The Ontario Municipal Employees’ Retirement System (OMERS) delivered a 2.2% net investment return for the six-month period ending June 30, 2025, generating C$3.1 billion in investment income and expanding total net assets to C$140.7 billion. Even though Canada is facing reciprocal tariffs from the U.S., OMERS remains globally diversified geographically.
The first-half 2025 performance reflects measured portfolio management in challenging market conditions, with the pension fund’s diversified investment strategy supporting steady capital growth. OMERS’ asset base increased from approximately C$137.6 billion at year-end 2024, representing organic growth consistent with institutional investment objectives. “OMERS had a positive start in what was a particularly challenging environment for investors,” said Blake Hutcheson, OMERS’ president and chief executive officer, in the press release. “As we manage through the current short-term challenges, in both public and private investing businesses this team continues to unlock opportunities that deliver both immediate and long-term value. Over the five years that we have reported our mid-year investment update, our talented global team and investment strategies have delivered an average annual net return of 8.7%.”
OMERS’ H1 2025 returns demonstrated clear asset class differentiation, with infrastructure investments delivering the strongest performance at 3.6%, significantly outpacing the portfolio average. Private credit followed with solid 2.7% returns, while public equities generated 2.4% gains despite broader market volatility. Fixed income assets showed mixed performance, with government bonds achieving 2.1% returns and public credit delivering more modest 1.6% gains. Real estate investments underperformed at 1.1%, reflecting continued pressures in property markets globally. Private equity emerged as the sole negative performer, posting -1.3% returns for the period. The asset class continues to face valuation headwinds and reduced transaction velocity in the current market environment.
Over the extended investment horizon, OMERS has demonstrated resilient performance with cumulative 10-year net investment income of C$70.2 billion, indicating an annualized return profile that has successfully supported the pension fund’s long-term obligations to municipal employees across Ontario.
The H1 2025 results position OMERS among Canada’s largest institutional investors, with the pension fund’s scale and diversification strategy enabling continued portfolio expansion despite broader market uncertainties affecting pension fund performance globally.
