Among the most significant pension funds, the Ontario Teachers’ Pension Plan (OTPP), will write off all of its $95 million FTX and FTX US investment.

A Series B investment was made in October 2021 and a Series C investment was made in January of the following year by the OTPP. More than CAD 221 billion, equivalent to $165 billion is managed by the OTPP.

Softbank, Temasek, and BlackRock, among other well-known companies, succumbed to the FTX collapse and wrote off their stake as well. The pension fund said its strategy to diversification was evident in the investment in FTX in an update dated November 17. To reduce risk and boost returns, “our strategy aims to diversify investments across asset classes, geography, time horizons, and economic outcomes to mitigate risk and enhance returns.” 

At the end of 2022, OTPP will write off its investment. Given the magnitude of the investment loss in relation to their overall net assets and their sound financial condition, its effect will be minimal, said OTPP.  “However, we are disappointed with the outcome of this investment, take all losses seriously, and will use this experience to further strengthen our approach.” 

Sequoia Capital, which invested $213.5 million in FTX companies, was among the first to write off its investment on November 9.

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