The Ontario Municipal Employees Retirement System (OMERS) has reported a solid 6% return for the 2025 fiscal year, demonstrating resilience amid market volatility. This performance was driven primarily by substantial gains in public equity holdings, which effectively counterbalanced losses in private equity investments and adverse currency fluctuations.
Financial Performance and Asset Growth
OMERS announced that its net assets grew to $145.2 billion in 2025, up from $138.2 billion the previous year. This increase reflects the pension fund's ability to navigate challenging economic conditions while maintaining steady growth for its members.
Investment Portfolio Breakdown
The fund's public equity holdings delivered an impressive 12.3% return last year, serving as the primary driver of overall performance. Meanwhile, private credit and infrastructure investments generated returns of 8.3% and 6% respectively, contributing to the positive outcome.
However, the private equity segment experienced a 2.5% loss, a significant reversal from the 9.5% gain recorded in 2024. This decline highlights the volatility within certain asset classes and the importance of diversified investment strategies.
Currency Impact and Hedging Strategies
Currency markets presented additional challenges, particularly the decline in the U.S. dollar value. OMERS Chief Executive Blake Hutcheson noted that strategic currency hedging decisions helped limit the foreign exchange impact to negative 1.3%.
"Volatile currency markets create challenges for many investors who invest abroad," Hutcheson stated in the fund's official announcement. "Our hedging approach was instrumental in mitigating the effects of the strong decline in the U.S. dollar."
Strategic Restructuring and Portfolio Management
Over the past two years, OMERS has implemented significant changes to its private equity operations, including:
- Appointing a new global head for private equity investments
- Discontinuing direct buyout activities in European markets
- Reducing the team focused on Asian private equity opportunities
These strategic adjustments reflect the fund's ongoing efforts to optimize its investment approach and respond to evolving market conditions.
Recent Portfolio Transactions
The pension fund has been actively managing its investment portfolio through several notable transactions. Earlier this month, OMERS' private equity division agreed to sell specialty care management company Paradigm to Patient Square Capital. Additionally, in December, CBI Health—one of OMERS' longstanding portfolio companies—finalized the sale of its home-care business to Extendicare Inc.
Future Outlook and Canadian Focus
Looking ahead, OMERS emphasized its commitment to investing in Canadian opportunities that align with both the fund's objectives and national economic growth. The pension plan stated it is "well-positioned" to pursue near-term investments within Canada, signaling confidence in domestic market prospects despite global uncertainties.
The 6% return achieved in 2025 demonstrates OMERS' ability to generate consistent value for its members while adapting to complex financial landscapes. As one of Canada's largest pension funds, its performance serves as an important indicator of institutional investment trends and retirement system stability in challenging economic times.
