Category: Uncategorised

Victoria, British Columbia – BCI is proud to be named as one of Canada’s Top 100 Employers for the fourth consecutive year for offering employee programs that promote a flexible work environment.

“I‘m very excited that BCI has once again been recognized as a top Canadian employer,” said Norine Hale, BCI’s executive vice president, human resources, “I’m also very proud of what receiving this award says about our programs, people-focused culture, and how much we strive to support our employees.”

Maintaining a supportive work environment that prioritizes physical, mental, and social well-being was more important than ever during the COVID-19 pandemic. It is an honour to be continuously recognized as a top employer over this challenging period.

For BCI to deliver on our strategic commitments we require a highly sought after, specialized workforce. Focusing on our talent and creating programs that are meaningful to employees has been crucial to building and retaining a world-class team of investment and technical professionals. As one of Canada’s largest institutional investors with $211.1 billion in assets under management, BCI’s teams in Victoria, Vancouver, New York – and soon to come London, U.K. – work to generate the returns that our clients in British Columbia’s public sector rely on.

Coming out of the pandemic, BCI implemented a thoughtful, people-centric approach to ensure a smooth transition back to the office. A working committee, along with employee feedback, developed and led a multi-phased return to office program that allowed teams to make the necessary arrangements professionally and personally to return to office-based work after nearly two years working remotely. Hybrid working arrangements with three days onsite and the option to work two days remotely was the final phase of the program. The move to hybrid work was a success and BCI has adopted an indefinite hybrid work environment.

“We have such incredibly smart, dedicated, and passionate people working here. As the leader of BCI’s human resources program, I believe if you want to attract and retain employees, you have to show you are truly listening to them and delivering the supports they require to excel in our organization.”

Our performance-based culture fosters a healthy balance between professional and personal time. At BCI, the starting annual vacation allowance is four weeks and increases at long service intervals. Additionally, each year employees have six paid personal days.

BCI has generous maternity and parental leave with top-up payments for parents (to 85 per cent of salary for up to 52 weeks). Upon completion of a parental leave, parents have the option to utilize a phased-in return to work to support a successful transition.

“While disruptive, the pandemic provided opportunities to further modernize our work environment and employee programs. More than ever, we know career and personal supports are not one size fits all and BCI’s programs provide flexible options that empower employees to make choices that best suit their professional development, as well as health and wellness needs,” said Hale.

Mediacorp Canada Inc. operate Canada’s Top 100 Employers – the nation’s largest publisher of employment periodicals, reaching over 15 million Canadians each year. The award recipients were announced today in a special feature published in The Globe and Mail and on the Canada’s Top 100 Employers website.

This is the fourth time that BCI has applied for selection as one of Canada’s Top 100 Employers. Applicants are evaluated by the editors using eight criteria^[1] and are compared to other organizations in their field to identify those that lead their industries in offering the most forward-thinking programs and exceptional workplace cultures.

Find out more about our culture and opportunities to work with us at BCI.ca/careers

CONTACT

Olga Petrycki, Director, External Stakeholder Engagement

778-410-7310 | media@bci.ca

^[1] (1) PHYSICAL WORKPLACE; (2) WORK ATMOSPHERE & COMMUNICATIONS; (3) FINANCIAL BENEFITS & COMPENSATION; (4) HEALTH & FAMILY-FRIENDLY BENEFITS; (5) VACATION & PERSONAL TIME-OFF; (6) EMPLOYEE ENGAGEMENT & PERFORMANCE; (7) TRAINING & SKILLS DEVELOPMENT; AND (8) COMMUNITY INVOLVEMENT.

Victoria, BC – British Columbia Investment Management Corporation (BCI) and JA British Columbia (JABC) are pleased to announce BCI as a major sponsor of JABC’s More Than Money program – a student-centred and skills-focused learning opportunity offered to grade four and five classes across British Columbia. To support growing demand, BCI’s contributions will also be directed to tailored financial literacy programming for Indigenous communities.

“Every day, BCI employees come to work to build secure financial futures for our clients and their beneficiaries,” said Daniel Garant, executive vice president & global head, public markets at BCI and champion for financial literacy. “We recognize how understanding personal finances and money management at a young age can make a difference, and believe opportunities to learn these critical skills should be free, accessible, and encouraged for all youth. We hope that BCI’s sponsorship will help prepare students from all backgrounds and demographics for financial success.”

