bcIMC REPORTS 2011-2012 COMBINED PENSION RETURNS Combined Pension Return of 5.9% Added $1.4 Billion in Value for Clients

July 31, 2012

Victoria, B.C. – British Columbia Investment Management Corporation (bcIMC) today announced that it recorded a one-year annual return of 5.9 per cent, net of fees, for combined pension plans for the year ending March 31, 2012. By exceeding a combined market benchmark of 3.8 per cent, this result added $1.4 billion in value for bcIMC’s pension plan clients, net of investment management fees.

“Domestic real estate, private equity and infrastructure were the primary drivers of this value-added performance,” said Doug Pearce, Chief Executive Officer / Chief Investment Officer of bcIMC. “Strong performance in fixed income and the private market asset classes also offset the weaker returns within the global public equity markets.”

Among the specific highlights from the past year were:

  • committing over $1.1 billion to new mortgage loans and $850 million to private equity investments
  • enhancing our clients’ strategic investment portfolio with the acquisition of TimberWest Forest Corp. (in partnership with the Public Sector Pension Investment Board)
  • continuing progress with bcIMC’s 14 real estate development projects across Canada
  • expanding our global equity platform with the funding of two new investment pooled funds – Indexed Global Equity Fund and Enhanced Indexed Global Equity Fund
  • integrating the consideration of environmental, social and governance issues into the fundamental company analysis done by bcIMC’s Capital Markets Research Group
  • receiving an overall satisfaction rating of 95 per cent from our clients in this year’s independent client survey, reaffirming our ongoing commitment to our clients
  • receiving an unqualified audit opinion on our Service Organization Controls Report (Canadian Standard for Assurance Engagements – CSAE 3416)
  • increasing our total assets under management to $92.1 billion, up by $5.2 billion from the previous year

“I am also pleased with the results we have provided for clients over the last five years, particularly given the global financial crisis and volatility within the capital markets,” added Pearce. “The five-year annualized return for our combined pension plans was 3.3 per cent net of investment management fees, which contributed over $262 million in added value. Our clients have fared very well compared to others and as a result, have been able to recover the declines in asset values experienced during the financial crisis.”

bcIMC’s portfolio on behalf of clients encompasses six major asset classes: Fixed Income (26.8 per cent or $24.7 billion), Mortgages (4.1 per cent or $3.8 billion), Private Placements (4.4 per cent or $4.1 billion), Public Equities (45.0 per cent or $41.4 billion), Real Estate (14.4 per cent or $13.3 billion – net asset value; gross real estate value is
$16.7 billion), and Strategic Investments and Infrastructure (5.3 per cent or $4.8 billion).

For more information about bcIMC and to access the 2011−2012 Annual Report, please visit the bcIMC website at www.bcimc.com.