Funds that you contribute to an AVC account will be invested in the OMERS Fund and will receive the same net investment returns and experience the same variability as the OMERS Fund.
Our in-house teams originate, execute and directly manage most of the Plan's investments on behalf of our members. This allows us to co-ordinate opportunities across our investment platforms and manage investment costs.
We use leverage prudently to enhance investment returns and expand diversification. Our scale and diversified asset classes make us a desirable partner for other like-minded investors.
- We invest globally, with assets diversified by asset class, geography, economic sector.
- We diversify across types of income streams in order to earn long-term returns.
- We target high-quality investments, which are resilient in times of economic stress.
Our public investments include equities, fixed income and that are generally traded in financial markets. These investments are aimed at providing relatively steady income and/or capital growth.
Our private investments include private equity, infrastructure and real estate, which are held for the longer term. These holdings, specifically in infrastructure and real estate, position us to generate strong returns and consistent cash flows with more stable valuations compared to most public investments.
For more about OMERS investments, see the OMERS 2016 Annual Report
An AVC account may be attractive to members who do not want to make their own asset allocation decisions and are seeking satisfactory long-term growth with moderate volatility, through diversification of asset classes. Returns on investments will fluctuate with economic conditions in Canada and globally, individual company and industry performance, political and world events, changes in interest rates and other factors. Members should be aware that there are other savings and investment products in the market place with different risk-versus-return profiles, e.g., GICs, exchange-traded funds (ETFs) and mutual funds.