Teachers’ pension plan earns 9.5% in first half with boost from SpaceX shares
The Ontario Teachers’ Pension Plan reported a 9.5% return in the first half of the year, largely driven by a successful early investment in SpaceX. The fund is now considering rebalancing its portfolio to reduce overexposure to Elon Musk’s companies.
Why it matters
This demonstrates the significant impact of private space and tech sector valuations on institutional investment portfolios and pension stability.
Ontario Teachers’ Pension Plan reported a 9.5-per-cent return in the first half, boosted by a stake in Elon Musk’s SpaceX SPCX-Q that soared in value to US$8.7-billion at the end of June after the company went public.
Teachers said Monday that it booked $26.6-billion of net investment income in the six months that ended June 30, and its investments gained 14.5 per cent over a 12-month span.
An early investment in Space Exploration Technologies Corp. “was a significant contributor” to the strong first-half gains for Teachers, the pension plan said in a news release.
The Globe previously reported that Teachers invested about $300-million in SpaceX in 2019 through its venture investing arm, then made follow-on investments. The company’s value has skyrocketed as it successfully launched rockets into space, expanded its Starlink satellite internet business and merged with Mr. Musk’s artificial-intelligence startup.
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