Ontario Municipal Employment Retirement System has put a team in place to analyze what the world will look like in the post-pandemic era. The C$109 billion ($77 billion) pension fund is weighing everything from what it’ll look like when people go back to work to how different companies in its portfolio will fare, Blake Hutcheson said in a Canadian Club of Toronto virtual roundtable.

“Sadly, some of our companies won’t make it, it’s just a fact,” said Hutcheson, who takes over as chief executive officer from Michael Latimer in June. “Some of our private equity investments won’t make it, in real estate, some will take months to come back, some will take years.” Infrastructure tends to be the most resilient in times like this, he said, as governments tend to be involved.

Last year, OMERS cut its stock holdings as its returns climbed and added to its infrastructure bets, while decreasing its real estate and private equity holdings moderately. The firm posted 11.9% in returns on its investments in 2019. It plans to grow to C$200 billion of assets under management over the next seven to 10 years. Corporate Stress Tests Over at Ontario Teachers’ Pension Plan, internal teams have started to run stress tests with portfolio companies to see how they are being impacted, said its head of equities, Jane Rowe. The pension fund’s management teams are also working with its treasury department to address potential liquidity issues with those companies, she said.

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