Ontario Municipal Employees Retirement System, Toronto, earned 16.4% on its investments in 2006, with investment income growing by $6.5 billion, said Patrick Crowley, CFO of the pension system. The fund had $47.6 billion in assets as of Dec. 31.
Mr. Crowley attributed the return to strong public market performance and a focused strategy launched a few years ago to increase the fund's private market exposure. The retirement system aims to have 37.5% of assets invested in private markets - real estate, infrastructure and private equity - which will generate stronger and more stable returns over the long term by removing some of the volatility of public markets, he said. The fund currently has 24.2% in private markets.
In 2005, the fund earned 16% on investments, gaining $5.5 billion.