WEBVTT 1 00:00:06.480 --> 00:00:10.400 Okay, I think we'll get started. So good afternoon, 2 00:00:10.430 --> 00:00:14.290 and welcome everyone to this year's annual meeting for Ontario Teachers' Pension 3 00:00:14.380 --> 00:00:18.250 Plan. My name is Claire Holland. I'm a senior managing director at 4 00:00:18.280 --> 00:00:22.040 Teachers and very pleased to welcome you and serve as your host for the meeting 5 00:00:22.050 --> 00:00:22.330 today. 6 00:00:23.720 --> 00:00:27.320 For those in the room, we're glad you were able to be here despite the 7 00:00:27.400 --> 00:00:30.520 rainstorms, and I know there was some street-level activity as you 8 00:00:30.760 --> 00:00:32.920 arrived. So appreciate you were able to be here, 9 00:00:33.840 --> 00:00:35.780 as well as everyone who has joined virtually today. 10 00:00:37.000 --> 00:00:40.960 We really do value this opportunity for dialogue with all of our members each 11 00:00:41.040 --> 00:00:41.280 year. 12 00:00:43.520 --> 00:00:45.920 And we appreciate all of you being here. 13 00:00:45.960 --> 00:00:49.360 So for those in the room, headsets are available for simultaneous 14 00:00:49.400 --> 00:00:52.430 translation. It was at the registration table in the foyer. 15 00:00:54.700 --> 00:00:57.980 And we do have closed captioning right behind me, and we also do have reserved 16 00:00:58.020 --> 00:01:01.910 seating in the front right side if you would benefit from even a closer look at 17 00:01:01.960 --> 00:01:05.880 that. And those joining virtually also have the ability to enable 18 00:01:05.920 --> 00:01:08.780 closed captions and also switch between English and French. 19 00:01:10.400 --> 00:01:13.520 In terms of our agenda today, we have three main presentations. 20 00:01:13.980 --> 00:01:17.720 Charley Butler, our chief pension officer, will provide an update on our efforts to 21 00:01:17.780 --> 00:01:21.640 serve our members and some of the enhancements her team is making. 22 00:01:22.600 --> 00:01:26.510 Jo Taylor, our president and CEO, will speak to the Plan's financial performance, 23 00:01:26.910 --> 00:01:30.040 the broader investment environment, our approach to some of the themes that came 24 00:01:30.120 --> 00:01:34.020 out of our pre-meeting survey, so thank you for completing that, as well as 25 00:01:34.060 --> 00:01:36.180 our outlook for 2026 and beyond. 26 00:01:37.480 --> 00:01:40.860 And then our board chair, Steve McGirr, will provide his perspective on the Plan's 27 00:01:40.940 --> 00:01:44.820 progress, the broader macroeconomic environment, and the areas of focus at the 28 00:01:44.840 --> 00:01:45.100 board. 29 00:01:46.640 --> 00:01:49.140 Following the presentations, we will have a Q&A session. 30 00:01:49.760 --> 00:01:53.280 This will include questions submitted prior to today's meeting, of which we had 31 00:01:53.340 --> 00:01:57.039 many, thank you. Questions from those in the room as well online in the 32 00:01:57.080 --> 00:02:00.760 webcast. I will cover the format for that as we get closer to that portion of the 33 00:02:00.800 --> 00:02:01.100 evening. 34 00:02:02.220 --> 00:02:05.250 There's a lot to cover today. We've heard from you on a wide range of themes that 35 00:02:05.280 --> 00:02:09.230 are top of mind, and so we are committed to addressing as much as we can, 36 00:02:09.241 --> 00:02:12.109 both in the remarks we've prepared today, as well as in the Q&A I 37 00:02:12.120 --> 00:02:15.910 mentioned. To that end, before moving ahead, I just wanted 38 00:02:15.960 --> 00:02:19.340 to reinforce the participation guidelines which you would have agreed to when 39 00:02:19.380 --> 00:02:20.620 registering. They're behind me. 40 00:02:21.520 --> 00:02:25.400 And I would emphasize that includes engaging in a respectful tone, keeping 41 00:02:25.460 --> 00:02:28.980 questions and feedback brief to, again, allow us to cover as much as we can today. 42 00:02:29.580 --> 00:02:33.200 Please do refrain from filming in consideration of the privacy of your colleagues. 43 00:02:34.120 --> 00:02:35.700 So I think hopefully pretty reasonable things. 44 00:02:35.780 --> 00:02:39.740 As long as we're being respectful of each other and not yelling, throwing, 45 00:02:39.760 --> 00:02:41.930 and encroaching, I think we'll have a good meeting. 46 00:02:43.100 --> 00:02:46.800 So before we move to Charley to begin our presentation, I'm very pleased to welcome 47 00:02:46.840 --> 00:02:50.420 Michael Cherney, who will lead us in acknowledging the traditional territory on 48 00:02:50.440 --> 00:02:51.380 which we gather today. 49 00:02:52.360 --> 00:02:55.560 Mike is a member of our sustainable investing team, and he took a very active 50 00:02:55.600 --> 00:02:59.040 leadership role in the creation of our Indigenous Action Plan, which you may have 51 00:02:59.100 --> 00:03:00.940 seen recently published. Mike. 52 00:03:07.100 --> 00:03:07.760 Thank you. 53 00:03:09.460 --> 00:03:11.680 It's an honor to be here with everyone tonight. 54 00:03:11.740 --> 00:03:15.120 Before I deliver the land acknowledgement, I want to take a minute to provide a bit 55 00:03:15.160 --> 00:03:17.740 of context about why land acknowledgements are so important. 56 00:03:18.540 --> 00:03:21.960 Land acknowledgements are a time for reflection, for giving thanks, and for 57 00:03:22.020 --> 00:03:25.860 recommitting to move forward in partnership with indigenous communities in a spirit 58 00:03:26.120 --> 00:03:29.920 of reconciliation and collaboration to start our time together in a good 59 00:03:29.980 --> 00:03:30.240 way. 60 00:03:31.340 --> 00:03:35.160 Through our indigenous action plan, we identified several areas where Ontario 61 00:03:35.200 --> 00:03:38.860 Teachers' can participate meaningfully in reconciliation and support 62 00:03:38.880 --> 00:03:39.940 Indigenous communities. 63 00:03:40.840 --> 00:03:44.260 One of those areas is the work of our member services team in supporting Indigenous 64 00:03:44.280 --> 00:03:44.820 employers. 65 00:03:45.740 --> 00:03:49.250 Over the past three years, we have proudly welcomed 10 new Indigenous 66 00:03:49.280 --> 00:03:53.200 schools into the Plan, reflecting a growing partnership that's based on 67 00:03:53.260 --> 00:03:53.620 trust. 68 00:03:54.680 --> 00:03:57.790 I have personally heard from many chiefs and council members from First Nations 69 00:03:57.860 --> 00:04:01.520 groups across Ontario that education is the foundation for their future. 