WSIB reports 2025 fourth‑quarter and annual results; CTF ends year with $187.6 billion AUM
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Summary
Staff reported the CTF returned 1.98% in Q4 2025 and 11.47% for the 12 months ending Dec. 31, 2025, noted AUM grew to $187.6 billion and reviewed asset‑class performance and macro outlook for 2026.
WSIB staff presented a quarterly performance update showing mixed relative results across asset classes for the fourth quarter and the calendar year.
Chris Hennick (presenting the fourth‑quarter performance) reported that the Consolidated Trust Fund (CTF) returned 1.98% in the fourth quarter of 2025, which trailed the passive benchmark (2.63%) and an implementation value‑added benchmark (3.68%). For the 12‑month period ending Dec. 31, 2025, the CTF returned 11.47% versus a passive benchmark return of 17.68% and an implementation value‑added return of 14.66%. Hennick said that differences reflect the fund’s substantial allocation to private markets and other long‑horizon exposures.
Staff also reported that assets under management increased to $187.6 billion at the end of the fourth quarter, up from $171.3 billion the prior year. Detailed asset‑class returns included public equity (21.25% one‑year), private equity (10.35% one‑year), fixed income (8.38% one‑year) and real estate (4.52% one‑year); staff highlighted that short‑term underperformance in private equity is not unprecedented and noted longer‑term outperformance across a 5‑ and 10‑year horizon in most cases.
Separately, Donna May Ong presented the fixed‑income review and said the CTF fixed‑income allocation returned 8.38% for the year and outperformed its benchmark by 80 basis points; she described a portfolio overweight to credit and emerging markets, higher coupon income and a longer duration position. Staff emphasized a pivot toward focusing on coupon income as a durable return driver and flagged geopolitical, fiscal and inflation uncertainty as risks for 2026.
Board members asked questions about the composition of returns (coupon versus price), historical context for benchmark misses and the team’s process for managing duration and credit exposure. Staff said they would follow up with additional historical context and send committee notices for upcoming educational sessions.