Ontario Municipal Employees' Retirement System, Toronto, returned a net 4.4% for the six-month period ended June 30 and a 7.1% annualized net return for the 10-year period.
Benchmark returns were not provided by the pension fund.
For the first half of 2023, OMERS returned a net 3.1%.
As of June 30, net assets totaled C$133.6 billion ($97.7 billion), up from C$128.6 billion on Dec. 31, said a news release Aug. 15.
The top-performing asset class was public equity, which returned a net 10.4%, followed by private credit (7.8%), infrastructure (4.1%), private equity (3.9%) and public credit (2.2%).
“Our public equities delivered strong returns from our core holdings in large-cap stocks in the technology, communication, energy and healthcare sectors,” OMERS said in the news release. “Returns in private equity were held back by slow earnings growth and a drift downwards in valuation multiples, but significantly benefited from the strengthening of the U.S. dollar.”
Bringing up the rear in terms of performance were real estate, which returned a net -3.1% and government bonds (-0.5%). “Real estate valuation losses outweighed the growing income generated by our high-quality properties,” OMERS noted in the release.
Infrastructure ranked as the asset class with the biggest allocation, at 22%, followed by private equity and public equity, each at 19%. Thereafter came real estate (14%), private credit (12%), and government bonds and public credit, each at 10%. “Cash and funding” accounted for a -6% allocation.
By region, the U.S. accounted for the largest slice of the portfolio’s assets at 51%, followed by Canada (21%), Europe (18%), and Asia-Pacific and the rest of the world (10%).