BCI supports access to education that empowers youth and adults to build foundational financial skills, as well as gain exposure to the possibility of a career in finance. Together with its employee-led financial literacy committee, who champion volunteerism and opportunities that address systemic gaps in financial education, BCI has partnered with JABC on the More Than Money program for its focus on elementary-age learners across British Columbia.

The More Than Money program aligns with British Columbia’s school curriculum and supports teachers’ learning outcomes in math, languages, and career and life education. Through games and interactive methods, students learn the basics of money management, personal banking, earning income, business planning, and responsible use of credit. It was first piloted in the 2017-18 school year with 70 program deliveries. For the current school year, JABC’s goal is to increase this to nearly 200, with 70 sessions in Indigenous communities alone.

“We are very grateful for the ongoing partnership of BCI and their sponsorship of our More Than Money program this school year,” said Sheila Biggers, president and chief executive officer of JABC. “Thanks to their support, hundreds of students across British Columbia will learn critical money management skills to help prepare them for lifelong financial health.”

BCI’s sponsorship funding reflects its commitment to financial literacy as a community focus area and builds on the growing involvement of staff. Since 2014, more than 60 employees from across BCI have volunteered to deliver over 100 programs with JABC, empowering an estimated 2,600 students, and the partnership continues to expand. Earlier this year, BCI supported JABC to offer more programs taught by Indigenous volunteers to students in Indigenous communities. For Financial Literacy Month this November, JABC and BCI’s financial literacy committee are bringing the classroom to the boardroom by hosting a full day on-site financial literacy program for two grade eight classes. Students will learn from professionals at BCI’s head office in Victoria, British Columbia, and develop critical skills related to spending, saving, and investing.

ABOUT JA BRITISH COLUMBIA

JA British Columbia (JABC) is a not-for-profit impact organization that delivers free hands-on, immersive education in work readiness, financial health, and entrepreneurship. Reaching thousands of young people each year through partnerships with educators, volunteers, donors, and sponsors, JABC is one of the few organizations with the experience and passion to build a brighter future for the next generation of innovators, entrepreneurs, and leaders.

For over 65 years, JABC has served B.C. youth, including Indigenous communities, people of colour, and at-risk populations. JABC’s real-world training helps young people develop the skills to build successful careers, prepare for the risks and rewards of entrepreneurship, and learn to thrive financially. Through JA, young people are equipped with the skillset and mindset to build thriving communities. JABC is a proud member of JA Canada and JA Worldwide, one of the world’s largest and most impactful NGOs.

ABOUT BCI

British Columbia Investment Management Corporation (BCI) is amongst the largest institutional investors in Canada with $211.1 billion under management, as of March 31, 2022. Based in Victoria, British Columbia, with offices in Vancouver and New York City, BCI is invested in: fixed income and private debt; public and private equity; infrastructure and renewable resources; as well as real estate equity and real estate debt through our independently operated platform company QuadReal Property Group. With our global outlook, we seek investment opportunities that convert savings into productive capital that will meet our clients’ risk and return requirements over time. This compels us to integrate long-term ESG matters into all investment decisions and activities. BCI’s clients include pension plans representing over 715,000 plan members, insurance funds providing more than three million Autoplan insurance policies annually, benefits coverage to more than two million workers and 225,000 companies, and special purpose funds within British Columbia’s public sector.

MEDIA CONTACTS

JA British Columbia news@jabc.org
BCI media@bci.ca

COLUMBIA, MD and VICTORIA, British Columbia – September 20, 2022 – Authority Brands, a residential services franchising platform in North America, today announced that British Columbia Investment Management Corporation (“BCI”), one of the largest institutional investors in Canada, has agreed to acquire a significant minority stake in the company, alongside funds advised by Apax Partners LLP (“Apax Funds”), which will retain majority ownership.

Authority Brands is the premier home service franchisor in North America. Its family of home service franchise brands are leaders in their industry, providing homeowners with services from the property line to the roof line. Authority Brands’ companies include 12 leading home service franchisors: America’s Swimming Pool Company, Benjamin Franklin Plumbing, The Cleaning Authority, Color World Painting, DoodyCalls, Homewatch CareGivers, Mister Sparky, Monster Tree Service, Mosquito Squad, One Hour Heating and Air Conditioning, STOP Restoration and Woofie’s. Together, these brands provide home services through approximately 860 franchise owners across North America.

