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Resilience Amidst Turbulence: OMERS Achieves 2.2% Return in a Challenging Investment Landscape

OMERS Records 2.2% Return Amid a Challenging First Half of 2025

By Barbara Shecter | Published August 21, 2025

OMERS, the Ontario Municipal Employees’ Retirement System, is one of Canada’s largest pension funds. It earned a modest 2.2 percent investment return in the first half of 2025. The fund worked through a tough global economy. It faced uncertainty. It had major exposure to the United States.

Navigating a Difficult Market Landscape

OMERS gained $3.1 billion between January 1 and June 30, 2025. This gain raised its net assets to $140.7 billion. Global economic instability and volatile markets hit it hard. Still, the fund stayed positive in public and private investments.

More than 55 percent of its assets are in the U.S. This market felt shocks from recent global trade policy changes. The Trump administration’s tariffs made things worse. These factors made investing very hard. OMERS CEO Blake Hutcheson said this environment was especially challenging.

“OMERS had a positive start in what was a particularly challenging environment for investors,” he said. “We look at short-term problems while working in both public and private investing. Our team finds opportunities that add value now and later.”

Currency Impact and Hedging Strategies

Currency shifts also played a role. The U.S. dollar fell by over five percent in the first half. This drop hurt returns, even with some hedging in place. The change contributed a -1.2 percent effect to the overall numbers.

Yet, hedging was very helpful. Jonathan Simmons, OMERS’ Chief Financial and Strategy Officer, said, “Our active choice to hedge currencies raised returns by almost one percent. These moves protected portfolio value.”

Investment Performance Across Asset Classes

Over the past five years, OMERS earned an average annual net return of 8.7%. Over ten years, the return averaged 6.9%. In total, gains reached about $70.2 billion.

In early 2025, infrastructure and public equities drove returns. Six out of seven asset classes, including credit and bonds, added positively. However, private investments—especially private equity—fell, with a -1.3 percent performance.

Simmons explained, “Uncertainty in the global marketplace stops private investment valuations. Private equities and real estate have seen fewer transactions.”

Real Estate Portfolio: Signs of Recovery Amid Market Pressures

Real estate makes up about 15 percent of OMERS’ portfolio. This segment earned a 1.1 percent return in the first six months. Many Canadian pension funds suffer because office buildings struggle. Remote and hybrid work since COVID-19 hurt demand.

OMERS stays hopeful for real estate. The fund said, “Results were supported by strong operating fundamentals, especially in office and hotels.” This suggests that the market may stabilize soon.

Legal Actions Related to Retail Property Leases

Oxford Properties, the real estate arm of OMERS, has started legal actions. These actions deal with lease agreements from the insolvent Canadian retailer Hudson’s Bay Company. In early August, Oxford filed a court document. The document opposed shifting leases to an untested entrepreneur. It warned that such moves could hurt asset stability, reputation, and performance.

The filing stressed that keeping the portfolio stable is crucial. A decline could hurt the pension fund and its millions of beneficiaries.

Looking Ahead

OMERS moves through a complex investment scene. Its challenges come from economic and geopolitical issues. Even with modest gains in the first half of 2025, its diversified strategy and active management aim to build long-term value for beneficiaries.

Contact:
Barbara Shecter
Email: bshecter@nationalpost.com

This article is part of ongoing coverage by the Financial Post on Canadian pension funds and investment markets.

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The Hidden Costs of Commuting: Why Going Back to the Office Could Mean a Pay Cut for Employees

Why Returning to the Office Feels Like a Pay Cut for Many Workers

The world shifts away from the pandemic, and employers now ask workers to meet in person. Government leaders and banks push this idea. Many workers see these new rules as a pay cut because extra expenses lower their net income. This is why.

The New Office Mandates

In Ontario, the government now demands that employees come to the office five days a week starting in 2026. Premier Doug Ford urges local governments to follow a similar plan. Major banks—Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, and Royal Bank of Canada—require staff to work in the office at least four days a week starting this September.

Many employees still favor remote work. They say coming in every day brings higher costs and a lower quality of life.

