Key Takeaways
- • OMERS delivered a 6% net investment return in 2025, generating $8.2 billion in earnings and lifting its smoothed funded status to 99%, up from 98% in 2024, with net assets reaching $145.2 billion.
- • The pension plan achieved a 7.1% average annual net return over the past decade, adding $73.9 billion and materially strengthening its long-term funding trajectory toward full capitalization.
- • Six of seven asset classes posted gains in 2025, led by public equities posting their third consecutive year of double-digit returns and strong private credit performance, while the private equity market remained challenging.
- • OMERS projects $200 billion in net assets by 2030 under its "2030 Strategy," with expectations to exceed 100% funded status, underpinned by diversified portfolio positioning across geographies and asset classes.
- • Real estate portfolio recovery drove results, with office and retail segments performing well as the sector emerged from several difficult years; currency management also positively influenced overall fund performance.
Summary
OMERS, one of Canada's largest pension funds, achieved significant progress toward full funding in 2025, delivering a 6% net investment return that generated $8.2 billion in earnings after expenses. This performance elevated the plan's smoothed funded status to 99%—a single percentage point from full funding—compared to 98% in the prior year. Net assets climbed to $145.2 billion at year-end 2025 from $138.2 billion a year earlier, reflecting steady capital accumulation amid volatile market conditions.
Blake Hutcheson, OMERS president and CEO, emphasized that the 2025 result "demonstrates the resilience of our plan amidst a turbulent market," noting the fund has generated an average annual net return of 7.7% over the past five years. This five-year performance builds on a stronger decade-long track record: OMERS averaged 7.1% annual net returns over the past ten years, contributing $73.9 billion to the plan and substantially improving its funding profile. The fund operates on a real discount rate of 3.70%.
The portfolio's diversification strategy proved effective in 2025, with six of seven asset classes posting positive returns. Public equities led performance, posting double-digit gains for the third consecutive year, while private credit delivered another strong year. However, Jonathan Simmons, OMERS chief financial and strategy officer, acknowledged that the private equity market remained challenging. Real estate also contributed meaningfully, with office and retail segments showing notable recovery after several years of underperformance. Currency management further enhanced overall returns.
Looking forward, OMERS's "2030 Strategy" targets $200 billion in net assets and funded status exceeding 100% within four years. This aspiration reflects confidence in the portfolio's diversification approach, which management views as essential to insulating the plan through successive market cycles. The fund's reliance on broad asset class and geographic dispersion positions it to navigate economic uncertainty while approaching full capitalization.
Blake Hutcheson, OMERS president and CEO, emphasized that the 2025 result "demonstrates the resilience of our plan amidst a turbulent market," noting the fund has generated an average annual net return of 7.7% over the past five years. This five-year performance builds on a stronger decade-long track record: OMERS averaged 7.1% annual net returns over the past ten years, contributing $73.9 billion to the plan and substantially improving its funding profile. The fund operates on a real discount rate of 3.70%.
The portfolio's diversification strategy proved effective in 2025, with six of seven asset classes posting positive returns. Public equities led performance, posting double-digit gains for the third consecutive year, while private credit delivered another strong year. However, Jonathan Simmons, OMERS chief financial and strategy officer, acknowledged that the private equity market remained challenging. Real estate also contributed meaningfully, with office and retail segments showing notable recovery after several years of underperformance. Currency management further enhanced overall returns.
Looking forward, OMERS's "2030 Strategy" targets $200 billion in net assets and funded status exceeding 100% within four years. This aspiration reflects confidence in the portfolio's diversification approach, which management views as essential to insulating the plan through successive market cycles. The fund's reliance on broad asset class and geographic dispersion positions it to navigate economic uncertainty while approaching full capitalization.
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