Size and Performance in Pension Plan Management

September 20, 2011

One of the key tenets of our 2011 – 2015 Enterprise-Wide Strategic Plan is the belief that there are economies of scale that that come into play when our investment professionals have access to a larger capital pool for investment opportunities. Increased capital will also improve OMERS ability to access large-scale investments that can generate the kind of superior and sustainable long-term investment returns that help meet our pension obligations to over 400,000 pension plan members. Our Strategic Plan outlines a number of initiatives to increase the size of the capital pool through Canadian sources, including offering services to other pension plans and the possible consolidation of certain smaller plans, where the fit is right, into the OMERS Pension Plan.

A recent study by Alexander Dyck and Lukasz Pomorski at the Rotman School of Management, University of Toronto provides concrete evidence that the size of a pension plan contributes in a meaningful way to internal efficiencies and better investment performance, both of which improve the prospect of a secure retirement benefit for Plan members.

Download a copy of the Research Report: Is Bigger Better? Size and Performance in Pension Plan Management