Key Takeaways
- Geography: Canada.
Analysis
Toronto, August 22, 2025 – The Ontario Municipal Employees’ Retirement System (OMERS) reported a 2.2% net investment return for the first half of 2025, growing its net assets to C$140.7 billion (US$101.2 billion).
Between January and June 2025, OMERS generated C$3.1 billion (US$2.2 billion) in net investment income. The fund’s 10-year cumulative net returns now total C$70.2 billion (US$50.5 billion), supported by a diversified global portfolio.
Despite a more than 5% decline in the U.S. dollar, which impacted returns across asset classes, OMERS reported positive performance in six out of seven asset categories. The top-performing asset class was infrastructure, which returned 3.6%, followed by private credit (2.7%), public equities (2.4%), government bonds (2.1%), public credit (1.6%), and real estate (1.1%).
The only negative performer was private equity, which saw a -1.3% return, due to global market uncertainty and reduced transaction activity. The fund’s strategy of hedging its currency exposure contributed an additional 1% to total performance, helping offset foreign exchange headwinds.
OMERS also benefited from its focus on fixed income assets such as government bonds and credit instruments. Gains in these areas were driven by declining bond yields and steady interest income. On the equities front, strong contributions came from core large-cap positions in financials, communication services, and technology sectors.
Globally, several large pension funds also posted modest gains during the first half of 2025, despite persistent market volatility. Australia’s Future Fund reported a 1.9% return over the same period, while the California Public Employees’ Retirement System (CalPERS) saw a 2.4% return, supported by strong performance in private credit and infrastructure. The Japan Government Pension Investment Fund recorded a 1.8% gain, largely driven by domestic equity exposure and a rebound in yen-hedged global bonds.
The OMERS mid-year update reaffirms its long-term investment strategy, which has delivered an average annual net return of 8.7% over the last five years. The fund continues to focus on portfolio diversification and maintaining ample liquidity to pursue opportunities aligned with its pension obligations.
OMERS currently manages pension benefits for over 640,000 active and retired Ontarians. Its ability to generate consistent, risk-adjusted returns across market cycles remains key to fulfilling its long-term commitment to public sector retirees.