OMERS, the defined benefit pension plan for Ontario’s municipal employees, reported an 8.3% net investment return in 2024, generating $10.6 billion in income and surpassing its 7.5% benchmark. The plan’s net assets grew to $138.2 billion, up from $128.6 billion the previous year.
The pension fund, which serves nearly 640,000 members across Ontario, reported a smoothed funded ratio of 98%, up from 97% in 2023. Over the past decade, OMERS has averaged an annual return of 7.1%, adding $70.5 billion to the plan.
Blake Hutcheson, president and CEO of OMERS, attributed the strong performance to the organization’s investment strategy and leadership. “Our strong result in 2024 reflects the quality of our people and portfolio, our active strategic decisions, and our steady progress as a long-term investor,” Hutcheson said. He noted that OMERS has averaged an 8.1% annual net return over the past four years, despite economic uncertainty.
Jonathan Simmons, OMERS chief financial and strategy officer, highlighted the role of diversification in the portfolio’s success. “OMERS public equity investments delivered double-digit performance, supported by strong contributions from private credit and infrastructure,” Simmons said. He added that real estate assets continued to generate operating income, but returns were impacted by lower valuations. The fund also increased its exposure to fixed income, where return opportunities remained attractive.
In addition to financial performance, OMERS reported a 58% reduction in its portfolio’s carbon emissions intensity compared to 2019 and an increase in green investments to $23 billion.
The fund also continued its global investment activity in 2024, acquiring Grandi Stazioni Retail in Italy, increasing its stake in India’s Interise Trust, and acquiring Integris, a U.S.-based IT services provider. It also issued $3.2 billion in bonds, including its first Australian dollar offering.
OMERS, which holds a ‘AAA’ credit rating from S&P, Fitch, and DBRS, is set to release its full 2024 annual report on February 28.
