US attractive, but capital may shift due to ‘America First’ policies, says Ontario Teachers’ CEO

The United States has long been a key market for Ontario Teachers’ Pension Plan, with nearly $30 billion in investments. Policies, including new tariffs and an “America First” approach, could push the pension giant to explore alternative destinations for capital deployment.Jo Taylor, CEO of Ontario Teachers’, stated the importance of a measured approach, stating, “The US remains attractive, we will try and continue to see other ways of having exposure to the US. But if we are not able to do that, maybe because of sort of more of an American first mentality, we will then have to really try and work out other destinations for some of our capital.”
Ontario Teachers’ Pension Plan, one of the world’s largest institutional investors, manages nearly $200 billion globally. Its strategy is rooted in long-term value creation, with a disciplined and diversified investment approach. The firm has a $4 billion portfolio in India, spanning infrastructure, private equity, real estate, and tech.
While the impact of tariffs and trade restrictions remains uncertain, Ontario Teachers’ is careful not to overreact. The firm believes in evaluating risks methodically rather than making impulsive shifts.Taylor said, “The first thing you want to do is not overcompensate, and some of the impacts of the tariffs isn’t really fully understood yet.”

Read Here | India can absorb reciprocal tariffs, but BTA poses non-tariff risks: Ajay Srivastava of GTRIThe firm has a strategy of maintaining a diversified portfolio, both across asset classes and geographically. According to Taylor, the approach is to remain agile while carefully assessing potential new investments and identifying areas of heightened exposure.

In Asia, the firm has paused new investments in China due to concerns over slowing growth and policy unpredictability. However, India continues to gain traction as a preferred investment destination.

Unlike some global investors who view India as a substitution for China, Ontario Teachers’ sees India as a unique market with its own strengths. The country’s 6% GDP growth, stable governance, and supportive foreign investment policies make it an attractive destination.

For full interview, watch accompanying video

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