.7%), private equity (6.5%), infrastructure (5.1%) and fixed income (1.7%).
In the fund’s annual report, fund leadership attributed strong returns in the public equities portfolio to Canadian equities and those in emerging markets. IMCO increased its exposure to domestic equities in the latter half of the year. The fund also noted subdued returns in private markets and that shifts in the exchange rate between the Canadian and U.S. dollars cut returns.
“Despite an uncertain geopolitical environment and foreign currency headwinds, we delivered a solid 7.4 percent return,” said Bert Clark, IMCO’s president and CEO, in a statement. “Our focus is on generating consistent returns for our clients by building well diversified growth-oriented portfolios while avoiding large, concentrated positions, unnecessary complexity, efforts to market time and the pursuit of outperformance in areas where we do not have any clear advantage. In an uncertain environment, that disciplined approach continued to deliver solid results for our clients.”
As of the end of 2025, IMCO allocated 25% of its portfolio to fixed income and government bonds, 23% to public equities, 13% to infrastructure and real estate, respectively, 12% to private equity, 11% to global credit, 2% to money market funds and other asset classes, and 1% to public market alternatives.
The fund has a mandate to invest at least one-third of its assets inside of Canada. By geography overall, IMCO allocates 53% of its assets to investments to the U.S., 12% to Europe, 5% to Asia Pacific and 1% to other regions.
Over the past three years, the fund reported annualized returns of 7.6%, while five-year annualized returns stood at 4.6%.
“Our results over the last three years highlight the value of our investment approach,” said Rossitsa Stoyanova, IMCO’s CIO, in a statement. “As the investment horizon extends, performance increasingly reflects our diversified asset mix, systematic management of currency exposure, cost efficiency, and targeted pursuit of outperformance. This approach is designed to deliver resilient outcomes across market cycles for our clients.”
 |
IMCO Returned 9.9% in 2024 |
 |
Public Equities, AI Investor Optimism Fuel CPP Investments’ 5.4% Q2 Return |
 |
OMERS Returns 6% in 2025, Dragged by Private Equity |