70 00:04:02.380 --> 00:04:05.399 We feel honored to play such a meaningful role in that. 71 00:04:06.260 --> 00:04:09.260 On behalf of the Ontario Teachers' Pension Plan, I'd like to respectfully 72 00:04:09.320 --> 00:04:12.220 acknowledge Treaty 13 and the land on which we're meeting today. 73 00:04:13.000 --> 00:04:16.610 For thousands of years, it has been the traditional territory of many nations, 74 00:04:16.640 --> 00:04:20.620 including the Mississaugas of the Credit, the Anishinaabeg, the Chippewa, the 75 00:04:20.661 --> 00:04:22.260 Haudenosaunee, and the Wendat peoples. 76 00:04:24.180 --> 00:04:27.380 We are grateful for the opportunity to work and live on this land. 77 00:04:27.420 --> 00:04:29.640 We respect the treaties that were made here. 78 00:04:29.680 --> 00:04:33.080 We acknowledge the harms and mistakes of the past, and we 79 00:04:33.140 --> 00:04:36.660 recommit to moving forward with community in a spirit of 80 00:04:36.680 --> 00:04:39.000 reconciliation and collaboration. Thank you. 81 00:04:45.240 --> 00:04:45.840 Thank you, Mike. 82 00:04:46.880 --> 00:04:50.180 I would now like to invite Charley Butler, our chief pension officer, to the stage 83 00:04:50.220 --> 00:04:52.140 to provide her remarks. Charley. 84 00:05:04.080 --> 00:05:06.730 Thank you very much, Claire, and good evening, 85 00:05:07.640 --> 00:05:11.020 everybody. Thank you for joining us online and in 86 00:05:11.080 --> 00:05:15.000 person. For those of you in the room, I look forward 87 00:05:15.040 --> 00:05:17.400 to chatting with you later on this evening. 88 00:05:17.460 --> 00:05:21.360 It's such a highlight for me every year to have so many members in one 89 00:05:21.480 --> 00:05:21.940 place. 90 00:05:22.760 --> 00:05:26.720 Moments like this are a really good reminder for what this plan 91 00:05:26.800 --> 00:05:30.360 is built on. In 2025, we marked the 92 00:05:30.380 --> 00:05:34.280 Plan's 35th anniversary, a milestone that we get to 93 00:05:34.300 --> 00:05:37.500 celebrate because of the work you do every day for 94 00:05:37.560 --> 00:05:39.220 students. Thank you. 95 00:05:41.380 --> 00:05:45.320 As stewards of the Plan, we're here to support our members and plan 96 00:05:45.360 --> 00:05:49.040 sponsors. At the heart of that work is one 97 00:05:49.100 --> 00:05:53.060 clear mission: to deliver outstanding service and retirement 98 00:05:53.120 --> 00:05:56.680 security for you, our members. For many of you, 99 00:05:57.140 --> 00:05:59.760 your pension is the biggest financial asset. 100 00:06:00.160 --> 00:06:04.080 So with everything going on in the world, you may be wondering, is 101 00:06:04.140 --> 00:06:08.136 your pension okay?Simply put, no matter 102 00:06:08.176 --> 00:06:11.626 how things change around us, our pension promise holds 103 00:06:11.716 --> 00:06:15.516 strong today and into the future. 104 00:06:15.556 --> 00:06:19.216 Let's talk about what you have as a member because it really is valuable. 105 00:06:19.956 --> 00:06:23.756 With a defined benefit pension, you know exactly what you'll receive in 106 00:06:23.796 --> 00:06:27.216 retirement, unlike an RSP or a defined 107 00:06:27.256 --> 00:06:31.115 contribution plan where outcomes depend on how investments perform. 108 00:06:31.696 --> 00:06:35.276 Think of it this way, with personal savings, your return 109 00:06:35.336 --> 00:06:39.316 depends on interest or investment returns on your own 110 00:06:39.356 --> 00:06:43.276 money. There's no predetermined amount you make, and you bear 111 00:06:43.296 --> 00:06:44.416 the ups and downs. 112 00:06:45.296 --> 00:06:47.826 A defined benefit plan works differently. 113 00:06:47.826 --> 00:06:51.556 Your pension isn't tied to market swings or the fund's value when you 114 00:06:51.596 --> 00:06:53.996 retire. It's based on the years you work, 115 00:06:54.856 --> 00:06:57.776 multiplied by your best five years' average salary. 116 00:06:57.786 --> 00:07:01.306 And because it's supported by a large pool of professionally managed 117 00:07:01.416 --> 00:07:05.296 assets, your basic pension amount is paid regardless 118 00:07:05.336 --> 00:07:07.776 of any gains or losses in that pool. 119 00:07:08.276 --> 00:07:12.196 Since the pool is large and diversified, it can help cushion market 120 00:07:12.276 --> 00:07:15.276 swings. It's built for long-term stability. 121 00:07:16.396 --> 00:07:20.196 We've been fully funded now for 13 consecutive 122 00:07:20.276 --> 00:07:22.596 years. That's not a coincidence. 123 00:07:27.956 --> 00:07:30.136 That's not a coincidence. 124 00:07:31.156 --> 00:07:33.936 That's disciplined long-term management. 125 00:07:34.736 --> 00:07:38.116 That means you can count on a monthly lifetime income 126 00:07:38.616 --> 00:07:42.586 based on what you've earned, regardless of market volatility 127 00:07:42.616 --> 00:07:46.596 or investment returns. It's predictable, and as long as the Plan 128 00:07:46.636 --> 00:07:50.516 remains fully funded, all pension benefits are adjusted for 129 00:07:50.576 --> 00:07:54.206 inflation. That's our pension promise, and we take it very 130 00:07:54.336 --> 00:07:54.916 seriously. 131 00:07:55.996 --> 00:07:59.896 Like I said earlier, the Plan is fully funded for the 13th year in a row 132 00:08:00.316 --> 00:08:03.116 with a strong preliminary funding surplus of 133 00:08:03.126 --> 00:08:05.556 $31.2 billion. 134 00:08:06.456 --> 00:08:09.016 That gives us a strong base for the years ahead. 135 00:08:09.596 --> 00:08:13.216 But what does it mean for you? Well, it means we have what we need 136 00:08:13.256 --> 00:08:17.035 today to pay the pensions we'll owe well into the 137 00:08:17.076 --> 00:08:20.496 future for working members and for retirees. 138 00:08:21.416 --> 00:08:25.166 When we say we're 111% funded, we mean we have 139 00:08:25.166 --> 00:08:26.536 $1.11 140 00:08:27.336 --> 00:08:30.916 in assets for every dollar we owe in pension benefits. 141 00:08:31.336 --> 00:08:34.376 That's a good sign of long-term stability. 142 00:08:35.356 --> 00:08:38.836 If you're a working member, it means your contribution rates remain stable. 143 00:08:39.496 --> 00:08:42.976 If you're retired, your pension is indexed to inflation. 144 00:08:43.036 --> 00:08:46.936 In 2026, your pension got a 2% inflation 145 00:08:47.236 --> 00:08:50.776 increase. And thanks to the Plan's strong funded status, 146 00:08:51.276 --> 00:08:55.096 we've been able to provide 100% inflation protection since 147 00:08:55.296 --> 00:08:55.936 2018. 