Ontario Teachers Hit 9.5% Gain on SpaceX, Despite Ford Axing Starlink

The Ontario Teachers’ Pension Plan recorded a 9.5 per cent return in the first half of the year, led by its early investment in Elon Musk’s rocket and satellite company, SpaceX.

According to a report by The Globe and Mail, the pension plan generated $26.6 billion in net investment income during the six months ending June 30. Over a full 12 month period, the fund gained 14.5 per cent, pushing its total assets to $303.2 billion.

The pension plan originally invested roughly $300 million in SpaceX in 2019 through its venture arm and added more funding later. Following SpaceX’s initial public offering in June, the plan’s stake ballooned to nearly $8.7 billion USD by the end of that month. Market fluctuations have since pulled the value of that holding down to around $7 billion USD, though Teachers has started selling a portion of its shares as initial lockup periods expire.

CEO Jo Taylor told The Globe and Mail that the pension fund is now looking at how to manage its overall exposure to the company. “Over time we’re going to have to look at that position and say, what is the right size for the portfolio? And part of that’s going to be looking at opportunities where we’re free to sell,” Taylor said.

The pension plan remains impressed with profitable investments like Starlink. Venture investments now represent 9 per cent of the fund’s total assets, up from 4 per cent last year, largely because of the rapid valuation growth of holdings like SpaceX. Co-chief investment officer Gillian Brown indicated the plan is comfortable with the higher allocation for now because the asset group has performed so well.

Ontario Premier Doug Ford made headlines last year after tearing up a $100 million provincial contract with Starlink over U.S. tariffs, while keeping the exact cost of the cancellation penalty hidden from taxpayers. Now, SpaceX is set to deliver a huge windfall to roughly 346,000 active and retired Ontario teachers through their pension plan.