Ontario Teachers’ Pension Plan CEO Jo Taylor expects future growth in defence investments, but said the fund needs to tread carefully when buying assets in the space, after some of its members last year urged the pension to stop investing in weapons manufacturing. (Financial Post)

Talking point: Taylor said the fund is now reconsidering its holdings in the U.S., where about 33 per cent of its portfolio is invested in value terms. He said geopolitical uncertainty is a new factor to consider when investing in the U.S. market, long considered stable and reliable for generating investment returns. The fund is casting a wide net for buying opportunities globally,  Taylor said. Still, the fund announced this week that it will close its Hong Kong office. It’s also looking to curb risk by changing its private equity strategy, partnering with other investors on deals rather than owning entire firms itself. The pension manager reported Thursday that its portfolio gained 9.4 per cent last year, with net assets reaching $266.3 billion, though it missed its overall benchmark of 12.9 per cent.