OMERS reports strong mid-year gains driven by diversified investments and strategic currency decisions
OMERS has reported a net investment return of 4.4 per cent, translating to a gain of $5.6bn for the six-month period from January 1 to June 30.
Over the 10 years ending June 30, OMERS achieved an average annualized net investment return of 7.1 per cent, resulting in a total gain of $67.5bn. The Plan's net assets reached $133.6bn by the end of June.
Blake Hutcheson, OMERS President and CEO, attributed the strong start to 2024 to the diversified portfolio and a strategic choice to maintain currency exposure to the US dollar.
Despite global uncertainties, Hutcheson emphasized that OMERS is well-positioned with significant capital, allowing the fund to be selective in pursuing growth opportunities that align with their belief that quality investments will endure through market cycles.
Jonathan Simmons, OMERS chief financial and strategy officer, highlighted that the first half of the year was driven by double-digit returns from public equities, alongside solid contributions from private credit and infrastructure.
However, real estate valuation losses detracted from overall returns, despite the growing income generated by high-quality properties in the portfolio.
Hutcheson reiterated OMERS' commitment to its members, stating that the Plan's focus remains on delivering secure retirement income to over 600,000 members. He expressed pride in the work OMERS does to support its members and contribute to a vibrant Ontario.
