Michael Nobrega, the Chief Executive Officer of the Ontario Municipal Employees Retirement System said his fund, one of Canada's largest, has been liquidating holdings to ensure it has the cash to take advantage as the public sector sells off assets to rein in huge deficits.

"I think at some point in time, the governments have to dispose of assets", Mr. Nobrega said.

The first targets could be in Ontario, where Provincial Government Officials have confirmed they are investigating the possibility of selling stakes in assets such as the Ontario Lottery and Gaming Corp., the Liquor Control Board of Ontario and electricity generation and distribution companies, Ontario Hydro and Hydro One.

He refused to comment on which of the Crown corporations OMERS would prefer to bid on, saying he is interested in "all the assets going".

Mr. Nobrega said other opportunities "will inevitably arise" as major countries such as the United States and Japan accumulate "unsustainable" debts that exceed more than 100% of their gross domestic products.

OMERS, yesterday reported, 10.6% returns on its investments in 2009, a sharp increase from a loss of 15.3% in 2008.

The fund currently has 61% of its assets in public debt and equity markets and 39% in private holdings, but plans to reduce the public component to 53% in the next few years.