Year in Review

This Annual Report is addressed to our members, employers, sponsors, unions, associations, and the many others who are interested in OMERS 2018 performance.

2018 Highlights

  • Funded Ratio

    96%

    Funded Ratio

  • Net Rate of Return

    2.3%

    Net Rate of Return

  • Billion in Net Assets

    $97

    Billion in Net Assets

  • Billion in Pension Payments
    Members

    $4.3

    Billion in Pension Payments

  • Member Satisfaction

    91%

    Member Satisfaction

  • Employer Satisfaction

    85%

    Employer Satisfaction

Credit rating of AAA from DBRS, Aa1 from Moody’s Investors Service, and AA+ from Standard & Poor’s

The Plan achieved a net investment return of 2.3% against a challenging backdrop, in a year when virtually all major public markets were down. Our five-year net return was 8.1%.

While returns were below our absolute return benchmark of 7.3%, our diversified portfolio of high-quality assets protected OMERS from capital loss during a period of market stress.

In 2018, our smoothed funded ratio increased by two percentage points to 96%, reflecting improvement for the sixth consecutive year. On a fair-value basis, the funded ratio declined by four percentage points from 101% to 97%, as the net return was below the discount rate of 6%.

We undertook a rigorous assessment of the challenges that will influence the long-term health of OMERS, providing an opportunity for further dialogue on the risks facing our Plan.

In 2018, we made progress toward our 2020 Strategy:

  • We deployed $10 billion in private market assets, in pursuit of our asset mix targets.
  • We directly engaged our stakeholders on the challenges facing our Plan. Based largely on the feedback received, the SC Board made two changes that will address issues of fairness and equity.
  • We opened a new investment office in Singapore to support our objective of gradual deployment of capital into higher-growth, Asia-Pacific markets.
  • Member satisfaction remained high at 91%.

Since the first year of our 2020 Strategy in 2015:

  • Our investment teams have generated $4.1 billion of net returns above our discount rate.
  • Net assets have grown by $20 billion to $97 billion.
  • We have reduced our discount rate by 0.25% to 6% – three years ahead of the schedule set out in the Strategy.
Contribution rates remain unchanged for 2019.