OMERS, the defined benefit pension plan serving Ontario’s broader municipal sector employees, reported a 2025 investment return of 6%, generating $8.2 billion in net investment income after expenses. Net assets increased to $145.2 billion as of December 31, 2025, up from $138.2 billion at the end of 2024.
The Plan’s smoothed funded status improved to 99%, compared with 98% a year earlier, based on a real discount rate of 3.70%. Over the past decade, OMERS has delivered an average annual net return of 7.1%, contributing $73.9 billion to the Plan and materially strengthening its funded position.
OMERS said its diversified approach across asset classes and geographies helped insulate the portfolio amid market volatility in 2025. Six of its seven asset classes posted positive returns during the year, supported by a third consecutive year of double-digit gains in public equities and strong private credit performance. The organization noted ongoing challenges in private equity markets but highlighted a recovery in its real estate portfolio, particularly in office and retail assets.
Currency volatility also weighed on results, particularly due to the decline in the U.S. dollar. However, active currency hedging decisions protected 70 basis points of return and limited the foreign exchange impact to negative 1.3%.
Looking ahead, OMERS outlined ambitions under its 2030 Strategy to grow net assets to $200 billion and achieve a funded status exceeding 100%. The pension plan signaled that it expects new investment opportunities in Canada and intends to remain active in its home market, subject to meeting its investment criteria.
The Plan strengthened provisions to pay pensions by an additional $2.2 billion to reflect increasing life expectancies, even as its funded status improved. OMERS also reported progress on sustainability initiatives, including a 65% reduction in portfolio carbon emissions intensity relative to its 2019 baseline and $26 billion in green investments under its Climate Action Plan.
A study by the Canadian Centre for Economic Analysis found that OMERS’ 2025 activities in Ontario generated $15.3 billion in provincial GDP and supported more than 135,000 jobs.
OMERS serves more than 665,000 active, deferred, and retired members through over 1,000 participating employers. The organization maintains ‘AAA’ credit ratings from S&P, Fitch, and DBRS.
KEY QUOTES
“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. Over the past five years, we have generated an average annual net return of 7.7%. 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.”
Blake Hutcheson, President and CEO of OMERS
“We are pleased to see a recovery in our real estate portfolio, with good performance in office and retail, as the industry emerges from several difficult years. Volatile currency markets create challenges for many investors who invest abroad. We are certainly not alone in facing this issue, particularly as it relates to the U.S. dollar. Active decisions to hedge currencies protected 70 basis points of our return for the year. This helped to limit the foreign exchange impact on our results to negative 1.3% driven mainly by the strong decline in the value of the U.S. dollar. 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. 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. Our members, who work to keep our communities healthy and safe, face a world that feels more complex every year. Our job is to provide a stable source of retirement income that helps bring them peace of mind. We have built a Plan that sees through cycles, periods of uncertainty and decades of change. I am proud of the way our teams have invested with conviction, provided excellent service to our members, and provided promised pensions, on time and as planned, for almost 65 years.”
Blake Hutcheson, President and CEO of OMERS
“Our portfolio served us well in 2025 generating steady performance against the backdrop of significant political and economic uncertainty, particularly around trade. Despite this, six out of our seven investment asset classes delivered positive returns, led by a third year of double-digit returns from public equities and supported by another strong year for private credit investments. We continue to navigate a persistently challenging private equity market. The improvement in OMERS smoothed funded status to 99% was attained while at the same time strengthening provisions to pay pensions by an additional $2.2 billion to reflect longer life expectancies. Canadians—including our members—are living longer and the Plan is ready to meet their retirement needs in the decades ahead.”
Jonathan Simmons, Chief Financial and Strategy Officer of OMERS
