Layan Odeh of Bloomberg reports SpaceX windfall leads Ontario Teachers’ to 9.5% first-half gain:

Ontario Teachers' Pension Plan earned 9.5% in the first half of the year, driven by the initial public offering of Elon Musk's SpaceX.

Investments in venture growth, public equities and inflation-sensitive assets boosted returns, Chief Executive Officer Jo Taylor said in a statement Monday. Net assets climbed to C$303.2 billion ($217.5 billion).

Ontario Teachers' put money into Musk's Space Exploration Technologies Corp. in 2019, the inaugural investment for its venture growth arm. The space company now has a market capitalization of $1.8 trillion after completing its record-smashing IPO in June.

That was a "significant contributor" to the pension fund's strong first-half return, Ontario Teachers' said. Venture growth companies now represent 9% of its assets, up from 6% at the end of last year.

The Toronto-based fund has revamped its private equity strategy after posting a loss in that asset class in 2025 for the first time in 16 years. Private equity comprises 16% of the entire portfolio, down three percentage points from year-end, while public stocks are 21% of holdings, up from 18%.

Some of Ontario Teachers' notable investments during the first half include the acquisition of four multifamily residential assets in Germany alongside DW Effectum Residential. The pension plan also participated in financing the spinout of UK energy technology platform Kraken from Octopus Energy Group. 

James Bradshaw of the Globe and Mail also reports Teachers’ pension plan earns 9.5% in first half with boost from SpaceX shares:

Ontario Teachers’ Pension Plan reported a 9.5-per-cent return in the first half of the year, boosted by a stake in Elon Musk’s SpaceX that soared in value after the company went public and was briefly worth US$8.7-billion.

Teachers said Monday that it booked $26.6-billion of net investment income in the six months that ended June 30, and its investments gained 14.5 per cent over a 12-month span.

An early investment in Space Exploration Technologies Corp. “was a significant contributor” to the strong first-half gains for Teachers, the pension plan said in a news release.

The Globe previously reported that Teachers invested about $300-million in SpaceX in 2019 through its venture investing arm, then made follow-on investments. The massive expansion of the company’s value as it launched rockets, expanded its Starlink satellite internet business and merged with it. Mr. Musk’s artificial intelligence startup gave Teachers billions of dollars of gains on paper.

SpaceX listed its shares publicly through an initial public offering on June 12, and by June 30, Teachers held a stake worth nearly US$8.7-billion, according to a regulatory filing released last week.

The SpaceX share price has dropped since then, and at Friday’s closing price, the Teachers’ stake would be worth about US$6.7-billion.

The first of a series of lockup periods that restrict shareholders from selling SpaceX stock expired last week, giving many investors their first chance to cash in on a part of their investments in the company.

The portfolio of a few dozen investments that Teachers owns through its ventures arm accounted for 9 per cent of the plan’s $303.2-billion of assets at the end of June. One year earlier, those investments – SpaceX included – made up 4 per cent of the portfolio.

Over 10 years, Teachers has earned an average annual return of 7.8 per cent.

The pension plan’s first-half returns are “ahead of our target at this point in the year” and included “positive returns across asset classes,” chief executive officer Jo Taylor said in a statement.

Aside from the venture growth division, the plan’s most significant gains came from public equities and inflation-sensitive assets, but Teachers does not disclose detailed returns by asset class at the mid-year mark.

The plan was fully funded as of Jan. 1, 2026, and had a $31.2-billion preliminary funding surplus. 

Today, Ontario Teachers’ issued a press release stating it delivered a 9.5% total-fund net return in the first half of 2026:

2026 mid-year highlights:

• Net assets at $303.2 billion.
• Six- and 12-month total-fund net returns of 9.5% and 14.5%.
• Long-term returns of 7.8% over ten years and 9.4% since inception.
• Fully funded for the 13th straight year and the plan’s sponsors have indicated that they will file the valuation with appropriate regulatory authorities.

TORONTO (August 10, 2026) - Ontario Teachers’ Pension Plan Board (Ontario Teachers’) today announced a total-fund six-month net return of 9.5%, with net investment income of $26.6 billion. The one-year total-fund net return was 14.5%. Net assets are $303.2 billion, up $23.8 billion from year-end (all figures are as at June 30, 2026, and in Canadian dollars, unless noted).

“We delivered a strong start to 2026, with a total-fund net return that is ahead of our target at this point in the year. These results were broad based with positive returns across asset classes, with the most significant contributions coming from venture growth, public equities, and inflation-sensitive assets,” said Jo Taylor, President and Chief Executive Officer. “We have entered the second half of the year with good momentum to deliver our annual performance objectives.”

As the plan’s obligations extend decades into the future, longer-term performance is a key measure of success. Ontario Teachers’ has delivered an annualized total-fund net return of 9.4% since inception in 1990. The five- and 10-year annualized net returns were 7.7% and 7.8%, respectively.

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

Detailed Asset Mix  As at June 30, 2026 As at Dec. 31, 2025 Asset Class$ billions%$ billions%Equity    Public equity61.121%50.018%Private equity48.016%50.819%Venture Growth25.99%15.36% 135.046%116.143%Fixed income62.721%61.823%Inflation sensitive    Commodities30.110%32.112%Natural resources13.14%12.14%Inflation hedge12.54%11.94% 55.718%56.120%Real assets    Real estate28.210%27.910%Infrastructure44.815%34.513% 73.025%62.423%Credit39.313%38.314%Absolute Return Strategies24.58%25.29%Funding and other1(91.9)(31%)(87.3)(32%)Net investments2298.3100%272.6100%

 

1 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.

