IMCO's Strategic CoreWeave Investment Yields Substantial 2025 Returns
The Investment Management Corporation of Ontario (IMCO) reported a robust 7.4 percent annual return for 2025, largely propelled by a strategic decision to reduce its position in artificial intelligence cloud services provider CoreWeave Inc. This move generated approximately $1 billion in returns, significantly bolstering the pension manager's overall performance during the year.
Equity and Private Equity Performance Highlights
According to an official statement released on Thursday, IMCO's stock holdings demonstrated exceptional growth, surging 19.1 percent in 2025. Meanwhile, the private equity portfolio also posted solid gains, rising 6.5 percent. In contrast, the real estate investments experienced a slight decline, losing 0.5 percent over the same period.
CoreWeave emerged as the single most impactful holding for IMCO, contributing 77 basis points to the total net return. Chief Investment Officer Rossitsa Stoyanova emphasized in an interview that this investment outperformed all others in the portfolio. IMCO initially invested $150 million in CoreWeave back in 2023, capitalizing on the company's rapid valuation increase as major technology firms sought its cloud services to power advanced AI models.
Accelerated Investment Thesis and Portfolio Adjustments
"The investment thesis was realized a lot faster than what we expected," Stoyanova noted, highlighting that IMCO typically avoids large, concentrated positions. "It was a good surprise, but at the same time, we had to trim the position significantly." The pension manager has chosen not to disclose the exact size of its current stake in CoreWeave, with Stoyanova describing it as "right sized."
Beyond CoreWeave, IMCO maintains additional AI-related investments in data center providers and fiber network companies. Stoyanova expressed confidence in this sector, stating, "Regardless of who will be the AI winner, companies that provide services will succeed."
Asset Growth and Geographic Allocation
IMCO's total assets climbed to $90.7 billion by the end of 2025. The geographic distribution remained largely consistent with previous allocations:
- United States: 53 percent of total assets
- Canada: 29 percent of total assets
- Europe: 12 percent of total assets
The firm plans to maintain its current level of exposure to Canadian markets while working to increase overall assets under management.
Currency Strategy and Alternative Investments
In addition to adjusting its CoreWeave position, IMCO reduced its U.S. dollar exposure during 2025. The U.S. dollar weakened by nearly five percent against the Canadian loonie last year, which reduced total returns by approximately 1.5 percent.
A January report from the Toronto-based pension manager identified potential alternatives to the U.S. dollar, including the Swiss franc, Japanese yen, and gold. This strategic shift comes as U.S. President Donald Trump's policies exert pressure on the greenback. IMCO also suggested that Canada's response to U.S. trade pressures—particularly through increased investment in large-scale infrastructure—could create broader domestic investment opportunities.
Background and Institutional Context
Founded in 2016, IMCO was established to consolidate the management of multiple retirement funds for government workers in Ontario, Canada's most populous province. The organization continues to navigate complex investment landscapes while seeking optimal returns for its beneficiaries.