148 00:08:57.556 --> 00:09:01.436 Today, we're here to listen and learn, but that doesn't just happen at 149 00:09:01.476 --> 00:09:05.016 meetings like this. Members share feedback in many ways. 150 00:09:05.456 --> 00:09:09.416 Whether you're responding to an educational email or you're sharing 151 00:09:09.496 --> 00:09:13.376 feedback after a service interaction, your voice matters to us. 152 00:09:14.136 --> 00:09:17.946 Since 2024, we've also been checking in quarterly through our 153 00:09:18.016 --> 00:09:21.756 member sentiment survey. We want to understand what matters to you 154 00:09:22.196 --> 00:09:25.636 and how priorities can differ across our membership. 155 00:09:26.256 --> 00:09:30.176 This helps us to get you the information you need, and that's why 156 00:09:30.216 --> 00:09:33.355 we asked our members to rank our mission and strategies. 157 00:09:35.196 --> 00:09:38.986 Retirement security is what most of you care about, and that 158 00:09:39.036 --> 00:09:43.006 aligns with our mission to deliver outstanding service and retirement security 159 00:09:43.016 --> 00:09:46.556 for our members. Investment performance comes in second, 160 00:09:47.056 --> 00:09:50.976 followed by educating members and integration of significant 161 00:09:51.076 --> 00:09:54.456 environmental and social risk factors to drive returns. 162 00:09:56.076 --> 00:09:59.866 Before we look at our membership, let's talk about the real impact of the 163 00:09:59.916 --> 00:10:03.756 Plan. As the proud administrator of Canada's largest 164 00:10:03.836 --> 00:10:07.596 single profession pension plan, we paid $8.5 165 00:10:07.636 --> 00:10:10.956 billion in pension benefits in 2025. 166 00:10:12.356 --> 00:10:14.336 Our membership base continues to grow. 167 00:10:14.936 --> 00:10:17.416 We're up 3,000 to 168 00:10:17.616 --> 00:10:19.896 346,000 total members. 169 00:10:20.436 --> 00:10:23.356 186,000 of those are working members and 170 00:10:23.476 --> 00:10:27.395 160,000 pensioners. Welcome to 171 00:10:27.416 --> 00:10:31.236 the almost 8,000 new members who joined the Plan last year. 172 00:10:31.336 --> 00:10:34.456 Just under 5,000 members also retired last 173 00:10:34.476 --> 00:10:38.256 year. You will collect your well-earned lifetime 174 00:10:38.296 --> 00:10:42.256 retirement income on average for about 32 175 00:10:42.596 --> 00:10:43.036 years. 176 00:10:44.076 --> 00:10:46.576 And for some members, it's even longer. 177 00:10:47.076 --> 00:10:50.676 We have 46 pensions in pay for more than 178 00:10:50.956 --> 00:10:51.616 50 years. 179 00:10:52.476 --> 00:10:54.676 Now, that's what we call retirement goals. 180 00:11:01.596 --> 00:11:05.296 Wherever you are in your journey with the Plan, we want to help you get what you 181 00:11:05.336 --> 00:11:09.156 need, when and how you need it. To do that, we're continuing to 182 00:11:09.196 --> 00:11:12.916 invest in our digital-first service model to provide excellent 183 00:11:12.956 --> 00:11:16.926 service at the right cost. This means every dollar we don't 184 00:11:16.996 --> 00:11:20.456 spend on service is a dollar that remains in the Plan. 185 00:11:21.616 --> 00:11:23.536 Members continue to self-serve online. 186 00:11:24.276 --> 00:11:27.776 71% of you have an online account, so most of you have quick 187 00:11:27.956 --> 00:11:30.956 access to your pension information at any time. 188 00:11:31.556 --> 00:11:34.796 If you haven't registered yet, sign up on the website. 189 00:11:34.916 --> 00:11:38.696 It's easy to use, and members of all ages, from their 20s 190 00:11:39.196 --> 00:11:42.976 right through to their 90s, use it regularly. 191 00:11:43.036 --> 00:11:46.516 We have also introduced a new internal virtual assistant. 192 00:11:46.556 --> 00:11:49.996 We call it Clarity, and this helps our teams to support 193 00:11:50.076 --> 00:11:53.456 you faster. It uses secure generative 194 00:11:53.516 --> 00:11:56.916 AI to help staff find the right information quickly. 195 00:11:57.616 --> 00:12:01.156 The result, new staff are educated sooner, and members' 196 00:12:01.256 --> 00:12:03.376 questions are resolved faster. 197 00:12:05.136 --> 00:12:08.676 Last year, we also hosted 20 webinars on pension 198 00:12:08.716 --> 00:12:12.696 essentials for members at every career stage because understanding 199 00:12:12.736 --> 00:12:16.416 your pension matters throughout your career, not just near 200 00:12:16.456 --> 00:12:19.712 retirement.The response has been really incredible. 201 00:12:19.772 --> 00:12:23.512 Over 8,400 members joined us, up from about 202 00:12:23.832 --> 00:12:27.792 5,000 in 2024. It's clearly a convenient way 203 00:12:27.912 --> 00:12:31.552 to get the information you need. Please tell your fellow 204 00:12:31.612 --> 00:12:34.792 teachers to sign up for one of the webinars. 205 00:12:34.852 --> 00:12:37.992 Our commitment to service excellence was rewarded by you once again. 206 00:12:38.732 --> 00:12:42.372 We received a strong quality service index score, our primary 207 00:12:42.472 --> 00:12:44.332 performance measure of member experience. 208 00:12:44.912 --> 00:12:48.562 Last year, 93% of members were satisfied 209 00:12:48.812 --> 00:12:52.392 with our service, and 46% gave us a 210 00:12:52.452 --> 00:12:55.732 perfect score. Thank you for your high marks. 211 00:12:56.952 --> 00:13:00.212 Before I pass it to Jo and Steve, I'll close with this. 212 00:13:00.972 --> 00:13:04.902 Our mission is to show up for members with great service and 213 00:13:04.932 --> 00:13:08.852 long-term retirement security. Our sentiment survey tells us 214 00:13:08.912 --> 00:13:12.792 that many working members, especially those who aren't as familiar with the plan, 215 00:13:13.252 --> 00:13:16.672 are feeling less financially secure right now given the 216 00:13:16.732 --> 00:13:20.472 cost of living pressures and global uncertainty. 217 00:13:21.592 --> 00:13:25.132 On the other hand, retired members say their pension, 218 00:13:25.432 --> 00:13:29.212 including inflation protection, are the key reasons they feel 219 00:13:29.292 --> 00:13:33.192 steady. Hearing both perspectives and seeing the work behind the 220 00:13:33.252 --> 00:13:37.242 scenes across the whole organization has only strengthened my 221 00:13:37.312 --> 00:13:41.182 personal confidence in our team's ability to deliver on the pension 222 00:13:41.272 --> 00:13:45.132 promise. We'll keep doing the work so that you can count on the 223 00:13:45.172 --> 00:13:49.122 lifetime income you've earned and the peace of mind that comes 224 00:13:49.172 --> 00:13:49.492 with it. 225 00:13:50.612 --> 00:13:53.772 As always, we're here to help, so visit our website for more 226 00:13:53.812 --> 00:13:57.752 information. Tonight, though, you can chat with the member services team. 227 00:13:58.202 --> 00:14:02.192 You can look for our red lanyards. If you have questions about your particular 228 00:14:02.272 --> 00:14:04.492 benefits, stop by the member lounge. 