2 Comprises investments less investment-related liabilities. Total net assets of $303.2 billion as at June 30, 2026 (As at December 31, 2025 – $279.4 billion) include net investments and other net assets and liabilities of $4.9 billion as at June 30, 2026 (As at December 31, 2025 – $6.8 billion).

Funding Status

As of January 1, 2026, the plan was fully funded with a $31.2 billion preliminary funding surplus, underscoring its long-term financial health and sustainability. The plan’s co-sponsors, the Ontario Teachers’ Federation (OTF) and the Government of Ontario, have elected to file the preliminary valuation with appropriate regulatory authorities.

Corporate News

• Cathy Cranston was appointed Board Chair of Ontario Teachers’ Pension Plan, effective January 1, 2027. Ms. Cranston, who has served on the board since 2019, was appointed by the Government of Ontario and the Ontario Teachers’ Federation, the Plan’s co-sponsors. She will succeed current Board Chair Steve McGirr, who will retire at the end of the year after serving his full term.
• Adam Howard was appointed to Ontario Teachers’ Pension Plan’s board for a term that runs until December 31, 2028. Mr. Howard was appointed by the Government of Ontario.
• Ontario Teachers’ published its 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.

Investment Highlights

• Space Exploration Technologies Corp. (SpaceX), a spaceflight, telecommunications, and artificial intelligence company, listed its shares on the NASDAQ stock exchange, a significant milestone for the first investment made by Teachers' Venture Growth. SpaceX was a significant contributor to Ontario Teachers' total-fund net return in the first half of the year.
• Welcomed Integrum as a new shareholder in Allworth Financial, a U.S.-based registered investment adviser, as part of an expanded strategic investor group.
• Invested alongside joint venture partner DW Effectum Residential in the German residential market through the acquisition of four fully let multi-family residential assets in southern Germany.
• Established a new real estate joint venture with Equus Capital Partners, targeting core and core-plus assets in key markets across the U.S. The JV completed the acquisition of Ashton Logistics Park, a two-building Class A industrial portfolio located in Virginia.
• Participated in the financing supporting Kraken’s spin-out from Octopus Energy Group, a UK energy technology platform providing software and AI solutions to utilities.
• Co-led the Series F primary financing round for Ramp, a financial operations platform helping businesses streamline finance functions.
• Acquired a portfolio of royalties on critical minerals in Western Australia. The portfolio provides exposure to lithium, tin, and tantalum.
• Co-led a secondary share transaction in Vinted, a leading European second-hand marketplace.
• Subsequent to the period-end, completed the sale of all equity interests in Aethon III LLC, Aethon United LP, and related entities and interests. Aethon’s natural gas assets are primarily located in the Haynesville Shale formation.
• Subsequent to the period-end, reached an agreement to sell a 40% stake in Caruna, Finland’s largest electricity distribution company.

About Ontario Teachers’

Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of $303.2 billion as at June 30, 2026. 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.

Media Contact:

Dan Madge
Ontario Teachers' Pension Plan
Email: media@otpp.com

Note to editors: Please see attachment: 

2026 Interim Financials (PDF)

Forward-Looking Statements

This news contains forward-looking information and statements (“forward-looking statements”) that are intended to enhance the reader’s ability to assess the future financial and business performance of Ontario Teachers’.

The forward-looking statements include all information and statements regarding Ontario Teachers’ current beliefs, targets, intentions, plans, and expectations concerning its objectives, future performance, strategies, and financial results, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking statements often but not always use words such as “trend,” “potential,” “opportunity,” “believe,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “contribute”, “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.

Because the forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond Ontario Teachers’ control or are subject to change, actual results or events could differ materially from those expressed or implied. Although Ontario Teachers’ believes that the estimates and assumptions inherent in the forward looking information and statements are reasonable, such information and statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such information or statements due to their inherent uncertainty.

Ontario Teachers’ forward-looking statements speak only as of the date of this interim report or as of the date they are made and should be regarded solely as Ontario Teachers’ current plans, estimates and beliefs.

Ontario Teachers’ does not intend or undertake to publicly update such statements to reflect new information, future events, and changes in circumstances or for any other reason, except as required by law.

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 mid-year 2026 results. 

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

Jo began by giving me a brief overview of the results:

I would say we are always trying to find areas where we can do better for our members. As far as our returns for the first half of the year, we're pleased with the broad-based return as a validation of the strategies we've been working on for a little while. We are still working on parts of the private business to try and get it to where we would ideally still want it to sit from a risk-return point of view, but the performance overall has been broad-based, and I think pretty good.

I told him any time you're delivering 9.5% mid-year results, it's not just "pretty good", it's truly excellent. I asked Gillian if the first half of the year was the same story as last year or a bit different. She replied:

To Jo's point. I think this year is different in the sense that we were probably looking at more of the active strategies, and more of them were adjusting to a new market environment. We are really spending time around improving those returns. I think we're now feeling more confident around more of our strategies. The vast majority are working quite well.

I think private equity is still going through a bit of an adjustment. We're seeing positive results coming from creating a value creation team, leaning into the companies we hold. We're seeing positive operating performance come out of that. 

