Investments
Infrastructure
Allocation
10.2%
Annual Return
11.29%
Exposure
$828 M
Benchmark
6.15%
2023 Performance
Our infrastructure assets generated a return of 11.29% in 2023, compared to the benchmark of 6.15% (five-year forward inflation rate plus 4% for a risk premium). Our returns were supported by steady income generation and valuation gains across several assets, particularly AMPORTS. This asset drove outperformance in our co-investment portfolio. Performance was adversely impacted by unrealized losses in a few specific assets in the OMERS Infrastructure portfolio and from the Instar Essential Infrastructure Fund II.
Overall, the infrastructure portfolio continues to perform well and has benefited from inflationary tailwinds.
Investment Approach
Private credit refers to debt investments that are not financed by banks and are not issued or traded in an open market.
Examples include:
- loans to corporate borrowers
- loans made against real estate assets
- lending against contractual revenue streams like royalties
Capital Allocation
By the end of 2023, total investments in infrastructure increased to $828 million, up from $726 million in 2022. This represents 10.2% of total Fund assets. After year end, we came to an agreement with OMERS Infrastructure to unwind our agreement early. As a result, 50% of the infrastructure portfolio will be returned to CSSB in three payments made over 24 months, beginning Q1 of 2024. The priority now is to find new high-quality infrastructure investments to maintain the asset class weighting at its current level.
Infrastructure
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Allocation
10.2%
Annual Return
11.29%
Exposure
$828 M
Benchmark
6.15%
2023 Performance
Our infrastructure assets generated a return of 11.29% in 2023, compared to the benchmark of 6.15% (five-year forward inflation rate plus 4% for a risk premium). Our returns were supported by steady income generation and valuation gains across several assets, particularly AMPORTS. This asset drove outperformance in our co-investment portfolio. Performance was adversely impacted by unrealized losses in a few specific assets in the OMERS Infrastructure portfolio and from the Instar Essential Infrastructure Fund II.
Overall, the infrastructure portfolio continues to perform well and has benefited from inflationary tailwinds.
Investment Approach
Private credit refers to debt investments that are not financed by banks and are not issued or traded in an open market.
Examples include:
- loans to corporate borrowers
- loans made against real estate assets
- lending against contractual revenue streams like royalties
Capital Allocation
By the end of 2023, total investments in infrastructure increased to $828 million, up from $726 million in 2022. This represents 10.2% of total Fund assets. After year end, we came to an agreement with OMERS Infrastructure to unwind our agreement early. As a result, 50% of the infrastructure portfolio will be returned to CSSB in three payments made over 24 months, beginning Q1 of 2024. The priority now is to find new high-quality infrastructure investments to maintain the asset class weighting at its current level.