229 00:14:05.412 --> 00:14:08.892 Thank you again for your continued trust and confidence in us. 230 00:14:09.632 --> 00:14:13.572 Now, we'd just like to play a video featuring our former and current CEOs 231 00:14:14.092 --> 00:14:17.332 and senior leaders reflecting on the teachers who made a lasting 232 00:14:17.432 --> 00:14:18.872 impact on their lives. 233 00:14:22.012 --> 00:14:24.872 234 00:14:25.932 --> 00:14:26.351 235 00:14:27.232 --> 00:14:30.832 236 00:14:31.032 --> 00:14:32.352 237 00:14:32.652 --> 00:14:35.852 238 00:14:36.172 --> 00:14:38.032 239 00:14:38.932 --> 00:14:41.812 240 00:14:41.952 --> 00:14:44.012 241 00:14:44.072 --> 00:14:47.972 242 00:14:48.012 --> 00:14:51.952 243 00:14:52.012 --> 00:14:53.432 244 00:14:53.792 --> 00:14:55.412 245 00:14:56.412 --> 00:14:59.972 246 00:15:00.132 --> 00:15:02.092 247 00:15:02.272 --> 00:15:03.732 248 00:15:04.532 --> 00:15:08.492 249 00:15:08.652 --> 00:15:11.672 250 00:15:12.552 --> 00:15:16.312 251 00:15:16.392 --> 00:15:19.772 252 00:15:20.132 --> 00:15:23.812 253 00:15:24.612 --> 00:15:25.531 254 00:15:26.332 --> 00:15:30.292 255 00:15:30.312 --> 00:15:34.202 256 00:15:34.252 --> 00:15:35.472 257 00:15:36.092 --> 00:15:37.712 258 00:15:38.352 --> 00:15:41.892 259 00:15:41.932 --> 00:15:45.781 260 00:15:45.812 --> 00:15:48.832 261 00:15:49.462 --> 00:15:53.272 262 00:15:53.332 --> 00:15:55.692 263 00:15:55.852 --> 00:15:56.532 264 00:15:57.932 --> 00:16:01.872 265 00:16:01.892 --> 00:16:05.752 266 00:16:05.812 --> 00:16:09.372 267 00:16:09.432 --> 00:16:12.882 268 00:16:12.892 --> 00:16:16.072 269 00:16:17.561 --> 00:16:21.302 270 00:16:21.332 --> 00:16:23.692 271 00:16:23.932 --> 00:16:26.612 272 00:16:26.872 --> 00:16:30.312 273 00:16:30.572 --> 00:16:34.432 274 00:16:34.471 --> 00:16:38.332 275 00:16:38.372 --> 00:16:41.252 276 00:16:41.472 --> 00:16:43.032 277 00:16:45.072 --> 00:16:48.212 278 00:16:48.452 --> 00:16:51.592 279 00:17:01.592 --> 00:17:05.292 Thank you. Thank you very much. Now, I'd like to invite our president and 280 00:17:05.353 --> 00:17:08.392 CEO, Jo Taylor, to deliver his remarks. 281 00:17:09.072 --> 00:17:09.551 Over to Jo. 282 00:17:18.792 --> 00:17:19.732 Well, thank you, Charley. 283 00:17:20.593 --> 00:17:24.472 I can promise you Jonathan doesn't feel complacent anymore as part of the senior 284 00:17:24.572 --> 00:17:25.072 team here. 285 00:17:26.613 --> 00:17:29.612 From my point of view, let me just say it's a pleasure to be with you all today. 286 00:17:30.312 --> 00:17:34.252 Thank you for taking the time to be with us, whether you're joining in person or 287 00:17:34.332 --> 00:17:36.452 watching today virtually. 288 00:17:37.852 --> 00:17:40.952 Let me just reinforce some of those messages you saw in that video. 289 00:17:41.572 --> 00:17:45.332 Everybody in the fund has a huge amount of respect 290 00:17:45.852 --> 00:17:49.772 for the teaching profession, but also the impact that you all have on 291 00:17:49.792 --> 00:17:50.592 your students. 292 00:17:52.192 --> 00:17:55.472 So what am I going to talk about today? I have three topics for you. 293 00:17:55.672 --> 00:17:59.652 Firstly, a brief review of our performance in 2025 294 00:18:00.712 --> 00:18:04.552 to bring out some of the key transactions and highlights, and 295 00:18:04.592 --> 00:18:08.272 then also to talk to some of the themes that might be top of mind for all of 296 00:18:08.392 --> 00:18:11.612 you, which came out of the pre-meeting survey. 297 00:18:13.652 --> 00:18:17.222 So where are we today? Well, as you've probably all seen, we definitely are 298 00:18:17.292 --> 00:18:19.152 operating in a really complex 299 00:18:19.192 --> 00:18:22.728 environment.Global conflicts have heightened the 300 00:18:22.828 --> 00:18:24.328 geopolitical tensions, 301 00:18:25.168 --> 00:18:28.688 but also trade relationships are being strained, and we're 302 00:18:28.748 --> 00:18:32.688 navigating volatility with our closest geographic 303 00:18:32.988 --> 00:18:36.568 and economic partner. Back to 2025, 304 00:18:36.968 --> 00:18:40.648 we delivered a 6.7% return, which 305 00:18:40.708 --> 00:18:44.348 involved earning $18 billion in investment income. 306 00:18:45.428 --> 00:18:49.318 Now, this is a positive outcome for the fund and was slightly ahead of our 307 00:18:49.448 --> 00:18:52.928 normal target of around a 4% real return. 308 00:18:53.988 --> 00:18:55.468 So what drove that performance? 309 00:18:56.788 --> 00:19:00.628 Well, commodities particularly were very helpful for 310 00:19:00.708 --> 00:19:01.368 us, delivering 311 00:19:01.648 --> 00:19:05.548 27%, driven 312 00:19:05.608 --> 00:19:09.108 by active decisions we made, particularly around 313 00:19:09.148 --> 00:19:09.648 gold. 314 00:19:11.828 --> 00:19:15.588 One of our asset classes, the venture growth team, had another 315 00:19:15.688 --> 00:19:18.708 really strong year, returning 30%. 316 00:19:20.168 --> 00:19:23.848 And it was also a good year for public equity markets, which 317 00:19:23.888 --> 00:19:25.818 contributed a return of 15%. 318 00:19:27.628 --> 00:19:31.388 So with all that put together, as you can see on the slide, we've now grown our 319 00:19:31.448 --> 00:19:35.408 assets to $279.4 billion. 320 00:19:37.368 --> 00:19:41.148 Now, having said all of that, we did fall short in some areas, 321 00:19:41.808 --> 00:19:44.168 and we do know that there's room for improvement. 322 00:19:45.428 --> 00:19:49.128 This year, again, we trailed our public benchmarks by 323 00:19:49.448 --> 00:19:50.068 5%. 324 00:19:51.608 --> 00:19:55.488 Within our portfolio of actively managed companies, private 325 00:19:55.548 --> 00:19:58.908 equity and real estate were challenged that year, 326 00:19:59.768 --> 00:20:02.488 aligned with the experience of many of our peers. 327 00:20:04.268 --> 00:20:08.128 Singling out private equity, that team is confronting a 328 00:20:08.188 --> 00:20:11.508 less liquid market, high levels of competition, 329 00:20:12.248 --> 00:20:15.938 but also high cost of debt and valuation 330 00:20:16.028 --> 00:20:16.548 pressures. 331 00:20:18.308 --> 00:20:21.848 In the case of real estate, the picture has been slowly 332 00:20:21.888 --> 00:20:25.808 improving as we've seen shoppers go back to malls 333 00:20:25.868 --> 00:20:27.738 and workers return to offices 334 00:20:28.548 --> 00:20:30.568 in larger numbers post the pandemic. 