I think reading enough into valuations and multiples is still quite challenging with not a lot of transactions going on in the market, but we have been successful around selling, divesting some of the names that we hold, at valuations that we felt were good, and so I'd say the portfolio is shifting. But it's it's a slow shift. It's a slow shift on private equity assets, as you know. 

All fair points that Gillian made, and the shift in private equity indeed takes time. Because OTPP doesn't disclose returns by asset class in their mid-year update, only the asset mix weightings, I asked Stephen if the increase in weighting in some asset classes (Public Equities, Venture Growth and Infrastructure) was due to better relative performance. He confirmed this:

I think the bulk of the increase is really driven by that organic kind of return growth across those asset classes, and in other ones, we have made adjustments kind of inter-period that you might not be able to see by just looking at the asset mix chart. But that would be the large part of that shift that you'd be picking up in the asset mix report.  

Stephen also added that they didn't make any big asset allocation decisions in the first half of the year (meaning a big 5% move in any asset class). I then noted that this year, we saw a big selloff in momentum stocks after a big run-up but they seem to have snapped back for now. I said if this continues and we see growth and hyper-growth stocks outperforming value stocks again this year, it will be another tough year for private equity on a relative basis. Jo stepped in to share this:  

We've been a little cautious about public markets for a couple of years. It just shows how hard it is to predict the correction point, or if there is a correction, how long it's going to last, and how deep it's going to be. As you know, many people thought that on Liberation Day, with that correction, that was the start of something more significant, which didn't hold. Our job is really to try and deal with all situations that we can with a portfolio that is pretty well balanced.  The other thing is I would have expected a little more clarity around growth and inflation, which sort of hasn't really played through to the level I would have expected six months ago.  I don't have the crystal ball. I think we just have to try and sort of do our best for the markets we see. And certainly, Stephen, particularly in terms of composing our portfolio, is trying to think through how to manage the downside as much as if things continue to grow as they have. 

I totally get it, and told Jo, |Gillian and Stephen that OTPP isn't the only major Canadian pension fund/ plan that is cautious on public equities given the high valuations and concentration risk, but the big difference is OTPP invested in SpaceX early and will likely make huge gains there as well as Anthropic when it goes public.  I asked them if they have made a decision on SpaceX and how they will manage this position. Jo responded:

I mean, it's a large holding for us, so we know we have to be thoughtful about that. I'd also say we're trying to understand where the business is going between its core business, which is the Starlink activity, which is essentially what we invested in in 2019, and some of the newer activities and how they're going to complement that business and actually either help to continue grow returns or not. So I think that some of that still needs to be worked through.

I told them I'm still trying to figure out whether SpaceX at these levels represents a great long-term investment (my bear extreme bear case is a 50% haircut from IPO debut, but that's unlikely unless we see a major crisis).

I moved on to real estate, where Stephen shared some insights on that portfolio:

I think things do feel like they've stabilized there, and certainly in the smaller marketplace, we've seen a very strong demand for office of late over the last six to twelve months.

Now that's a pretty short-term indicator, and as you know, real estate's a perpetual asset or a long-term asset. But we're seeing some very encouraging signs both here in Canada and also in other parts of the portfolio.

If you recall, the last couple of years, we've been trying to think about that portfolio on a global basis and trying to make sure that we've got the right portfolio construction within real estate across geography and sectors, and so we're continuing to see that bear fruit in terms of the overall portfolio. So, cautiously optimistic for the real estate aspect.

I noted that Infrastructure continues to do well, with electricity transmission being a big part of that portfolio, providing steady returns.  

Stephen commented:

I'll make a top-down comment, and and both real estate and infrastructure are really meant to be those, for lack of a better term, those steady Eddies, very predictable returns, provide those those inflation-sensitive kind of cash flows, if you will, and we're seeing that in the infrastructure class, certainly in the first six months, in terms of of delivering on kind of expected return, for lack of a better concept. But Gillian, I don't know if you want to add something...

Gillian chimed in:

No, I think that's right. We're seeing good, steady performance out of infrastructure. I think to the points before, obviously, the plan is very focused on both growth and inflation, and just thinking through how that inflation is going to feed through to infrastructure assets, your your sort of core contracted assets, etc. 

That is still a steady part of our portfolio. We're pleased with that. As you mentioned, electricity transmission is one of the good performers there. We're pleased with that exposure.

I recently discussed how OTPP and KKR sold their stake in Caruna to Iberdrola, explaining that if the price is right, they will sell stakes in infrastructure.

Gillian noted: "If you can get paid for forward growth today, you sell it today with certainty rather than taking on continued risk for that forward growth. So no, it's absolutely a rational decision."

I asked them where they see the biggest opportunities right now and Stephen replied:

I'm going to give you a boring answer. One of the ways of our strategy is to be in a position of having flexibility and not being forced into trying to kind of hunt for opportunities that might not be as attractive as everybody thinks. That's not necessarily a statement that that's where we are in the cycle, but we do have the benefit of the flexibility of both scale from an investing perspective, but also a very strong funding position that really allows us to kind of think about where we want to play.

That changes the decision in terms of trying to force investments into the world versus having the ability to be very selective, and that's really premised again, as I said, on that funding ratio component, but also trying to think about the portfolio across a number of different economic scenarios and really delivering that resilience. And we're quite happy with all portfolio construction in terms of not necessarily needing to kind of lean into any one opportunity at the current.

