PRINT THIS PAGE Canadian pension fund OMERS reorganises to double allocation to alternatives25/02/2004. Source: AltAssets. 
 The Ontario Municipal Employees Retirement System, one of Canada's largest pension funds, is reorganising itself as part of its plan to double its allocation to alternative assets. It intends to increase its allocation to private equity, property, and infrastructure to 35 per cent of total assets over the next five years from its present level of 18 per cent.
OMERS chief executive Paul Haggis said the planned increase in alternatives was designed to help meeting growing liabilities. 'Alternative non-marketable assets, as a function of our asset policy mix, should deliver strong returns over the long haul. They should generate solid cash flow, creating an annuity stream to pay benefits that will rise from $1.4bn a year today to as much as $7bn annually by 2025.
'By then, the baby boomers will be in full retirement. We want to make sure we create optimum value for our retirees through enhancing investment returns and operating cost efficiencies,' he said.
OMERS currently has investment assets of around $32bn, of which some $13bn is in public equities and $13bn in fixed income.
The reorganisation will see the creation of three new units to manage the three elements of its alternatives program. Borealis Infrastructure Corporation will oversee infrastructure investments. Oxford Properties Group will oversee real estate investments. And OMERS Merchant Banking will look after private equity investments.
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