The Ontario Municipal Employees’ Retirement System’s assets grew by 4.2 per cent to $124.2 billion in 2022, according to its annual results.
“Our significant allocations to private investments and focus on short-term credit over long-term bonds protected OMERS from the worst period of market losses incurred by investors since the 2008 global financial crisis,” said Jonathan Simmons, chief financial and strategy officer, in a press release.
The defined benefit pension plan’s returns were led by its allocations to alternative asset classes. Its private equity portfolio generated the strongest returns, rising 13.7 per cent, while its real estate allocations were a close second, at 13.6 per cent. Its infrastructure allocations grew by 12.5 per cent and investments in credit rose 3.5 per cent.
The value of the OMERS’ public markets assets depreciated during the year. Public equity investments declined 11.9 per cent while its bond holdings fell 3.8 per cent.
“As we look to 2023 and beyond, we will continue to actively create value across the portfolio, selling assets as the right opportunities arise and making new investments that are built for the future,” said Blake Hutcheson, president and chief executive officer of the OMERS, in the release. “We have ample liquidity and are well-positioned globally to pursue emerging investment opportunities that are aligned with our long-term strategy.”