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, Feb. 25, 2019 (GLOBE NEWSWIRE) -- 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

 

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.