OMERS achieves positive 2018 results

February 25, 2019
Diversification protects capital during a period of market stress

2018 Highlights:

  • Positive net return of $2.2 billion or 2.3% in 2018
  • Five-year average net return of 8.1%
  • $10 billion deployed in new private investments
  • New investment office in Singapore

Toronto, February 25, 2019 – OMERS, the defined benefit pension plan for Ontario’s municipal employees, reported a 2018 investment return of 2.3%, net of expenses. OMERS funded status improved to 96% in 2018.

“In 2018, OMERS diversified, high-quality portfolio achieved a positive return of 2.3% or $2.2 billion,” said Michael Latimer, CEO, OMERS. “A return of 10.7% 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%,” said Jonathan Simmons, Chief Financial Officer.

 

Net Return History

 

1-year

3-year

5-year

10-year

20-year

Net Return

2.3%

8.0%

8.1%

8.0%

6.6%

 

OMERS remains committed to further diversifying assets by type and geography. In early 2018, we opened a new investment office in Singapore to better explore opportunities in the Asia-Pacific Region, with investment teams from all our asset classes.

Michael Latimer concluded, “I want to thank our exceptional team of employees, who are dedicated to delivering on OMERS mission of delivering secure and sustainable defined benefit pensions to our members.”

About OMERS
Founded in 1962, OMERS is one of Canada’s largest defined benefit pension plans, with $97 billion in net assets as at December 31, 2018. A jointly-sponsored pension plan, with 1,000 participating employers, OMERS invests and administers pensions on behalf of almost half a million active and retired members. OMERS members include union and non-union employees of municipalities, school boards, transit systems, electrical utilities, emergency services and children’s aid societies across Ontario. Contributions are funded equally by members and employers. OMERS has employees in Toronto, London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities across North America and Europe – originating and managing a diversified portfolio of high-quality investments in public markets, private equity, infrastructure and real estate.

Media Contact: Ann DeRabbie, aderabbie@omers.com, 416.369.3681

 

 

Net Investment Returns for the year ended December 31,

 

2018

 

2017

Public Investments

     

Fixed Income

     

     Inflation-Linked Bonds

-0.4%

 

2.0%

     Government Bonds

-0.6%

 

0.2%

     Credit

3.1%

 

6.9%

Total Fixed Income

1.8%

 

4.3%

Public Equity

-8.3%

 

14.7%

Total Public Investments

-4.6%

 

11.4%

 

 

   

Private Investments

 

   

Private Equity

13.5%

 

11.1%

Infrastructure

10.6%

 

12.3%

Real Estate

8.7%

 

11.4%

Total Private Investments

10.7%

 

11.6%

 

 

 

 

Total Net Return

2.3%

 

11.5%

   

 

 
   
 

Asset Mix as at December 31,

 

2018

 

2017

Fixed Income

     

     Inflation-Linked Bonds

4%

 

4%

     Government Bonds

6%

 

7%

     Credit

19%

 

18%

Equities

 

 

 

     Public Equity

33%

 

34%

     Private Equity

15%

 

12%

Real Assets

 

   

     Infrastructure

18%

 

16%

     Real Estate

18%

 

14%

Short-Term Instruments

-13%

 

-5%

Total

100%

 

100%

 

 

   

Net Assets

$97 billion

 

 $ 95 billion