The second part of my question was on liquidity and seizing opportunities as they arise. Stephen added this:

There are two components to your liquidity question. I would start with we've always focused on liquidity, making sure that we have the ability to kind of meet our you know short-term liabilities or short-term commitments, be that pension or other other payments, and we've always managed that very diligently with with a fairly sophisticated kind of mechanism to do that. 

I think the other part of your question was more about that kind of opportunistic liquidity piece, and kind of maintain what I'm going to say, very comfortable liquidity levels. I'm being a bit more hedging that statement because liquidity is one of those things that you have it, and then you don't have it, and so I think we want to make sure that we're careful with how we use it as we kind of look at a world that still continues to be pretty volatile.

I also asked Jo about inflation and why they're preoccupied with it. he answered:

Well, it's certainly a relevant feature for our portfolio. Our liabilities are fully inflation-linked, so the one thing that actually will adjust our surplus would be if inflation starts to spike or perpetuate on a long-term basis.

We have a significant exposure to what we call an inflation-sensitive part of our portfolio. It performed well in 2026. We are pleased with what's in there and how it's responded. You know, we also have real estate and infrastructure, as Stephen mentioned a minute ago.

I would say our allocation to things to deal with inflation feels like we got about the right amount there. Our job is really to react or anticipate, ideally, things that are changing and make adjustments.

But you know, when you have a portfolio that's producing 9.5% at the first half, you probably say it's feeling like it's reasonably well constituted. I think the two features we will probably monitor the most. I would have said 12 months ago, it's growth and inflation. I'd probably say today it's probably inflation and equity valuations.

I think it's safe to say inflation and equity valuations are on everyone's mind.

I asked Jo if they are beating their benchmark in the first half and he confirmed they are (this is where SpaceX adds value).

At this point, Stephen chimed in:

Can I just add to that? Because again, I think there's a lot of discussion around benchmarks. Yeah. I think when we're building the portfolio, we have a return objective that we really need to deliver over the long term to satisfy our pension requirements, and our 9.5% was well in excess of that kind of required rate return. So, I think that should be very aligned with improving our funding ratio over time as the various decisions get made related to that part of the calculation.

I asked whether 6% is their actuarial target and Jo responded:

It's a shade more than that. We keep a close eye on the assets that we have and how that's growing because that's real return, really in terms of what we're making. So we flipped over the target I said when I took over as CEO of $300 billion with these results, which is great a bit earlier than we expected.

The other one is that we are well funded. We have a good, strong surplus. We don't become complacent about that. But I think the more we can see that we have some contingency in our sort of funding, I think it gives us a very strong platform to go out and make the decisions we have to make in what is still a relatively absurd world, you look at Iran and various other things going on. It's not straightforward to anticipate where we're headed next.

Indeed, nothing is straightforward in this wacky world dominated by geopolitical and other tensions.

Gillian Brown had the last word on benchmarks and long-term performance, stating this:

I think that it's important that we recognize what parts of our business are doing well or not, and where we think that a business isn't performing as well as we'd like to see, that we're leaning in. I think that's the private equity story in creating our value creation team and really leaning into the operating performance of businesses that we have, so I think there's probably a balance between you know, too short-term and reactive, but also between sort of being too passive when you think something isn't working anymore, and we're not keeping that up.

Once again, I thank Jo, Gillian and Stephen for another excellent discussion.

Obviously, the news media is just focusing on SpaceX and its contribution to performance -- and with good reason -- but there are so many more moving parts to OTPP's portfolio. 

Clearly, OTPP is going to have an excellent year in 2026, barring some major catastrophe.

Below are two recent interviews featuring OTPP's CEO, Jo Taylor, which are worth listening to. 

Sean Conlon, Hugh Leask, Justina Lee and Sarah Min of CNBC report the S&P 500 rises to record close Friday and posts strongest week since April: 

The S&P 500 rose on Friday as traders interpreted an unexpected loss of jobs in July as meaning the Federal Reserve won’t need to raise interest rates soon and can leave monetary policy on hold for now.

The broad market index advanced 0.62% for a record close of 7,757.64, while the Nasdaq Composite outperformed, climbing 1.3% to 26,690.62. The Dow Jones Industrial Average added 151.83 points, or 0.28%, to end at 54,036.93.

Stocks posted a second straight week of gains. The S&P 500 — which closed above 7,700 for the first time ever earlier this week — advanced 3.6% in the period. The Nasdaq saw a gain of 5.2%, thanks to a bounce-back in chip stocks. The iShares Semiconductor ETF (SOXX) ended the week up more than 7%. The Dow, on the other hand, gained nearly 3% during the week. All three indexes notched their best weekly performances since April.

July’s nonfarm payrolls report showed a drop of 23,000 jobs, while economists polled by Dow Jones had forecast a gain of 83,000. The unemployment rate fell to 4.1% as the labor force participation rate fell to its lowest level in more than five years. Economists had expected it to remain unchanged at 4.2%.

A majority of fed funds futures traders now expect that the central bank will hold its benchmark lending rate at the current 3.50% to 3.75% at the next policy meeting in September, per the CME FedWatch tool. Just a day ago, traders were pricing in a 55% chance of a quarter-point hike.

“For the job market this is a number that’s not booming and may actually be breaking, but for the markets the two biggest areas of concern were yields and inflation,” Saira Malik, Nuveen chief investment officer, said on CNBC’s “Squawk Box.” “This lower number helps not reinforce the Fed’s narrative that they need to raise interest rates.”

