OMERS announces 2021 net return of 15.7% and net income of $16.4 billion

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TORONTO, Feb. 28 10, 2022 (GLOBE NEWSWIRE) — OMERS, the defined benefit pension plan for municipal sector employees in the Province of Ontario, today announced a return of 15.7% in 2021, net of expenses, which which equates to $16.4 billion of net investment income. This result exceeded the Plan’s absolute benchmark return of 6.6% by more than $9 billion. OMERS net assets reached $121 billion as of December 31, 2021.

“Our global diversification strategy and consistent focus on a portfolio of high-quality assets has generated exceptional returns for our hard-working members in 2021,” said Blake Hutcheson, President and CEO of OMERS. “We are delighted to have exceeded our benchmarks in all segments of our portfolio. And now we look to the future with deep and dedicated international teams and sufficient capital to deploy to support our long-term strategies.

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Four key factors drove the outperformance versus our benchmark:

  • Our public equity portfolio returned 20.7%, reflecting a strong year in public markets.
  • Our private equity business grew earnings, both organically and through acquisitions. Private equity returned 25.8%, reflecting higher valuations across our portfolio, including venture capital and growth capital, and the sale of one of our European services activities during the year.
  • Our higher allocation to industrial real estate assets added value as demand for warehousing and logistics space increased, driven by the strength of e-commerce. Our real estate assets generated a return of 15.9% and our real estate business, Oxford Properties, continued to expand its global presence.
  • Our infrastructure investments have continued to generate positive and consistent returns, gaining 10.7% in 2021, underscoring our long-term strength in this asset class.

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For more details, please refer to the asset class table below.

Also in 2021, OMERS announced a goal of net zero greenhouse gas emissions across its portfolio by 2050, expanding on its original commitment to reduce portfolio carbon intensity by 20% by 2025 .

“OMERS 10-year average net return is now 8.0%,” said Jonathan Simmons, OMERS Chief Financial and Strategy Officer. “Long-term returns have helped improve the plan’s funding from 86% in 2012 to 97% today, while allowing OMERS to reduce our real discount rate by 50 basis points to 3.75% at during the same period.

Over the past year, OMERS has also reached an important milestone as it prepares to celebrate its 60and birthday this spring. “For six decades, OMERS has provided its members with secure defined benefit pension plans. Our entire team is connected and inspired by the work we do serving those who care for our Ontario communities. We look forward to continuing to build a sustainable, affordable and meaningful plan for the next sixty years and beyond,” concluded Mr. Hutcheson.

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Further details on OMERS 2021 results are provided in our Annual Report, available at www.omers.com.

About OMERS
Founded in 1962, OMERS is one of the largest defined benefit pension plans in Canada, with net assets of $121 billion as of December 31, 2021. OMERS is a jointly sponsored pension plan, with 1,000 participating employers ranging from major cities to local agencies, and over half a million active, deferred and retired members. OMERS members include unionized and non-unionized employees of municipalities, school boards, local councils, public transit systems, electric utilities, emergency services and aid societies. childhood of Ontario. Contributions to the Plan are funded equally by members and employers. OMERS teams work in Toronto, London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities in North America and Europe. , infrastructure and real estate.

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OMERS media contact:

Neil Hrab
OMERS Manager, Media Relations
E: nhrab@omers.com
Phone. : +14163692418

Net returns on investment
for the years ended December 31,
2021 2020
Public investments
Obligations 1.3 % 1.1 %
Credit 5.8 % -4.3 %
Public Equity 20.7 % 1.5 %
Total public investment 14.6 % -3.1 %
Private investments
Capital investment 25.8 % -8.4 %
Infrastructure 10.7 % 8.6 %
Immovable 15.9 % -11.4 %
Total net return 15.7 % -2.7 %
Asset Allocation as of December 31
2021 2020
Fixed income
Obligations 6 % 6 %
Credit 14 % 17 %
Shares
Public Equity 29 % 31 %
Capital investment 16 % 14 %
real estate
Infrastructure 20 % 20 %
Immovable 16 % 14 %
Short-term instruments -1 % -2 %
Total 100 % 100 %
Net assets $121 billion $105 billion

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