Investments
Canadian equities
Allocation
10.1%
Annual return
18.85%
Exposure
$0.99 B
Benchmark
31.06%
2025 performance
The Canadian equity program delivered a strong absolute return of 18.85% in 2025, compared to a blended benchmark return of 31.06%. While 2025 was the S&P/TSX’s strongest year since 2009, returns were highly concentrated. For example, the materials sector surged by over 100% as gold posted its largest annual gain since 1979. The large cap fund’s underperformance was driven primarily by its underweight to gold and precious metals equities. In addition, some companies held in the energy, financials, and information technology sectors underperformed.
Investment approach
Our Canadian equity investments consist of two strategies.
Canadian large cap equity fund – This internally managed fund is designed to outperform the S&P/TSX Index over the long term using a quality-based investment philosophy. The Canadian market is concentrated in sectors such as energy and commodities where returns can be volatile from year-to-year. We believe a disciplined process to buy and hold equities in high-quality companies will provide reliable long-term returns over full market cycles.
Our portfolio emphasizes:
- Economic moats – Companies with defensible competitive advantages and robust business models that can withstand structural shifts in the Canadian economy.
- Cash flow durability – High-margin businesses with a proven ability to generate strong, sustainable, free cash flow.
- Capital stewardship – Management teams with a track record of disciplined capital allocation and clear, executable growth strategies.
Low volatility strategy
This managed fund is benchmarked to the BMO Canadian Low Volatility Index, which serves as a complement to the core largecap strategy.
Capital allocation
As of year-end 2025, the Fund remains slightly overweight in Canadian equities. Our current allocation is 10.1% while our policy benchmark is 9.5%.
90.7% of the Canadian equity assets are invested in our Canadian large cap equity fund, while 9.3% of the Canadian equity assets are invested in an internally managed Canadian low volatility equity fund.
Canadian equities
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Allocation
10.1%
Annual return
18.85%
Exposure
$0.99 B
Benchmark
31.06%
2025 performance
The Canadian equity program delivered a strong absolute return of 18.85% in 2025, compared to a blended benchmark return of 31.06%. While 2025 was the S&P/TSX’s strongest year since 2009, returns were highly concentrated. For example, the materials sector surged by over 100% as gold posted its largest annual gain since 1979. The large cap fund’s underperformance was driven primarily by its underweight to gold and precious metals equities. In addition, some companies held in the energy, financials, and information technology sectors underperformed.
Investment approach
Our Canadian equity investments consist of two strategies.
Canadian large cap equity fund – This internally managed fund is designed to outperform the S&P/TSX Index over the long term using a quality-based investment philosophy. The Canadian market is concentrated in sectors such as energy and commodities where returns can be volatile from year-to-year. We believe a disciplined process to buy and hold equities in high-quality companies will provide reliable long-term returns over full market cycles.
Our portfolio emphasizes:
- Economic moats – Companies with defensible competitive advantages and robust business models that can withstand structural shifts in the Canadian economy.
- Cash flow durability – High-margin businesses with a proven ability to generate strong, sustainable, free cash flow.
- Capital stewardship – Management teams with a track record of disciplined capital allocation and clear, executable growth strategies.
Low volatility strategy
This managed fund is benchmarked to the BMO Canadian Low Volatility Index, which serves as a complement to the core largecap strategy.
Capital allocation
As of year-end 2025, the Fund remains slightly overweight in Canadian equities. Our current allocation is 10.1% while our policy benchmark is 9.5%.
90.7% of the Canadian equity assets are invested in our Canadian large cap equity fund, while 9.3% of the Canadian equity assets are invested in an internally managed Canadian low volatility equity fund.