TORONTO Ontario Teachers' Pension Plan (OTPP), which manages C$242.5 billion (US$181 billion) of assets, is pausing future direct investments in private assets in China, Canada's No 3 pension fund said in statement on Tuesday.

Geopolitical risk is among the risk factors that played a role in OTPP's decision, a source close to the firm told Reuters.

The pension's current exposure to China represents about 2%, or C$5 billion, of its net investments, the statement said.

OTPP will continue to invest in public markets in China, and indirectly in private markets through fund partners and external managers.

"China has a role to play in our robust portfolio construction approach. We have strong momentum in Asia and will continue seizing diversified investment opportunities in the region," said the statement.

Bloomberg first reported OTPP's move.

  - Reuters