Private markets, including real estate, drive OMERS’ 2018 gains
OMERS, the defined benefit pension plan for Ontario’s municipal employees, reported a 2018 investment return of 2.3 percent, net of expenses. OMERS funded status improved to 96 percent in 2018.
Private investment returns in 2018 and 2017, respectively, include:
- Private equity: 13.5 percent, 11.1 percent
- Infrastructure: 10.6 percent, 12.3 percent
- Real estate: 8.7 percent, 11.4 percent
- Total private investments: 10.7 percent, 11.6 percent
“In 2018, OMERS’ diversified, high-quality portfolio achieved a positive return of 2.3 percent or $2.2 billion,” said Michael Latimer, CEO of OMERS. “A return of 10.7 percent from private investments and positive returns on our credit portfolio buffered the impact of public markets in a year when all major indices were lower compared to where they were at the beginning of the year.”
“The 2018 improvement in our funded status primarily reflects our five-year net investment return of 8.1 percent,” said Jonathan Simmons, CFO of OMERS.
OMERS remains committed to further diversifying assets by type and geography. In early 2018, it opened a new investment office in Singapore to better explore opportunities in the Asia Pacific region, with investment teams from all our asset classes.
