Ontario Municipal Employees returns 10% in 2014

Ontario Municipal Employees Retirement System, Toronto, returned a net 10% in 2014 vs. a net 6% return a year earlier, said a news release from the C$72 billion (US$57.6 billion) pension fund Friday.

Overall assets increased 10.8% from C$65 billion a year earlier, while OMERS' funding ratio improved 2.6 percentage points to 90.8%.

For the five-, 10- and 20-years periods ended Dec. 31, the pension fund returned an annualized 7.9%, 7% and 7.9%, respectively.

Among the various asset classes, private equity was the highest performer, returning 14.4% in 2014.

OMERS' other private markets subsidiaries — Borealis Infrastructure, Oxford Properties and Strategic Investments — returned 12.7%, 8.7% and -10.6%, respectively, in 2014.

OMERS' public markets portfolio retuned 10.7% in 2014, aided by strong bond prices, the news release said.

As of Dec. 31, OMERS had an asset allocation of 54.9% public markets, 17.1% infrastructure, 15.9% real estate, 9% private equity and the remainder in strategic investments.

Spokesman Neil Hrab could not immediately be reached for additional information.