OMERS Pension Plan Reports $8.2 Billion Investment Income for 2025
The OMERS pension plan, which serves municipal sector employees across Ontario, has announced a strong financial performance for the year 2025. The defined benefit pension plan earned a net investment return of 6% after expenses, translating to $8.2 billion in investment income.
Financial Growth and Funded Status Improvement
Net assets for the plan grew significantly from $138.2 billion at the end of 2024 to $145.2 billion by December 31, 2025. This growth contributed to an improvement in the plan's smoothed funded status, which increased to 99% from 98% in the previous year. The calculation uses a real discount rate of 3.70%.
Over the past decade, OMERS has demonstrated consistent performance with an average annual investment return of 7.1% net of expenses. This long-term success has added $73.9 billion to the plan's value and played a crucial role in strengthening its financial position.
Leadership Perspective on Performance
Blake Hutcheson, President and CEO of OMERS, commented on the results: "OMERS performance in 2025 demonstrates the resilience of our plan amidst a turbulent market. Since becoming CEO, I have been proud to lead a team committed to delivering enduring value for our 665,000 members by maintaining a disciplined investment approach."
Hutcheson noted that over the past five years, the plan has generated an average annual net return of 7.7%. He also highlighted the organization's strategic direction: "Our 2030 Strategy positions the Plan well for further success in the years ahead. We expect to have $200 billion in net assets by 2030, and will be more than 100% funded."
Portfolio Performance Across Asset Classes
Jonathan Simmons, OMERS Chief Financial and Strategy Officer, provided details on portfolio performance: "Our portfolio served us well in 2025 generating steady performance against the backdrop of significant political and economic uncertainty, particularly around trade."
Simmons reported that six out of seven investment asset classes delivered positive returns for the year. Public equities led the way with a third consecutive year of double-digit returns, while private credit investments also showed strong performance. He acknowledged ongoing challenges in the private equity market, which the organization continues to navigate.
Real Estate Recovery and Currency Management
The real estate portfolio showed signs of recovery in 2025, with good performance in office and retail sectors as the industry emerges from several difficult years. Hutcheson remarked on this positive development, noting the improvement in these key property segments.
Currency volatility presented challenges for international investments, particularly related to the U.S. dollar. OMERS implemented active currency hedging strategies that protected 70 basis points of the annual return. This helped limit the foreign exchange impact on results to negative 1.3%, primarily driven by the strong decline in the value of the U.S. dollar.
Future Investment Focus and Canadian Opportunities
OMERS is well-positioned to invest across its focus geographies, including increased opportunities in Canada. Hutcheson emphasized the organization's commitment to its home market: "This is a pivotal time in Canada. As a nation, we have a significant opportunity to build a stronger and more resilient future, and OMERS wants to be part of that."
He continued: "We are a proudly Canadian pension plan with a deep history of investing in our home market. We like the advantage that our relationships and on-the-ground expertise offer. Any transactions we might undertake will have to meet the high bar we set for managing the Plan on behalf of our members, but we aspire for near-term opportunities in Canada that will support both our objectives and the country's growth."
The pension plan's diversified approach across asset classes and geographies has helped insulate it from market cycle challenges. This broad asset base allows different segments to perform strongly in varying market and economic conditions, contributing to overall stability and growth.
