Ontario Teachers’ Pension Plan to pause private China deals to avoid geopolitical risk, sources say
- The Ontario Teachers’ Pension Plan has about C$5 billion invested in China, equal to about 2 per cent of its portfolio, according to a spokesman
- Ontario Teachers’ manages funds for 333,000 retired and working teachers in Canada’s most-populous province
Ontario Teachers’ Pension Plan (OTPP), a Canadian fund that manages C$242.5 billion (US$181 billion) of assets, has paused direct investing in private assets in China, according to people familiar with the matter.
Geopolitical risk is among the reasons behind the pension fund’s move, said one person, who asked not to be identified discussing a sensitive matter.
“Our current focus is on listed securities, building value in our existing portfolio, and investing in public and private assets via fund partners,” rather than direct private investments, according to a statement from Dan Madge, a spokesperson for Ontario Teachers’.
Canada has already started restricting Chinese investment in its critical minerals sector, ordering three Chinese firms to divest from a trio of junior lithium explorers in early November. The country has also proposed to change its foreign investment law, creating new powers for a cabinet minister to impose conditions on deals to protect national security.
Teachers’ has about C$5 billion invested in China, equal to about 2 per cent of its portfolio, Madge said. Direct investments include online education start-up Zuoyebang, community group buying company Xingsheng Youxuan, and micro lender CD Finance, according to its website.