335 00:20:33.048 --> 00:20:37.028 But unfortunately in our case, the recent bankruptcy of the Hudson 336 00:20:37.088 --> 00:20:41.057 Bay Company, which was a significant anchor tenant in 337 00:20:41.108 --> 00:20:44.948 many of the malls operated by Cadillac Fairview, negatively 338 00:20:44.968 --> 00:20:47.688 impacted our performance in 2025. 339 00:20:49.188 --> 00:20:52.448 So a key focus for 2026 340 00:20:53.308 --> 00:20:57.208 will be stronger returns across all of our active programs. 341 00:20:58.928 --> 00:21:02.408 And to do that, we have a number of new leaders in place 342 00:21:03.108 --> 00:21:06.428 who are adjusting our investment strategies proactively. 343 00:21:08.428 --> 00:21:12.288 But we're going to continue to look for opportunities across more focused 344 00:21:12.348 --> 00:21:16.208 sectors that we've chosen, but only where we believe our 345 00:21:16.268 --> 00:21:19.248 teams have a true competitive advantage. 346 00:21:20.828 --> 00:21:24.148 And our teams are going to be putting a very strong emphasis also on value 347 00:21:24.268 --> 00:21:27.748 creation, which will allow us to accelerate the growth 348 00:21:28.588 --> 00:21:30.188 at portfolio company level. 349 00:21:31.568 --> 00:21:32.228 Technology. 350 00:21:33.368 --> 00:21:34.988 You've all heard a lot about AI. 351 00:21:36.088 --> 00:21:39.228 We're actually having a number of technology-driven 352 00:21:39.308 --> 00:21:42.897 enhancements which we feel can actually support our 353 00:21:42.948 --> 00:21:46.528 workforce productivity, but also allow us to have a 354 00:21:46.548 --> 00:21:49.128 competitive edge in our portfolio companies. 355 00:21:50.788 --> 00:21:54.548 Within teachers ourselves, we're looking to see how we can put 356 00:21:54.628 --> 00:21:58.248 AI to use in a way that strengthens our decision 357 00:21:58.308 --> 00:22:02.008 making, but also frees up time so that people can 358 00:22:02.048 --> 00:22:05.328 also look at higher value areas of work. 359 00:22:07.148 --> 00:22:09.648 And we've also been investing in some AI companies 360 00:22:10.648 --> 00:22:13.848 in 2025, one of which you probably have heard of, Anthropic, 361 00:22:14.768 --> 00:22:17.348 the company behind the AI assistant Claude. 362 00:22:18.628 --> 00:22:18.918 And 363 00:22:19.748 --> 00:22:23.728 as well as investing, it's important in our business to actually return capital 364 00:22:23.828 --> 00:22:27.438 to the plan. And we did sell a number of important and 365 00:22:27.548 --> 00:22:30.388 strategic assets in the fund last year. 366 00:22:31.468 --> 00:22:35.448 One example would be after two decades of ownership, we 367 00:22:35.528 --> 00:22:39.348 sold a portfolio of five airports in Europe on really good 368 00:22:39.428 --> 00:22:39.908 terms. 369 00:22:41.228 --> 00:22:44.968 Also in India, we sold our majority position in Sahyadri 370 00:22:45.008 --> 00:22:48.548 Hospitals, which is one of the larger hospitals in India. 371 00:22:51.328 --> 00:22:55.128 Now, when I come to top of mind for members, I wanted to 372 00:22:55.188 --> 00:22:58.608 deal with three topics which came out of the pre-survey. 373 00:22:59.528 --> 00:23:01.248 One is about investing in Canada, 374 00:23:02.148 --> 00:23:03.548 second is about defense, 375 00:23:04.528 --> 00:23:07.228 and third is about climate strategy. 376 00:23:09.548 --> 00:23:11.308 So what about investing in Canada? 377 00:23:12.448 --> 00:23:16.308 Well, the first thing to say is it is absolutely one of our focus markets. 378 00:23:16.988 --> 00:23:20.928 As you can see on the slide, we have a high allocation to Canada, and we did at 379 00:23:20.968 --> 00:23:24.668 the end of 2025, representing some 31% of the 380 00:23:24.708 --> 00:23:25.788 assets in the plan. 381 00:23:27.068 --> 00:23:28.908 And we continue to invest in Canada. 382 00:23:29.708 --> 00:23:32.688 Towards the end of 2025, we invested in Toronto-based 383 00:23:33.048 --> 00:23:36.248 StackAdapt, which is a multi-channel advertising 384 00:23:36.348 --> 00:23:38.388 platform through our TVG team. 385 00:23:39.268 --> 00:23:42.948 And we do remain keen to look at new opportunities here in Canada. 386 00:23:44.988 --> 00:23:48.628 And one of the ways we're probably going to do that is to continue very 387 00:23:48.668 --> 00:23:52.548 encouraging and constructive conversations we've been having with both 388 00:23:52.568 --> 00:23:56.148 the federal and provincial governments to discuss commercially 389 00:23:56.188 --> 00:23:59.928 attractive nation-building projects. 390 00:23:59.948 --> 00:24:03.928 But one thing I would stress is that for all of those projects, 391 00:24:04.008 --> 00:24:07.948 we apply the same investment criteria as we do to any other sector or any 392 00:24:07.988 --> 00:24:11.668 other geography to make sure it'll always provide the 393 00:24:11.688 --> 00:24:15.148 returns that we want for the plan, and also make sure those 394 00:24:15.188 --> 00:24:18.828 investments are of the right type and scale as they become 395 00:24:18.868 --> 00:24:22.384 available.So 396 00:24:22.464 --> 00:24:23.004 defence, 397 00:24:24.264 --> 00:24:25.944 the topic of today as you've heard. 398 00:24:28.124 --> 00:24:32.024 It is an important theme to cover, and I don't want to be flippant about 399 00:24:32.094 --> 00:24:35.644 it. It has been raised by members, and it's been raised both in a 400 00:24:35.704 --> 00:24:38.583 positive and a questioning perspective. 401 00:24:39.684 --> 00:24:43.404 And in this increasingly volatile geopolitical environment, 402 00:24:44.134 --> 00:24:45.484 defence is a real issue, 403 00:24:46.324 --> 00:24:50.044 both for governments globally, but also for our own government here in 404 00:24:50.104 --> 00:24:50.564 Canada. 405 00:24:52.864 --> 00:24:55.264 So looking at today, if you want to look at the facts, 406 00:24:56.164 --> 00:24:59.644 our exposure to defence businesses is relatively low. 407 00:24:59.784 --> 00:25:02.344 It's less than 1% of the fund. 408 00:25:04.104 --> 00:25:08.034 And that's fairly broadly split between direct investments and 409 00:25:08.084 --> 00:25:11.433 investments that come from us investing passively in 410 00:25:11.504 --> 00:25:13.204 indices in listed markets. 411 00:25:15.444 --> 00:25:19.374 We also think that the defence sector more broadly is 412 00:25:19.384 --> 00:25:22.584 becoming more investable for some reasons. 