July 19, 2016
Victoria, British Columbia – British Columbia Investment Management Corporation (bcIMC) today announced an annual combined pension return, net of costs, of -0.2 per cent for the fiscal year ended March 31, 2016, versus a combined market benchmark of -0.3 per cent.
Fiscal 2016 was a challenging year for investors. However, within a low return environment, our investment activities generated $133 million in additional value for our pension plan clients, driven by strong performance in private markets and real estate. Relative outperformance within the public equity markets, especially Canadian equities and emerging markets, as well as outperformance within our mortgages program, also contributed to investment returns.
“On behalf of our clients, bcIMC manages a diverse and quality portfolio of assets and we follow an investment discipline that focuses on the long term,” said Gordon J. Fyfe, bcIMC’s Chief Executive Officer and Chief Investment Officer. “Maintaining our discipline allows us to manage market risks during periods of volatility so our investments can provide stable cash flows and will appreciate in value over time.”
As a long-term investor, bcIMC’s mandate is to invest the funds not currently required by our clients to pay pensions and other benefits. On average, $75 of every $100 a pension plan member receives is due to our investment activities.
In fiscal 2016, we continued to build relationships globally, expanded our investment products and assessed investment opportunities that align with our clients’ long-term, risk and return objectives.
Fiscal 2016 Investment Highlights
- Committed $2.6 billion in new capital in our Private Equities program, of which $730 million was in direct investments.
- Deployed approximately $1.1 billion in direct investments in infrastructure.
- Committed $1.1 billion through the mortgage program to commercial real estate across Canada.
- Awarded an additional US$200 million China-A share quota from China regulators so we have the opportunity to invest in the region’s new service economy.
- Completed two Real Estate developments (745 Thurlow and Northwoods) and currently have 26 properties in various stages of progress across Canada
“Our investment professionals generated additional value for our clients in a low return environment. They are making the strategic investment decisions that enable us to continue to grow our clients’ long- term wealth, while also protecting the value of their funds,” added Fyfe.
For the year, bcIMC’s managed net assets were $121.9 billion. As at March 31, 2016, the asset mix was as follows: Public Equities (47.5% or $57.9 billion); Fixed Income (21.4% or $26.3 billion); Real Estate (14.4% or $17.5 billion); Infrastructure (5.9% or $7.1 billion); Private Equities (5.6% or $6.8 billion); Mortgages (2.3% or $2.8 billion); Other Strategies—All Weather (1.5% or $1.8 billion); Renewable Resources (1.4% or $1.7 billion). For more information, bcIMC’s 2015–2016 Annual Report is available on our website at www.bci.ca.