Ontario Teachers’ Pension to leave Hong Kong amid dearth of deals, geopolitical risks
Canada’s third-largest pension fund will wind down its operations over the next 18 months, spokesman says
Ontario Teachers’ Pension Plan, the third-largest pension fund in Canada, is shutting down its Hong Kong office as it reduces its exposure to the region amid a dearth of deals and persistent political risks.
“We have made the difficult decision to close our Hong Kong office and plan to wind down on-the-ground operations over the coming 18+ months,” the fund’s spokesman said in a statement on Thursday.
“As part of this change, certain Hong Kong-based employees will be offered the opportunity to transfer to Singapore. Unfortunately, others will leave the organisation and we’re working to support each of them.”
Ontario Teachers’ managed C$255.8 billion (US$178.5 billion) as of mid-2024, making it the world’s 20th largest by assets under management. It manages funds for 340,000 retired and working teachers and invests in more than 50 countries.
The decision to close the office follows its move to step back from China deals and the departure of top regional executives.
The fund said in January 2023 that it would pause future direct investments in private assets in China while continuing to invest through fund partners. China accounted for about 2 per cent of its portfolio, or C$5 billion. Geopolitical risk was a key factor for the decision to pull back.