413 00:25:23.784 --> 00:25:25.264 Firstly, we're being asked to do it. 414 00:25:25.824 --> 00:25:29.804 Being asked to do it by our local government here to help them 415 00:25:29.884 --> 00:25:33.484 to build national security and the defence of Canada. 416 00:25:36.144 --> 00:25:40.084 Secondly, it's been a successful sector, generating 417 00:25:40.224 --> 00:25:43.964 high returns for those who've been investing in it, and it aligns 418 00:25:44.044 --> 00:25:47.484 therefore with our desire to make sure we deliver the returns for you 419 00:25:48.024 --> 00:25:49.164 as part of the plan. 420 00:25:50.804 --> 00:25:54.284 But we also would always say we're very careful and thoughtful in our 421 00:25:54.324 --> 00:25:54.884 approach 422 00:25:55.944 --> 00:25:57.764 for defence and any other sector, 423 00:25:58.604 --> 00:26:02.004 and we require any company we invest in to meet a very 424 00:26:02.084 --> 00:26:04.163 robust screening process. 425 00:26:07.124 --> 00:26:10.964 So another longstanding topic of conversation for ourselves and 426 00:26:11.004 --> 00:26:13.824 with all of you has been our approach to climate. 427 00:26:15.884 --> 00:26:19.284 Over the last few years, I would say we've made very strong progress against the 428 00:26:19.324 --> 00:26:22.024 commitments we set up from a baseline in 429 00:26:22.104 --> 00:26:26.004 2019. And just to remind you, that was to 430 00:26:26.064 --> 00:26:29.904 actually reduce our carbon intensity emissions by some 45% 431 00:26:30.523 --> 00:26:33.744 by 2025, and we achieved a 50% 432 00:26:33.784 --> 00:26:36.524 reduction a year ahead of that target. 433 00:26:38.664 --> 00:26:39.824 Thank you. 434 00:26:44.924 --> 00:26:47.964 And what that's allowed us to do is actually think again about our 435 00:26:48.024 --> 00:26:51.794 approach to make sure we're always having a very direct and 436 00:26:51.864 --> 00:26:53.163 tangible impact. 437 00:26:55.324 --> 00:26:59.054 And you would probably have heard from us towards the end of last year, we launched 438 00:26:59.124 --> 00:27:02.864 a new climate strategy for the years of 2026 to 439 00:27:02.924 --> 00:27:03.834 2030, 440 00:27:05.044 --> 00:27:08.844 focusing on a $70 billion target for climate 441 00:27:09.024 --> 00:27:11.044 transition-aligned assets. 442 00:27:12.284 --> 00:27:15.464 So what are the two core pillars of that plan or that strategy? 443 00:27:16.564 --> 00:27:17.364 Well, first, 444 00:27:18.224 --> 00:27:21.813 we want to invest in companies that enable global energy 445 00:27:21.884 --> 00:27:25.224 transition, what we would call climate solutions. 446 00:27:26.484 --> 00:27:30.124 So examples of this would be renewable energy companies or 447 00:27:30.264 --> 00:27:31.804 companies in energy storage. 448 00:27:33.564 --> 00:27:36.764 Second, we'll invest in companies that accelerate 449 00:27:37.464 --> 00:27:39.324 credible transition planning. 450 00:27:41.084 --> 00:27:44.984 So what does that mean? Here, we work proactively with 451 00:27:45.024 --> 00:27:48.904 our portfolio companies to help them decarbonize, but also with companies 452 00:27:48.924 --> 00:27:52.484 that will also help them decarbonize because of the strategies they can share. 453 00:27:53.784 --> 00:27:57.684 And what we want to do is to do it in a way that strengthens long-term 454 00:27:57.804 --> 00:28:01.364 value while preparing them for changing energy 455 00:28:01.464 --> 00:28:02.374 utilization. 456 00:28:04.904 --> 00:28:08.674 And we're going to disclose our progress against these new targets 457 00:28:08.724 --> 00:28:12.504 next year when hopefully we can all get together, but also in our 458 00:28:12.564 --> 00:28:13.484 annual report 459 00:28:14.284 --> 00:28:16.264 when we publish that just before. 460 00:28:19.404 --> 00:28:21.824 So that's broadly it from me. 461 00:28:23.064 --> 00:28:26.184 Thank you for welcoming me back to the stage. I appreciate the encouragement. 462 00:28:28.824 --> 00:28:29.884 Let me also say, 463 00:28:30.764 --> 00:28:33.924 I'm about to hand over Steve McGirr, who's our board chair. 464 00:28:34.944 --> 00:28:38.724 But before I share a short video with you, what I would like to 465 00:28:38.784 --> 00:28:39.374 say is, 466 00:28:40.424 --> 00:28:43.104 I think this is Steve's last annual meeting. 467 00:28:44.324 --> 00:28:47.904 He's been a fantastic chair for all of you as chair of the board 468 00:28:48.444 --> 00:28:50.864 and a huge support for me as your CEO. 469 00:28:51.624 --> 00:28:53.384 So please give him a round of applause. 470 00:29:00.784 --> 00:29:34.974 471 00:29:35.024 --> 00:29:38.524 472 00:29:39.464 --> 00:29:43.124 473 00:29:43.544 --> 00:29:47.124 474 00:29:47.184 --> 00:29:50.284 475 00:29:50.344 --> 00:29:54.194 476 00:29:54.524 --> 00:29:56.664 477 00:29:57.104 --> 00:29:59.904 478 00:29:59.924 --> 00:30:03.854 479 00:30:03.884 --> 00:30:07.564 480 00:30:07.604 --> 00:30:11.284 481 00:30:11.304 --> 00:30:15.284 482 00:30:15.444 --> 00:30:17.964 483 00:30:18.384 --> 00:30:21.684 484 00:30:21.764 --> 00:30:25.404 485 00:30:25.484 --> 00:30:26.934 486 00:30:27.264 --> 00:30:30.764 487 00:30:30.844 --> 00:30:34.424 488 00:30:34.484 --> 00:30:38.124 489 00:30:38.224 --> 00:30:41.564 490 00:30:41.624 --> 00:30:45.424 491 00:30:45.484 --> 00:30:48.484 492 00:30:48.664 --> 00:30:52.484 493 00:30:52.524 --> 00:30:56.264 494 00:30:56.324 --> 00:31:00.064 495 00:31:00.104 --> 00:31:01.523 496 00:31:01.914 --> 00:31:05.714 497 00:31:05.774 --> 00:31:09.264 498 00:31:09.734 --> 00:31:12.574 499 00:31:13.714 --> 00:31:17.454 500 00:31:17.554 --> 00:31:18.714 501 00:31:18.834 --> 00:31:22.604 502 00:31:22.654 --> 00:31:25.814 503 00:31:26.014 --> 00:31:29.584 504 00:31:29.754 --> 00:31:33.154 505 00:31:33.214 --> 00:31:36.423 506 00:31:36.534 --> 00:31:39.634 507 00:31:40.094 --> 00:31:43.644 508 00:31:43.714 --> 00:31:47.134 509 00:31:47.194 --> 00:31:50.974 510 00:31:51.034 --> 00:31:52.154 511 00:31:52.434 --> 00:31:55.414 512 00:31:55.734 --> 00:31:58.894 513 00:31:58.934 --> 00:31:59.434 514 00:31:59.574 --> 00:32:03.264 515 00:32:03.334 --> 00:32:07.254 516 00:32:07.454 --> 00:32:11.244 517 00:32:11.294 --> 00:32:15.274 518 00:32:15.334 --> 00:32:19.254 519 00:32:19.294 --> 00:32:21.294 520 00:32:21.334 --> 00:32:25.154 521 00:32:25.174 --> 00:32:26.914 522 00:32:27.084 --> 00:32:30.234 523 00:32:30.244 --> 00:32:33.104 524 00:32:33.114 --> 00:32:36.904 525 00:32:36.974 --> 00:32:40.534 526 00:32:40.594 --> 00:32:44.224 527 00:32:44.254 --> 00:32:47.774 528 00:32:47.794 --> 00:32:49.564 529 00:32:49.914 --> 00:32:52.114 530 00:32:52.214 --> 00:32:55.234 531 00:32:55.274 --> 00:32:59.054 532 00:32:59.254 --> 00:33:02.574 533 00:33:02.594 --> 00:33:03.974 534 00:33:17.274 --> 00:33:21.074 So let me just close by saying, from the beginning, we 535 00:33:21.134 --> 00:33:24.654 have and we continue to have steadfast commitment 536 00:33:25.234 --> 00:33:27.934 to supporting your retirement security. 