Software stocks helped lead the market higher Friday as the latest round of earnings dispelled fears that artificial intelligence would disrupt the industry. Cloudflare popped more than 5% after the cloud cybersecurity company issued a solid full-year and current-quarter outlook. Shares of Atlassian jumped 35% after the company’s fourth-quarter adjusted earnings and revenue surpassed expectations and issued upbeat guidance.

Airbnb shares also rallied 17% after the vacation rental company posted a beat on the top and bottom lines.

Oil prices, meanwhile, were slightly higher as investors awaited a potential deal from the U.S. and Iran to reopen the Strait of Hormuz. Treasury Secretary Scott Bessent had told CNBC earlier in the week that the two sides could reach a deal soon.

West Texas Intermediate futures for September delivery were up 1.15%, settling at $78.18 per barrel, while Brent crude, the international benchmark, climbed 1.29% to settle at $83.55.

“The conclusion is that a resolution will be forthcoming in the not too distant future, and if those conditions change, then you’re going to see angst crawl back into the market,” said Terry Sandven, U.S. Bank Asset Management’s chief equity strategist. “But at present, the wall of worry is crumbling.” 

This was a fantastic week in the US stock market, led by -- you guessed it -- momentum stocks that were recently clobbered and snapped back viciously:

Just have a look at today's top gainers in the stock market (full list here): 

 And have a look at this week's top-performing US large cap stocks (full list here):

You'll see stocks like Atlassian Corp (TEAM), Twilio (TWLO), SpaceX, Palantir (PLTR), Paycom Software (PAYC), Shopify (SHOP), and Ionq Inc (IONQ)  all posted huge gains.

SpaceX (SPCX) came back strong in the latter half of the week after getting clobbered on Wednesday when it reported its first earnings report (it was down a lot prior to then).

When I see these hyper-growth stocks ripping higher, it tells me this market is on RISK ON mode, it wants to make new highs. 

Last week, it was all about Situational Awareness and how that fund imploded.  

I told my readers to pay attention to Aschenbrenner’s positions, all 34 of them available here. 

The short covering we saw last week, carried into this week.

So, what's next?

Again, look at the daily chart of the momentum ETF:

Massive short covering over the past two weeks led to the pop; that's clear to me.

Going forward, it has to sustain a move above its 50-day moving average to create a new uptrend.

The problem?  As stocks make record highs, bullish sentiment reigns.

This morning, I read that the Bank of America sentiment gauge hit its most extreme level since 2021.

That isn't good news from a contrarian standpoint; it means too many investors see things as very rosy.

But on the flip side, Treasury Secretary Scott Bessent admitted the US helped Japan support the yen, and that may end up shaping market behavior. 

There's a lot of liquidity and leverage out there, supporting all risk assets, not just stocks.

Below, the CNBC Investment Committee debate what catalysts the market needs to get the S&P to 8,000 by year-end (from Thursday's show).

Also, Tom Lee joined CNBC on August 6 to make the case that the chase toward 8,000 is already underway.

Lastly, John Belton, Gabelli Funds growth equities portfolio manager, joins 'Squawk Box' to discuss the latest market trends, key takeaways from earnings season, and more.

Peter Rubinstein of Northeastern Global News reports this student wowed one of Canada’s largest pension funds with custom automation:

When Darhlilove Botchway arrived in wintery Toronto in 2025 from his home in Ghana, he felt like a fish out of water. The subfreezing temperatures shocked his system, which was accustomed to West Africa’s consistent heat. Canadian cuisine was also unfamiliar to him, he said.

“My taste buds did not really want to cope from the beginning,” he said, chuckling as he recalled his move to pursue an information systems master’s degree at Northeastern University in Toronto.

But just as he did after moving to North America, Botchway was quick to adapt and excel as a co-op at OPTrust, a prominent pension fund just a short walk from Northeastern Toronto’s downtown campus. 

OPTrust, where Botchway is an IT auditor, is responsible for ensuring that about 118,000 workers employed by the Ontario government and other agencies receive retirement benefits. 

Just as those public service employees rely on OPTrust to manage their earnings, the company leans on auditors like Botchway to ensure its operational security is airtight, he said. Botchway is tasked with identifying and mitigating security risks, creating processes and controls to shore up potential weak points in the company’s software infrastructure.

“Anything that goes wrong, especially with our critical business applications, could have a very devastating impact on our financial reporting at the end of the year, and that could really affect the organization,” Botchway said. “It really puts you in a position where, even as a developer, right from the onset, you begin to think about what could possibly go wrong: how could someone break into the system?”

Botchway said his role is important because of the high-stakes financial landscape OPTrust occupies. By the end of 2025, the company held more than $27 billion in net assets, earning it a coveted spot among the 10 largest pension funds in Canada, which are nicknamed the “Maple Revolutionaries.”

As he grew familiar with the role and its responsibilities, Botchway said he also took the initiative to think up other ways to optimize the company’s workflow. He drew from his previous automation experience at KPMG Ghana, a network of audit, tax and advisory firms, to streamline two particularly time-consuming processes at OPTrust.

For instance, Botchway constructed an automation tool that pings the person scheduled to host a daily meeting, shares details about the meeting’s contents and provides helpful links to resources they can use to plan their presentation. He also made a previously manual task obsolete by building an automated delivery service that sends a monthly report with status updates on ongoing tickets to OPTrust’s management team.

