OMERS Earns $8.2B in 2025, Nears Full Funding Amid Market Headwinds

TORONTO, ON – February 23, 2026 – The Ontario Municipal Employees Retirement System (OMERS) navigated a turbulent global economic landscape in 2025 to post a solid 6% net investment return, generating $8.2 billion for its members. The performance pushed the pension plan’s total net assets to a new high of $145.2 billion and brought its smoothed funded status to 99%, placing it on the cusp of being fully funded.

Serving 665,000 municipal sector employees across Ontario, the defined benefit plan demonstrated resilience in a year marked by significant geopolitical and economic uncertainty. The results underscore a strategy of diversification that helped mitigate risks while capitalizing on pockets of strength in the market.

“OMERS performance in 2025 demonstrates the resilience of our plan amidst a turbulent market,” said Blake Hutcheson, OMERS President and CEO. “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.”

A Diversified Strategy Weathers the Storm

OMERS’ 6% return was a story of divergent asset class performance. Public equities were the standout, delivering a strong 12.3% return driven by large-cap holdings in the technology, communication services, and financial sectors. This performance mirrored a broader global equity rally in 2025, where investor optimism around artificial intelligence and resilient corporate earnings buoyed markets.

In a significant turnaround, the real estate portfolio, managed by Oxford Properties, delivered a positive 5.1% return after several difficult years for the industry. Jonathan Simmons, OMERS Chief Financial and Strategy Officer, noted the results were “supported by strong operating fundamentals, particularly in office and retail.” This recovery is a bright spot, suggesting strategic asset management is paying off.

However, not all asset classes thrived. The private equity portfolio posted a loss of 2.5%, reflecting what OMERS described as a “persistently challenging private equity market” with low deal activity and valuation headwinds. This experience aligns with broader industry trends, where many institutional investors, including other major Canadian pension plans, faced muted returns and difficulties exiting investments in a sluggish M&A environment.

Compared to its peers, OMERS’ full-year performance appears robust. While complete 2025 results from all major Canadian funds are not yet public, reports from the first half of the year indicated that many were grappling with weaker returns, suggesting OMERS' strategy successfully navigated the year's challenges. A major headwind was the currency market, where a weakening U.S. dollar detracted 1.3% from overall returns. However, the plan’s active currency hedging strategy successfully protected 70 basis points, mitigating a portion of the negative impact.

A Renewed Focus on Canadian Growth

Beyond its global diversification, OMERS made a clear and strategic declaration of its intent to increase its investments within Canada. As a self-described “proudly Canadian pension plan,” it aims to leverage its deep domestic expertise and relationships to identify new opportunities that support both its members' returns and the country's growth.

This is not a new area for the fund, which already has a substantial footprint in its home country. With approximately $34 billion, or about a quarter of its portfolio, invested in Canada, OMERS is already a significant player. Its 2025 activities highlight the breadth of this domestic focus. The plan announced a transformative co-investment to retrofit the Canada Square office complex in Toronto, broke ground on Scarborough’s first major purpose-built housing project in a generation—with 21% of units designated as affordable—and participated in a major funding round for Toronto-based quantum computing leader Xanadu Quantum Technologies.

“This is a pivotal time in Canada,” Mr. Hutcheson stated. “As a nation, we have a significant opportunity to build a stronger and more resilient future, and OMERS wants to be part of that.”

The economic ripple effect of these investments is substantial. A recent study found that OMERS' activities in Ontario alone generated $15.3 billion in provincial GDP and supported over 135,000 jobs in 2025, underscoring its role as a key engine for local and national economic development.

Charting a Greener, Larger Future

OMERS' 2025 report also detailed significant progress on its long-term strategic and sustainability goals. The plan announced a 65% reduction in its portfolio's carbon emissions intensity against a 2019 baseline and confirmed that its green investments have grown to $26 billion. This dual focus on financial returns and environmental responsibility positions OMERS as a leader in sustainable finance, integrating climate action directly into its investment framework.

Looking ahead, the fund has set ambitious targets for 2030: growing net assets to $200 billion and achieving a funded status of over 100%. Reaching these goals will require navigating a complex future. Some long-term economic forecasts project headwinds for the Canadian economy, including challenges related to productivity growth. Globally, structural shifts around debt, demographics, and geopolitics will continue to create an unpredictable investment climate.

OMERS’ leadership appears confident that its strategy is built for this reality. The plan's ability to improve its funded status to 99% while simultaneously setting aside an additional $2.2 billion to account for the longer life expectancies of its members demonstrates a proactive and prudent approach to securing its pension promise for decades to come.