537 00:33:28.334 --> 00:33:30.934 So with that, please welcome Steve to the stage. 538 00:33:39.374 --> 00:33:43.274 Well, thank you, Jo. I guess I don't need to say that my name is Steve McGirr. 539 00:33:45.054 --> 00:33:48.603 Thank you for that recognition. I especially appreciated a number of the Board of 540 00:33:48.694 --> 00:33:51.474 Governors of the OTF standing in appreciation. 541 00:33:51.494 --> 00:33:53.154 Thank you. 542 00:33:54.454 --> 00:33:58.274 I'm honored to be here with you today as the chair of the Ontario 543 00:33:58.354 --> 00:33:59.334 Teachers' Pension Board. 544 00:34:00.414 --> 00:34:01.154 Before I begin, 545 00:34:03.294 --> 00:34:06.103 I'd like to thank all of you for your commitment to this profession 546 00:34:06.954 --> 00:34:10.054 and to furthering the education of students in this province. 547 00:34:10.754 --> 00:34:14.614 In the video that Charley showed, you heard about the impact that you have 548 00:34:14.654 --> 00:34:15.254 on students. 549 00:34:17.194 --> 00:34:21.094 Given that we're sharing memories here of teachers, I'd like to take a 550 00:34:21.134 --> 00:34:25.074 minute to share a story about a teacher that positively impacted me as well. 551 00:34:25.975 --> 00:34:29.594 My late mother was an elementary school teacher in Ottawa 552 00:34:30.374 --> 00:34:31.854 and a member of this plan. 553 00:34:32.854 --> 00:34:36.404 She taught me that education was the key to success, 554 00:34:37.495 --> 00:34:41.234 and she was very proud that I was serving teachers on this board. 555 00:34:42.415 --> 00:34:44.284 She actually faithfully attended 556 00:34:45.354 --> 00:34:46.814 many of these meetings virtually, 557 00:34:47.694 --> 00:34:48.594 and true story, 558 00:34:49.435 --> 00:34:52.935 she texted me in the middle of my remarks to comment on my 559 00:34:53.054 --> 00:34:55.354 tie or my diction- ... which is 560 00:34:56.774 --> 00:35:00.193 incredibly distracting. But thanks, Mom. 561 00:35:02.974 --> 00:35:06.784 So despite having to navigate in an environment of uncertainty and 562 00:35:06.834 --> 00:35:10.734 increasing complexity, the plan did generate a 563 00:35:10.774 --> 00:35:11.654 positive return. 564 00:35:12.554 --> 00:35:13.454 A core measure 565 00:35:14.554 --> 00:35:17.834 is the ability to deliver consistently over decades, 566 00:35:18.793 --> 00:35:22.574 35 years, specifically as a milestone in 2025. 567 00:35:23.853 --> 00:35:27.614 And over that time, the plan has generated an average annualized return of 568 00:35:28.034 --> 00:35:29.554 9.2%. 569 00:35:30.434 --> 00:35:31.334 And we've come a long way. 570 00:35:32.654 --> 00:35:35.134 In 1990, as you heard from Bob Bertram, 571 00:35:36.134 --> 00:35:39.144 the net assets were sitting about $16 billion, and 572 00:35:39.274 --> 00:35:43.014 primarily in non-marketable Ontario bonds. 573 00:35:44.094 --> 00:35:46.594 The assets that the plan had could not easily be sold. 574 00:35:47.504 --> 00:35:48.394 They were low risk, 575 00:35:49.334 --> 00:35:51.014 but they also delivered a low return. 576 00:35:53.234 --> 00:35:56.974 It was when the plan started to diversify towards private investments and to 577 00:35:57.014 --> 00:35:58.694 explore other geographies, 578 00:35:59.774 --> 00:36:02.904 that we started to shape a new, now widely emulated, 579 00:36:04.014 --> 00:36:06.614 way of pension investing to deliver stronger returns. 580 00:36:07.654 --> 00:36:08.734 By 1997, 581 00:36:09.794 --> 00:36:11.414 the assets surpassed $50 billion. 582 00:36:12.834 --> 00:36:15.274 Ten years later, surpassed $100 billion. 583 00:36:15.974 --> 00:36:16.534 And today, 584 00:36:17.694 --> 00:36:21.114 the plan's assets now are close to $280 billion. 585 00:36:23.154 --> 00:36:24.754 So how is this generated? 586 00:36:26.054 --> 00:36:26.754 20% 587 00:36:29.114 --> 00:36:32.354 is generated from contributions from our members, you, 588 00:36:33.294 --> 00:36:34.974 and our plan sponsor, the employer. 589 00:36:36.454 --> 00:36:37.584 The other 80%, 590 00:36:38.834 --> 00:36:39.494 80% 591 00:36:40.734 --> 00:36:42.074 is driven by investment returns. 592 00:36:44.894 --> 00:36:48.594 That means that for every $1,000 that's paid out, 593 00:36:49.594 --> 00:36:50.974 $800 of that 594 00:36:51.794 --> 00:36:54.234 is generated by the plan's long-term investment returns. 595 00:36:57.554 --> 00:37:00.934 The plan has remained fully funded for the 13th consecutive year, 596 00:37:02.234 --> 00:37:05.554 and this strong preliminary surplus provides a solid 597 00:37:05.594 --> 00:37:09.114 position to operate in today's very 598 00:37:09.154 --> 00:37:12.734 challenging environment.So turning to 599 00:37:12.784 --> 00:37:13.174 today, 600 00:37:15.384 --> 00:37:19.164 the plan has strengths to leverage amid a more complex environment 601 00:37:20.664 --> 00:37:24.604 like we saw in 2025 and continues today as 602 00:37:24.644 --> 00:37:25.284 the new norm. 603 00:37:26.984 --> 00:37:30.904 We recognize that persistent market turbulence is on the minds of a lot of 604 00:37:30.944 --> 00:37:31.684 people in the room. 605 00:37:32.914 --> 00:37:36.884 The management team and the board are keenly aware of your 606 00:37:36.964 --> 00:37:37.504 concern. 607 00:37:41.104 --> 00:37:44.984 Across 2025 and in the early parts of 2026, the 608 00:37:45.024 --> 00:37:48.544 economic backdrop has been shaped by persistent 609 00:37:48.604 --> 00:37:49.764 geopolitical tensions, 610 00:37:50.904 --> 00:37:52.124 economic realignments, 611 00:37:53.104 --> 00:37:56.523 structural shifts in trade, energy, and technology. 612 00:37:58.344 --> 00:38:02.224 And the conflict in Iran is exacerbating these shifts while 613 00:38:02.264 --> 00:38:03.604 pushing the price of energy higher. 614 00:38:05.204 --> 00:38:08.784 Our global trade partnerships and security alliances have become more strained, 615 00:38:09.924 --> 00:38:13.204 including, sadly, here in Canada with our US neighbor. 616 00:38:15.364 --> 00:38:15.884 And as well, 617 00:38:17.124 --> 00:38:19.744 interest rates and financing conditions remain uncertain. 618 00:38:20.744 --> 00:38:23.084 The prospects for growth differ sharply 619 00:38:23.944 --> 00:38:25.464 by regions across the globe. 