--- title: "Ontario Teachers’ annual report: purchases behind a shrinking balance | Altss Blog" description: "Ontario Teachers’ 2025 report reconciles a shrinking Level 3 balance with continued purchases, separating valuation movements from future commitments." canonical: "https://altss.com/blog/ontario-teachers-annual-report-purchases-sales-commitments" --- [Altss Research](https://www.linkedin.com/company/altss) 4 min read Updated Oct 22, 2026 Share # Ontario Teachers’ annual report: purchases behind a shrinking balance Ontario Teachers’ 2025 report reconciles a shrinking Level 3 balance with continued purchases, separating valuation movements from future commitments. [Back to blog](https://altss.com/blog) Share [LinkedIn](https://www.linkedin.com/sharing/share-offsite/?url=) [X](https://x.com/intent/tweet?url=&text=Ontario%20Teachers%E2%80%99%20annual%20report%3A%20purchases%20behind%20a%20shrinking%20balance) Copy link Ontario Teachers’ ended 2025 with C$179.125 billion of Level 3 investments and related balances, C$14.717 billion below the opening balance. Yet its [annual report](https://www.otpp.com/content/dam/otpp/documents/reports/2025-ar/otpp-2025-annual-report-eng.pdf) records C$17.908 billion of purchases during the year. For a GP researching a pension, the shrinking balance and continuing purchases answer different questions: how much exposure remained and what activity occurred within it. Level 3 is a valuation category for positions measured using significant unobservable inputs. Ontario Teachers’ reconciliation spans several investment categories and investment-related receivables and liabilities. It is not a private-equity allocation or a schedule of new commitments to external funds. That scope matters before using the figures to assess a manager’s fundraising prospects. ## Reconcile the purchases, sales and valuation movements The bridge on page 123 supplies the explanation. In Canadian dollars, the opening C$193.842 billion plus C$17.908 billion of purchases, less C$33.264 billion of sales, plus C$0.639 billion of net gains produces the C$179.125 billion closing balance. The table reports no transfers into or out of Level 3 in 2025. Sales exceeded purchases, while the net gain was positive. The balance contraction therefore cannot be read simply as a valuation loss or a halt in investment activity. Equally, the purchases row does not identify which manager received a new fund commitment. It records movements in the measured investment balances; the transaction form and recipient require more detail. Even the positive gain needs a second look. The footnote breaks it into C$11.269 billion of net realised gains and a C$10.630 billion net decrease from unrealised gains and losses, leaving C$639 million overall. Netting those components reconciles the table, but conceals different aspects of portfolio performance. The small positive total therefore should not be read as a uniformly positive valuation result. ## Read future obligations at their stated scope Note 13, on page 146, reports C$19.1 billion of commitments at December 31, 2025, compared with C$22.6 billion a year earlier. These cover investment and other transactions that may be funded over the next several years under agreed terms. The note describes outstanding future obligations, with a broader scope than subscriptions to externally managed private funds. It supplies neither a total of new fund commitments signed during 2025 nor a budget for a GP to pursue. Reconstructing new commitments from the change between the two year-end amounts would require the intervening additions, funding and other movements. The annual-report purchases row cannot fill that gap: acquiring a position and agreeing to fund a vehicle are different events. The [March 10, 2026 results announcement](https://www.otpp.com/en-ca/about-us/news-and-insights/2026/ontario-teachers-announces-positive-2025-results/) gives the activity business context. Its 2025 highlights include acquiring Spain’s Donte Group and completing sales of stakes in five European airports. Those examples show investment and realisation alongside one another. The release does not allocate their amounts to the Level 3 bridge, so they should not be used to explain a particular share of its sales or purchases. ## Keep the pension’s funding position in view A shrinking Level 3 balance also coexisted with growth in the pension’s total net assets available for benefits. The consolidated statement on page 113 reconciles C$17.533 billion from net investment operations and a C$4.469 billion reduction from net member-service operations to a C$13.064 billion increase in net assets. The closing total was C$279.403 billion. This is a broader statement of the pension’s financial position, not an additional commitment pool. For fundraising research, the next question is specific: which reported activity involved a fund subscription, a direct acquisition, a follow-on investment or a realisation? A named commitment record can then establish the receiving vehicle, original amount and relevant date. The annual report provides portfolio context around that relationship rather than substituting for the record itself. Altss’s [CalPERS liquidity analysis](https://altss.com/blog/calpers-private-market-commitments-liquidity-total-portfolio-approach) connects contractual calls with portfolio funding choices. Ontario Teachers’ adds a complementary lesson: explain the movements behind the exposure before turning an annual-report balance into a view about new LP capital. A useful GP proposition still has to establish the strategy fit, investment form and future funding demand it would bring to that portfolio. 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