Ontario Teachers' Pension Plan shifts to partnership investments

Ontario Teachers’ Pension Plan is changing how it manages its private equity investments. The fund is focusing more on partnerships instead of buying companies outright. This strategy aims to lower risk in an uncertain global environment. The Ontario Teachers' Pension Plan manages C$266.3 billion ($185.2 billion). Chief Executive Officer Jo Taylor explained that partnering with others can help reduce risks. He noted that long-term ownership strategies have worked for Canadian pensions in the past, but recent challenges, like high interest rates and trade issues, are prompting a rethink. Taylor mentioned that managing companies is becoming more complicated and requires more resources. Bringing in partners can help share the workload. While the focus is shifting, the Pension Plan is not completely abandoning the idea of buying controlling stakes in companies. The pension is also reorganizing its management team. Dale Burgess, the new interim director, will oversee not only private equity but also infrastructure and natural resources. The fund continues to evaluate its leadership needs in this area. Furthermore, Ontario Teachers’ is adjusting its approach to public equities. It plans to move away from actively picking stocks and will start investing in indexes instead. Taylor believes this passive approach is likely a better way to manage pensioners' money.