Returns at Ontario Municipal Employees Retirement System, one of the largest Canadian pension funds, almost halved last year as gains from Canadian and non-Canadian equities fell in the wake of the credit crunch. The fund made 8.7% last year, compared to 16.4% in 2006.

Net investment income fell to C$3.9bn ($3.92bn) from C$6.5bn in 2006, the fund said in a statement. Investments in public stocks and bonds generated a net investment income of C$1.7bn, compared with C$4.9bn a year earlier. However, investment income rose in all other three of the fund's four asset classes.