Botchway’s supervisor at OPTrust said that he consistently distinguished himself through “exceptional initiative, a proactive work ethic, and a strong problem-solving mindset,” according to Himadri Dave, a co-op adviser at Northeastern’s Toronto campus. “Rather than simply completing assigned tasks, Darhlilove regularly seeks out additional responsibilities, volunteers for new challenges, and looks for ways to improve processes for the benefit of the team,” the supervisor told Dave in a report during his co-op.

Because of his exemplary work in risk mitigation and his forward-thinking implementation of automation to streamline various internal processes, OPTrust offered Botchway a rare eight-month extension of his co-op placement, which would have otherwise only been four months.

“I think the best feedback we have received from any employer has been for Darhlilove,” said Dave, who worked closely with Botchway on his professional development. “They were even asking us if there’s a way they could keep him forever and not let him go back to the university.”

As for Botchway, he found a way around the cold. He found an underground tunnel system that kept him warm on his route to campus and swiftly came to appreciate the city’s cultural diversity, he said.

Botchway also said his introduction to Toronto company culture and the ways in which teams with different responsibilities work together have been his greatest takeaways from Northeastern.

The auditing and risk mitigation skills gained through his co-op will carry him forward as he pursues a Certified Information Systems Auditor certification before his graduation in May 2027, he said.

“That’s something I’m really proud of because I know how difficult it is, especially in my position, to extend a contract,” Botchway said of his time with OPTrust. “For someone to have that level of confidence in you, I don’t take that lightly.” 

I love this story and want to share it with my readers.

Why? Because Darhlilove Botchway represents the very best possible co-op student a large pension fund can ask for, and OPTrust rightly rewarded him by extending his contract by eight months, which is very rare.

A native from Ghana, he moved to Toronto in 2025 to pursue an information systems master’s degree at Northeastern University in Toronto.

What I love the most about him is his entrepreneurial attitude and willingness to challenge the status quo to improve the way things work at OPTrust:

For instance, Botchway constructed an automation tool that pings the person scheduled to host a daily meeting, shares details about the meeting’s contents and provides helpful links to resources they can use to plan their presentation. He also made a previously manual task obsolete by building an automated delivery service that sends a monthly report with status updates on ongoing tickets to OPTrust’s management team.

Botchway’s supervisor at OPTrust said that he consistently distinguished himself through “exceptional initiative, a proactive work ethic, and a strong problem-solving mindset,” according to Himadri Dave, a co-op adviser at Northeastern’s Toronto campus. “Rather than simply completing assigned tasks, Darhlilove regularly seeks out additional responsibilities, volunteers for new challenges, and looks for ways to improve processes for the benefit of the team,” the supervisor told Dave in a report during his co-op.

When co-op students ask me how they can get a co-op job at one of Canada's largest pension funds, I tell them straight out: "You need to network and differentiate yourself."

I also add: "You have to be lucky, landing these jobs isn't easy, so don't take it personally if you can't land one right away." 

But getting a co-op job is one thing; impressing your boss and others at the organization you work at is far more important. 

You need to take initiative, figure out how to make things run better and it's fine if your boss takes all the glory, even though I'm a big believer in giving credit to the people who deserve it (I loathe bosses who do not give credit to their employees when they deserve it).

To all co-op students, please stop asking me if you should work at BCI, La Caisse, PSP, CPP Investments, or at any other large Canadian pension fund.

First, get a job, and then if you land a job, keep your head down, work hard, and seek to add value to the team where you're working in a proactive, collaborative, and constructive way.

Also, listen and learn from people around you, soak up as much as possible, especially if you're lucky enough to have great mentors. 

In short, learn from Darhlilove Botchway, his attitude and gratitude are spot on.

OPTrust is lucky to have such a co-op student working in IT audit.  

Below, Richard Knight, Principal, and US IT Internal Audit Solutions Leader at KPMG, emphasizes how the internal auditor of tomorrow will need to possess a blend of business and IT skills, with a strong foundation in emerging technologies such as AI and data analysis, requiring a more rounded and integrated approach to auditing.

Freschia Gonzales of Benefits and Pensions Monitor reports Canada's private sector shed 25,800 pension members in 2024:

Canada's private sector lost 25,800 registered pension plan members in 2024 even as national membership climbed to nearly 7.4m, exposing a widening split between public and private workplace retirement coverage. 

The overall gain of 132,000 members, or 1.8 percent, from 2023 came almost entirely from public plans.  

According to Statistics Canada, public sector plans added nearly 157,900 participants, a 4 percent increase, taking the public total to just over 4m. 

Private sector membership, by contrast, fell 0.8 percent, dipping below 3.3m. 

Coverage is thinning even as the raw numbers grow.  

The pension coverage rate, or the share of paid workers who belong to a plan, slipped to 37.6 percent in 2024 from 37.7 percent a year earlier, extending a decline that the agency traces back to 1977. 

Defined benefit membership drove the private sector drop.  

DB membership fell by 21,300, or 1.6 percent, over the year, a decline concentrated among private employers.  

Even so, DB plans remained the dominant structure, holding 68.1 percent of all RPP membership and more than 5m active members, as reported by Statistics Canada.  

Steve Hatzipantelis, vice-president of wealth at Ontario-based credit union YNCU, blamed cost for the shift.  

