The University Pension Plan Ontario reported Tuesday a 5.2% return for 2025, slightly underperforming its nominal discount rate—the fund’s long-term expected rate of return—of 5.6%.
Assets managed by UPP rose to C$13.5 billion ($9.78 billion), up from C$12.8 billion at the end of 2024, and the pension’s funding surplus rose to C$300 million for a funding ratio of 103%.
As of the end of 2025, UPP allocated 35.3% of its portfolio to fixed income, 33.1% to public equities, 11% to absolute return strategies, 7.6% to inflation-sensitive bonds, 7.5% to infrastructure, 4.8% to private equity, 4.2% to private debt and 2.5% to real estate.
“2025 was a challenging year for investors. Geopolitical tensions, trade uncertainty, and ongoing questions about inflation and government spending kept markets volatile throughout the year,” said Aaron Bennett, UPP’s CIO, in the fund’s annual report. “Against this backdrop, UPP delivered a 5.2% total fund net return in 2025, contributing to a three-year net return of 8.5%—results that support our funding objectives and help maintain strong, sustainable pensions for our members.”
Infrastructure was UPP’s best-performing asset class in 2025, returning 20.8%. It was followed by public equities, which returned 16.2%. Absolute return strategies returned 12.6%, followed by private debt with a 0.2% return.
All other asset classes within UPP’s portfolio reported losses, with real estate falling 6%, fixed income falling 5.7%, private equity falling 3.7%, and inflation-sensitive bonds falling 2.2%.
The plan serves more than 46,000 members across six universities and 21 sector organizations across Ontario. In 2025, UPP paid C$620 million in pension benefits to its members, and it has surpassed $2 billion in private market commitments and investments since 2022.
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Tags: Canada, University Pension Plan