Diversified strategy leads to steady returns, robust liquidity for retirement plan
Ontario’s municipal workers’ retirement plan has navigated a bumpy first half of 2025 to deliver what it’s CEO says is a positive result.
OMERS reported a net investment return of 2.2%, translating into a $3.1 billion gain for the six months ended June 30, 2025, despite the unsettled global markets and continued geopolitical and economic uncertainty.
READ: OMERS achieves $10.6B investment income, smashes benchmark and 10-year average return
The cumulative impact over the past decade means that OMERS has generated $70.2 billion in net investment income across those ten years and as of June 30, 2025, net assets stood at $140.7 billion, up from previous years.
“OMERS had a positive start in what was a particularly challenging environment for investors,” says Blake Hutcheson, president and CEO. “As we manage through the current short-term challenges, in both public and private investing businesses this team continues to unlock opportunities that deliver both immediate and long-term value. Over the five years that we have reported our mid-year investment update, our talented global team and investment strategies have delivered an average annual net return of 8.7%.”
In the first half of 2025, six of the seven asset classes, led by infrastructure and public equities, posted positive returns, bolstered further by solid showings from credit and bonds. But the US dollar’s decline of more than 5% eclipsed performance, dragging returns by 1.2% overall. OMERS’ active currency hedging, however, recouped nearly 1%, softening the blow.
Government bonds (2.1%), public credit (1.6%), private credit (2.7%), public equities (2.4%), infrastructure (3.6%), and real estate (1.1%) all contributed to the overall uptick, while private equities flagged with a -1.3% return amid sluggish valuations and muted deal flow.
OMERS retains ample liquidity at $17.4 billion to meet pension obligations, seize emerging opportunities, and cover potential collateral costs.
“While we expect continued market instability for the remainder of 2025, we believe our diversification in quality assets positions us well to see through this cycle, with ample liquidity to pursue opportunities that meet our objective of paying pensions for generations to come,” adds Hutcheson. “We proudly serve 640,000 Ontarians and we work every day to build lasting value that will serve them throughout their retirement.”