The Hidden Costs of Commuting and Office Life

Remote work helped workers save money and time during lockdowns. Now, returning to the office takes these benefits away. Workers lose in three main areas:

  • Time: The commute uses up hours each day. Less time remains for family, childcare, or personal tasks.
  • Transportation Costs: Extra expenses like gas, parking fees, and transit fares add up.
  • Daily Expenses: Spending more on lunch, coffee, and suitable work clothes grows costs.

Many workers feel these added costs cut into their pay. It seems like a reduction in their take-home income.

University of British Columbia’s Sauder School of Business professor Tsur Somerville explained, “People traded the lower cost of a house in the suburbs for the longer commute.” During the pandemic, many moved to bigger homes without worrying about commuting. In Canada, overall household savings climbed to about $350 billion.

Flexibility Remains the Top Priority for Workers

Today, flexibility is the key factor in choosing a job. Nancy D’Onofrio, director at Randstad Canada, notes that many workers need flexible schedules. In a survey of 26,000 people worldwide:

  • 55% said they would not take a job without a flexible schedule.
  • 37% left a previous job because they did not have flexibility.

Workers often choose a flexible job even if it means earning less. D’Onofrio warns that forcing full-time office work may reduce the talent pool, especially among skilled and bilingual employees.

Productivity Debate and Employer Strategies

Employers claim that productivity suffers without in-person oversight. Workers say that they perform just as well when working from home.

David Cairns, a strategist at hybrid workplace platform Kadence Inc. and former broker at CBRE Group, points out that the work-from-home rate has held steady since 2023. Before the pandemic, office occupancy ranged from 50% to 60%. The new return policies may only nudge that number a bit higher.

What Lies Ahead

Many workers hesitate to return to a full-time office schedule because of high costs. In this changing labor market, strict return policies may prompt resignations when better job offers appear.

Employers now face a clear choice. To keep top talent, they may need to rethink strict in-office rules and deal with the financial and personal costs that come with commuting.

Conclusion

For many Canadians, returning to the office is more than a change in routine. It feels like a pay cut when commuting and related expenses reduce net income. As conversations about work continue to evolve after the pandemic, employers must balance their needs with workers’ desires for flexibility and fair pay.

This article draws on insights from Financial Post reporting by Garry Marr and expert commentary from recruitment and workplace strategy professionals.

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CIBC Welcomes Mark Mulroney: A Strategic Shift from Scotiabank Ahead of New CEO Transition

CIBC Strengthens Executive Team with Hire of Mark Mulroney from Scotiabank

By Naimul Karim | Published August 13, 2025

CIBC, Canada’s fifth-largest bank, has hired Mark Mulroney from Scotiabank.
Mulroney served as vice-chair of global banking and markets at Scotiabank.
He now becomes global vice-chair at CIBC, starting mid-November.
Each word here links closely to the next, which makes the message clear.

This hire comes when CIBC faces big changes.
Its long-serving CEO, Victor Dodig, steps down after ten years.
Dodig leaves this November.
Harry Culham will then lead as the new CEO.
Short links between ideas help us follow the news easily.

Mark Mulroney is the son of former Prime Minister Brian Mulroney.
He built his career in corporate and investment banking.
At CIBC, he will use his skills to build strong client ties across all areas.
The message is simple and the words connect directly.

CIBC makes other leadership shifts, too.
Kevin Li, who led operations in Europe and global investment banking, will now guide CIBC’s U.S. region.
Christian Exshaw will take over as group head of capital markets.
Each connection is close and clear, so every change is easy to follow.

More changes are coming with retirements.
Shawn Beber, who led CIBC’s U.S. operations for 23 years, retires on July 1, 2026, and then moves to a special adviser role in November.
Chief Legal Officer Kikelomo Lawal will also retire, though the bank has not given a date.
The short paired links make this news simple to read.

Many leaders keep their roles under incoming CEO Culham but with extra tasks.
Hratch Panossian will still lead personal and business banking.
He now also supervises contact centers and client marketing.
Susan Rimmer remains the head of commercial banking and wealth management and will monitor the CIBC Caribbean group.
Chief Financial Officer Robert Sedran and Chief Risk Officer Frank Guse will continue in their roles.
Each phrase stays close to its head for clarity.