He said private employers have cut DB plans by about 1.6 percent, moving away from "costly defined benefit structures" toward defined contribution and other models. 

Daniel LeBlanc, portfolio manager at wealth management firm Verecan, tied the divergence to how each sector treats retirement.  

Public sector pensions "remain a key part of employee compensation and retirement security," he said.  

Private employers, by contrast, face plans that "are expensive to administer" and have moved toward alternatives such as Group RRSPs. 

Total contributions to registered plans still rose.  

Employers and employees together put in $83.6bn in 2024, up $4.2bn or 5.4 percent from 2023, the data show.  

Women continue to anchor the DB base, holding 56.1 percent of DB membership, a share weighted toward the public sector plans in health care, education, and public administration.  

The erosion of private DB coverage lands as Canadians report rising unease about retirement.  

In its 2026 Canadian Retirement Survey, the Healthcare of Ontario Pension Plan found that only 58 percent of unretired Canadians have saved for retirement at any point, fewer than half saved in the past year, and 38 percent say they are falling behind on their current standard of living, up eight points from 2025.  

Workplace pensions are viewed as a hedge: 68 percent said such plans are more valuable in uncertain times, and 85 percent said all workers should have access to an affordable retirement savings arrangement, HOOPP reported.  

Canada's DB base still dwarfs that of its largest trading partner.  

South of the border, the US Bureau of Labor Statistics reported that, as of March 2025, 72 percent of private industry workers had access to retirement benefits, but only 14 percent had access to a defined benefit plan against 70 percent with access to a defined contribution plan.  

The contrast underlines how far the US private sector has already moved toward DC, and the direction Canadian critics say private employers are travelling.  

LeBlanc said workers without a pension can copy its mechanics. 

Those in a plan have contributions "automatically deducted from their pay," he said, and others can do the same with recurring contributions to an RRSP or TFSA.  

Hatzipantelis added that "the earlier (you start) the better," since it builds the discipline a sound retirement requires. 

I already covered the HOOPP and Abacus Data 2026 Canadian retirement survey here.

Recall the key points:

63% of people between the ages of 55-64 say they don’t feel prepared for retirement.

57% of respondents said one of the reasons they have not been able to save for retirement is that they live paycheque to paycheque.

43% felt they may never be able to retire because of their financial situation, while 50% said they would need to continue working in their retirement years to support themselves financially.

41% of respondents who are homeowners plan to rely on the sale of their home as part of their retirement planning, but 60% are worried about their ability to pay off their mortgages in time so they can retire when they want to.

71% of respondents aged 18-34 who don’t own a home felt higher interest rates will impact their ability to buy a home in the future; 84% of that group also said they were concerned about the increasing cost of rent. 

Clearly, there is a widening retirement gap in Canada between private and public sector employees. 

The latter have access to gold-plated DB plans backed by the municipal, provincial, or federal government, whereas the former are increasingly being asked to switch to a group RRSP, if they're lucky.

These figures are important to track.

From a public policy perspective, the more Canadians who retire with a DB plan, the better it is for our economy over the long run. 

Why? Certainty of income in their golden years allows them to spend more, governments reap more taxes, and it's just generally better for the economy. 

Conversely, increasing retirement angst has the opposite effect on our economy as people spend less.

"Leo, it doesn't matter. Haven't you ever heard of the trickle-down theory?"

Yes, I have and it doesn't work to bolster retirement systems or economic prosperity in general.

Canada has some of the best DB pension plans in the world but overall coverage remains abysmal, especially for private sector workers.

CAAT Pension Plan, OPTrust, HOOPP and others are doing their part to improve coverage but the trend is clearly showing loss of DB pensions in the private side.

Keep that in mind, it's an important trend.

Below, everything you need to know about Canada's government pensions: CPP, OAS & GIS.

Josh Welsh of Benefits and Pensions Monitor reports IMCO adds $300 million in pension assets with Hamilton mandate:

The Investment Management Corporation of Ontario (IMCO) has been selected to manage approximately $300 million in pension assets for the City of Hamilton, consolidating three legacy defined benefit (DB) plans that cover more than 1,000 retirees, deferred members and beneficiaries, according to its press release Thursday.

According to the organization, the mandate will require an onboarding process during which IMCO will work with the city on investment decision-making and transition planning for the legacy portfolios

The mandate marks the first time one of Ontario's largest municipalities has outsourced legacy pension fund management to IMCO. The arrangement covers only the city's closed legacy plans, which are distinct from its “open” pension fund managed separately by another manager, according to IMCO. Hamilton's active pension fund will continue to be managed separately by another provider, the firm added. 

"The City of Hamilton's decision reflects the strength of our investment platform," said Bert Clark, president and CEO of IMCO. "We provide our clients with an end-to-end, cost-effective investment solution. Expert governance, strong liquidity and risk management, and high-quality reporting and disclosure are essential to managing public funds effectively.”

Growing municipal interest in pooled investment platforms

Hamilton's move follows a pattern of Ontario broader public sector organizations shifting pension investment management to IMCO rather than running it in-house. The City of Ottawa's OC Transpo Employees' Pension Plan is already an IMCO client, as are the Ontario Pension Board (OPB), the Workplace Safety and Insurance Board (WSIB), the WISE Trust Pension Plan, the Provincial Judges' Pension Board, Ontario's Pension Benefits Guarantee Fund, Tarion Warranty Corporation and the Ontario Clean Water Agency.

