Investment Management Corp. of Ontario delivered a 7.4% net return for 2025, driven primarily by strong equity performance and strategic position trimming. According to reports from Bloomberg News, the pension manager's stock holdings gained 19.1% during the year, while private equity investments rose 6.5%. The real estate portfolio declined 0.5% during the same period.
The standout performer was CoreWeave Inc., which contributed 77 basis points to IMCO's total net return, making it the most significant contributor to the pension manager's performance. As reported by Bloomberg News, IMCO invested $150 million in CoreWeave in 2023, and the company's valuation soared as major technology companies demanded its cloud services for AI model development. CoreWeave went public in March 2025, with IMCO realizing approximately $1 billion from its position trimming.
Chief Investment Officer Rossitsa Stoyanova noted that the investment thesis was realized faster than expected, prompting IMCO to trim its position significantly. According to Bloomberg News, IMCO declined to disclose the current size of its CoreWeave stake, which Stoyanova described as 'right sized.' The firm also maintains AI-related investments in other data center providers and fiber networks, with Stoyanova stating that companies providing AI services will succeed regardless of the ultimate AI winner.
IMCO's assets under management reached $90.7 billion at year-end 2025, with the U.S. accounting for 53%, Canada 29%, and Europe 12% of total assets. As reported by Bloomberg News, the firm plans to maintain its current Canada exposure while increasing overall assets. The company also decreased its U.S. dollar exposure, with the dollar weakening by nearly 5% against the Canadian dollar, reducing total returns by approximately 1.5%.
In response to U.S. dollar weakness, IMCO cited the Swiss franc, Japanese yen, and gold as potential alternatives to the U.S. dollar in a January report. According to Bloomberg News, the firm noted that U.S. President Donald Trump's policies are pressuring the greenback, while Canada's response to U.S. trade pressures through increased infrastructure investment may broaden domestic investment opportunities. IMCO was founded in 2016 to consolidate retirement fund management for government workers in Canada's most populous province.