CIBC’s new executive moves show its focus on steady leadership and smart growth.
Tight word links make the report easy to follow as the bank begins a new era.

Contact: nkarim@postmedia.com

Photo Caption: Mark Mulroney (left), who is vice-chair of global banking and markets at Scotiabank, is shown with his brother Ben Mulroney at a Montreal charity event in 2022.
Photo Credit: John Kenney / Montreal Gazette

About CIBC:
CIBC is one of Canada’s largest banks. It offers many financial products and services to personal, business, public sector, and institutional clients.

About Scotiabank:
Scotiabank, or the Bank of Nova Scotia, is a leading Canadian bank. It serves clients in Canada and around the world.

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GameStop Drops as Q1 Sales Miss Offsets Earnings Beat

GameStop Corporation’s latest quarterly report has sparked renewed market debate. Despite beating earnings expectations, the video game retailer’s revenue came in far below analyst forecasts—triggering a sharp after-hours slide in its stock price. In this post, we explore the key results of Q1, the impact of a steep revenue decline on market sentiment, and the mixed outlook given the company’s ongoing digital pivot.

Revenue Miss Triggers After-Hours Slide

GameStop shares fell more than 4% in after-hours trading following the release of its mixed first-quarter results. Key details include:

  • Revenue Drop: Annual revenue dropped 17% to $732.4 million, well short of analyst projections of $754.2 million.
  • After-Hours Impact: Trading volume reached 2.4 million shares, with the stock closing at $28.65—a fall of $1.50 or about 4.98%.
  • Market Concerns: Despite posting adjusted earnings of $0.17 per share (far exceeding the forecasted $0.04), the weaker top-line performance has raised concerns over the sustainability of its core retail operations.

After-Hours Trading at GameStop
After-hours trading image depicting GameStop’s share price decline.

Earnings Surprise Versus Steep Revenue Decline

While the earnings beat marks GameStop’s fourth consecutive profitable quarter, the stark contrast between robust adjusted earnings and the significant revenue miss paints a challenging picture:

  • Earnings Beat: Adjusted earnings reached $0.17 per share compared to the Wall Street forecast of $0.04.
  • Revenue Concerns: The 16.9% year-over-year decline in sales has put the sustainability of the 36% quarterly stock gain into question.
  • Profit Turning Around: Net income improved to $44.8 million from a loss of $32.3 million the previous year, signaling a turnaround in profitability yet overshadowed by falling revenue.

Bitcoin Strategy Draws Limited Short-Term Support

GameStop’s foray into cryptocurrency has attracted attention but has yet to deliver noticeable short-term market comfort:

  • Stable Crypto Holdings: The company did not add to its bitcoin holdings in Q1 after purchasing 4,710 BTC (worth roughly $516 million at current prices) in May.
  • Speculative Pivot: Although the crypto pivot mirrors the strategy of companies like MicroStrategy, the lack of further acquisitions and operational guidance on its digital asset plan has left traders cautious.
  • Strong Liquidity: With $6.4 billion in cash, cash equivalents, and marketable securities—up significantly from $1 billion last year—GameStop has a solid liquidity position that supports its speculative strategy but does little to offset core retail sales concerns.

Analyst Sentiment and a Bearish Short-Term Outlook

Despite a notable earnings beat, market analysts remain skeptical:

  • Negative Ratings: The sole recommendation on Wall Street is a “strong sell,” with no “buy” or “hold” ratings in sight.
  • Price Target: Analysts have set a median 12-month price target at $13.50, well below the current trading levels.
  • Focus on Top-Line Performance: The after-hours drop underscores that traders are prioritizing top-line revenue performance over speculative strengths like bitcoin exposure or a strong treasury.

Conclusion

In summary, while GameStop continues to post quarterly profits and bolsters its balance sheet with a strong cash reserve, the substantial revenue miss raises serious questions about the long-term viability of its retail operations. Coupled with a cautious approach to its cryptocurrency strategy and a bearish sentiment among analysts, the current outlook for GameStop suggests that regaining momentum in the near term will be a steep climb.

Tags: #GameStop #EarningsBeat #RevenueMiss #StockMarket #Crypto