Complexity driving outsourcing decisions

Clark pointed to rising investment complexity as a factor pushing more public sector organizations toward external management.

"Many Ontario public sector organizations whose core mandate is not investing continue to manage public funds directly," he said. "But, in an increasingly complex investment environment, more are recognizing the value of joining IMCO."

IMCO, which manages $90.7 billion in total assets, operates on a not-for-profit, cost-recovery basis. It offers clients asset mix advisory services, access to a diversified range of asset classes including private markets and alternatives, and portfolio-level risk management and reporting. 

Last week, IMCO issued a press release stating it has added the City of Hamilton as a new client, expanding its public sector investment partnerships across Ontario:

TORONTO (July 30, 2026) – The Investment Management Corporation of Ontario (“IMCO”) today announced that it has been selected to provide investment management services to the City of Hamilton, supporting the long-term sustainability of the City's pension obligations.

“The City of Hamilton's decision reflects the strength of our investment platform. We provide our clients with an end-to-end, cost-effective investment solution,” said Bert Clark, President and CEO, IMCO.

Following an evaluation process, IMCO was selected to manage approximately $300 million in assets for the City of Hamilton. The mandate consolidates three legacy plans supporting more than 1,000 retirees, deferred members and beneficiaries. The mandate is focused specifically on legacy pension funds, which are distinct from its “open” pension fund managed separately by another manager. IMCO will work with the City on onboarding and investment decision-making.

With the addition of the City of Hamilton, IMCO continues to expand its role as a trusted partner to public sector institutions across Ontario. IMCO provides its clients with access to asset mix advisory services, a full range of asset classes and comprehensive risk, portfolio management and reporting services, all on a cost-recovery basis.

IMCO's growing roster of clients includes:

• Ontario Pension Board (“OPB”), administrator of the Public Service Pension Plan
• Workplace Safety and Insurance Board (WSIB), Insurance and Loss of Retirement Income funds
• WISE Trust Pension Plan, administrator of the WSIB Employees’ Pension Plan
• Provincial Judges’ Pension Board, administrator of the Provincial Judges’ Pension Plan
• Ontario's Pension Benefits Guarantee Fund (PBGF)
• City of Ottawa, administrator of the OC Transpo Employees’ Pension Plan
• Tarion Warranty Corporation’s Guarantee Fund (Tarion)
• Ontario Clean Water Agency’s (OCWA) reserve fund

“Many Ontario public sector organizations whose core mandate is not investing continue to manage public funds directly. But, in an increasingly complex investment environment, more are recognizing the value of joining IMCO,” continued Clark.

“Expert governance, strong liquidity and risk management, and high-quality reporting and disclosure are essential to managing public funds effectively.”

About IMCO

The Investment Management Corporation of Ontario (“IMCO”) manages $90.7 billion of assets on behalf of its clients. Designed exclusively to drive better investment outcomes for Ontario's broader public sector, IMCO operates under an independent, not-for-profit, cost recovery structure. We provide leading investment management services, including portfolio construction advice, better access to a diverse range of asset classes and sophisticated risk management capabilities. As one of Canada's largest institutional investors, we invest around the world and execute large transactions efficiently. Our scale gives clients access to a well-diversified global portfolio, including sought-after private and alternative asset classes. Follow us on LinkedIn and X @imcoinvest. 

I'm going to briefly go over my thoughts here.

First, and most importantly, I agree with IMCO's CEO Bert Clark:

“Many Ontario public sector organizations whose core mandate is not investing continue to manage public funds directly. But, in an increasingly complex investment environment, more are recognizing the value of joining IMCO. Expert governance, strong liquidity and risk management, and high-quality reporting and disclosure are essential to managing public funds effectively.”

In short, there are a lot of public sector organizations in Ontario that have no business whatsoever managing a pension plan, and their members would be better served over the long run by IMCO or another well-governed DB pension plan.

Let me be frank here, Canada as a whole has way too many small to medium-sized public pension funds that would be better served by a larger pension platform (larger pension fund) with solid governance.

I'm a big believer in amalgamation when it makes perfect sense from an administrative and performance view.

I covered IMCO's 2025 results back in April here.  

For the most part, it's a solid pension fund that is run well. 

Is it perfect? No, none of them are, but when compared to the alternatives at the municipal level, no doubt in mind members are better off joining IMCO if they have a small plan managed internally (if they're with OMERS, stay the course).

IMCO is unique among the bigger Canadian pension funds in that it still has to fight to get new clients.

A $300 million mandate from the City of Hamilton is a big mandate, even if it's focused specifically on legacy pension funds, which are distinct from its “open” pension fund managed separately by another manager.

With scale, IMCO becomes larger, can negotiate better terms and be involved in bigger deals, especially on co-investments to reduce fee drag.

Lastly, I will mention that Jennifer Hartviksen, former Head of Global Credit at IMCO, has left the organization to become the Head of Global  Fixed Income at TD Asset Management.

Fernando Martinez has replaced her, and I wish them both well in their new roles. 

Below, Amy Wu Silverman, RBC Capital Markets head of derivatives strategy, joins 'Squawk Box' to discuss hyperscalers after second-quarter earnings season, AI and more.

And Ed Yardeni, Yardeni Research, joins 'Closing Bell' to discuss Yardeni's outlook for equity markets, earnings estimates and much more.