620 00:38:26.804 --> 00:38:30.364 And in the exact moment where we should benefit from global cooperation, 621 00:38:31.844 --> 00:38:35.344 we find ourselves confronting dislocation and 622 00:38:35.404 --> 00:38:35.944 conflict. 623 00:38:37.564 --> 00:38:41.024 And we acknowledge that this volatility and uncertainty are unlikely to 624 00:38:41.084 --> 00:38:41.944 subside soon. 625 00:38:43.564 --> 00:38:45.223 We are, however, prepared. 626 00:38:47.824 --> 00:38:51.784 We will continue to take a proactive approach as the plan assesses the 627 00:38:51.864 --> 00:38:55.264 impact that any shifts and broader trends on the fund 628 00:38:55.924 --> 00:38:57.704 and individual portfolio companies. 629 00:38:58.764 --> 00:39:02.744 As stewards of the plan, we also look to manage, and we have to look 630 00:39:02.844 --> 00:39:04.384 beyond the short-term volatility. 631 00:39:06.184 --> 00:39:10.124 We do this with an eye on the future and ensuring that the plan is positioned to 632 00:39:10.144 --> 00:39:11.564 support all of our members 633 00:39:13.224 --> 00:39:14.684 in achieving retirement security. 634 00:39:17.484 --> 00:39:21.404 An independent and qualified board has been in the 635 00:39:21.443 --> 00:39:25.424 past and remains a defining differentiator of the plan. 636 00:39:26.744 --> 00:39:30.644 It supports stability through market cycles and external shocks, 637 00:39:31.764 --> 00:39:35.704 enabling the organization to respond with discipline, with sound judgment, 638 00:39:36.404 --> 00:39:37.744 and a long-term perspective. 639 00:39:39.264 --> 00:39:42.424 We expect that the governance structure that has safeguarded the plan through the 640 00:39:42.464 --> 00:39:43.394 past disruptions 641 00:39:44.264 --> 00:39:46.724 will continue to anchor it through the next era. 642 00:39:49.324 --> 00:39:53.164 And we will continue to actively guide while keeping the best interests of 643 00:39:53.204 --> 00:39:55.564 members at the core of our decision-making. 644 00:39:56.844 --> 00:39:59.744 Now I'd like to take a moment to update on some key changes at the board. 645 00:40:00.924 --> 00:40:01.604 Gene Lewis, 646 00:40:03.784 --> 00:40:06.854 an educator, concluded an eight-year term at the end of 647 00:40:06.964 --> 00:40:10.194 2025. I'd like to thank him for his meaningful 648 00:40:10.224 --> 00:40:13.884 contributions and his dedicated service to the plan and to you. 649 00:40:15.064 --> 00:40:18.994 I also extend my thanks to Patti Croft, who returned to the 650 00:40:19.064 --> 00:40:22.684 board in an interim capacity during the year following nine years of 651 00:40:22.724 --> 00:40:23.484 previous service, 652 00:40:24.584 --> 00:40:26.744 and my sincere appreciation to Cindy Forbes 653 00:40:27.764 --> 00:40:30.884 as well for her leadership and invaluable service as a board member. 654 00:40:32.804 --> 00:40:35.824 Lastly, Tim Hodgin resigned from the board in March 655 00:40:35.924 --> 00:40:39.904 2025 because of his decision to run as a candidate in 656 00:40:39.964 --> 00:40:41.184 the last federal election. 657 00:40:42.104 --> 00:40:45.344 Tim was an engaging and impactful board member since joining in 658 00:40:45.484 --> 00:40:46.394 2023, 659 00:40:47.244 --> 00:40:49.184 and my sincere thanks for his board service. 660 00:40:50.744 --> 00:40:51.164 We're pleased to 661 00:40:52.564 --> 00:40:56.114 welcome two new board members. Chris Goodsir joined the board in January of this 662 00:40:56.144 --> 00:40:56.254 year. 663 00:40:57.384 --> 00:41:01.224 Chris has held the role of General Secretary at the OSSTF 664 00:41:01.264 --> 00:41:05.104 for several years. He has represented OSSTF on numerous 665 00:41:05.124 --> 00:41:08.304 committees, including pension-related roles. So welcome, Chris. 666 00:41:09.864 --> 00:41:10.144 The board 667 00:41:16.444 --> 00:41:20.164 also welcomed Bill Butt earlier this year, an OTF appointee. 668 00:41:20.584 --> 00:41:23.584 Bill has over 20 years of leadership experience in financial 669 00:41:23.684 --> 00:41:27.304 services. He also has more than a decade of board experience 670 00:41:27.404 --> 00:41:30.984 spanning financial services, telecommunications, and pensions, 671 00:41:31.504 --> 00:41:34.224 having served on the board of another major Canadian pension plan. 672 00:41:34.504 --> 00:41:35.223 So welcome, Bill. 673 00:41:41.084 --> 00:41:44.764 The full board is currently up on the screen. 674 00:41:45.184 --> 00:41:48.284 Many board members are here in the room with us this evening. 675 00:41:48.704 --> 00:41:51.044 The board will be at the reception following the meeting. 676 00:41:51.864 --> 00:41:54.124 But I want to thank the board for everything that they've done this year. 677 00:42:01.504 --> 00:42:04.774 And they all look forward to speaking with you informally at the reception. 678 00:42:06.164 --> 00:42:10.124 I'd also like to express my gratitude towards our sponsors, the province of Ontario 679 00:42:10.984 --> 00:42:12.454 and the Ontario Teachers' Federation. 680 00:42:13.844 --> 00:42:16.584 Our sponsors share our commitment to board renewal 681 00:42:17.524 --> 00:42:19.904 and to board member independence. 682 00:42:20.644 --> 00:42:24.524 Both the province and the OTF have supported being at the forefront 683 00:42:24.584 --> 00:42:27.934 of good governance, and this serves our plan members now 684 00:42:29.264 --> 00:42:30.124 and into the future. 685 00:42:32.484 --> 00:42:35.544 So as we look to what is before us in 686 00:42:35.664 --> 00:42:39.624 2026, the board remains focused on the long-term 687 00:42:39.664 --> 00:42:41.024 sustainability of the plan. 688 00:42:42.304 --> 00:42:44.524 And rest assured, we're focused on one single goal, 689 00:42:45.484 --> 00:42:48.014 and that is to keep the plan fully funded today 690 00:42:49.204 --> 00:42:50.084 and into the future. 691 00:42:51.314 --> 00:42:53.344 The plan has a strong leadership team in place. 692 00:42:54.204 --> 00:42:58.084 The board has the utmost confidence in Jo and the executive team's ability 693 00:42:58.124 --> 00:43:02.084 to navigate and guide the plan in this evolving 694 00:43:02.124 --> 00:43:02.824 environment. 695 00:43:05.264 --> 00:43:09.024 And I'd like to close by saying it's my continued honor to serve you as chair 696 00:43:09.604 --> 00:43:11.224 of the Ontario Teachers' Pension Plan. 697 00:43:11.804 --> 00:43:13.894 I'm now going to invite Claire back to the 698 00:43:14.724 --> 00:43:15.664 stage. Thank you very much.