Since the Apax Funds’ initial investment in 2018, Authority Brands has grown from two home service franchisors to the current 12, expanding into new geographies and services and building out a powerful infrastructure.

“We are proud to have partnered with the Authority Brands team to help build, both organically and through strategic acquisitions, a leading residential services franchising platform,” said Ashish Karandikar, Partner at Apax. “We continue to see significant room for growth by Authority Brands and are pleased to join with BCI and members of the leadership team in the next phase of the company’s journey as they extend their platform through M&A, and strategic initiatives including franchise development, technology transformation and international expansion.”

“As a long-term investor, we seek to invest in market-leading companies with strong management teams, multiple levers for growth, and resilient business models that create shareholder value, such as Authority Brands,” said Dave Hong, Senior Managing Director, Private Equity at BCI. “We look forward to working with Authority Brands and Apax to generate compelling risk-adjusted returns for our pension plan and insurance fund clients.”

“We could not be more pleased than to continue to build the premier residential services franchisor in partnership with Apax and BCI,” said Craig Donaldson, Chief Executive Officer of Authority Brands. “Both partners will add substantial value as we aim to capture further share in the highly fragmented home services market, including by evaluating M&A opportunities in new service verticals.”

Financial terms of the transaction were not disclosed. The transaction is expected to be completed in Q4 2022, subject to customary closing conditions.

Apax was advised by Harris Williams, Boxwood Partners, William Blair & Company, Moelis & Company (financial advisors), Kirkland & Ellis, Simpson Thacher & Bartlett, DLA Piper, and Lathrop GPM (legal counsel), and Ernst & Young (financial and tax advisor).

About BCI
British Columbia Investment Management Corporation (BCI) is amongst the largest institutional investors in Canada with C$211.1 billion under management, as of March 31, 2022. Based in Victoria, British Columbia, with offices in Vancouver and New York City, BCI is invested in: fixed income and private debt; public and private equity; infrastructure and renewable resources; as well as real estate equity and real estate debt through our independently operated platform company QuadReal Property Group. With our global outlook, we seek investment opportunities that convert savings into productive capital that will meet our clients’ risk and return requirements over time.

BCI’s private equity program actively manages a C$24.8 billion global portfolio of privately held companies and funds with long-term growth potential. Leveraging our sector-focused teams in business services, consumer, financial services, healthcare, industrials, and technology, media and telecommunications, we work with strategic private equity partners to source and manage direct and co-sponsor/co-investment opportunities.

About Apax Partners LLP

Apax Partners LLP (“Apax”) is a leading global private equity advisory firm. For nearly 50 years, Apax has worked to inspire growth and ideas that transform businesses. The firm has raised and advised funds with aggregate commitments of more than $60 billion. The Apax Funds invest in companies across four global sectors of Internet/Consumer, Tech, Services, and Healthcare. These funds provide long-term equity financing to build and strengthen world-class companies. For more information see: www.apax.com.

Apax Partners is authorised and regulated by the Financial Conduct Authority in the UK.

About Authority Brands

Authority Brands is the premier residential services franchising platform providing services from the property line to the roof line. Authority Brands’ companies include 12 leading home service franchisors: America’s Swimming Pool Company, Benjamin Franklin Plumbing, The Cleaning Authority, Color World Painting, DoodyCalls, Homewatch CareGivers, Mister Sparky, Monster Tree Service, Mosquito Squad, One Hour Heating and Air Conditioning, STOP Restoration and Woofie’s. Together, these brands provide home services through approximately 860 franchise owners across North America. Authority Brands, which is headquartered in Columbia, Maryland, is dedicated to supporting individual franchise owner growth with a full suite of marketing, technology, and operational support, allowing them to focus on providing exceptional service to homeowners. Please visit www.authoritybrands.com for more information.

Contacts:

For Authority Brands

Heather McLeod / 410-794-1430 / heather@authoritybrandsllc.com

For Apax

Luke Charalambous / +44 20 7872 6494 / Luke.Charalambous@apax.com

For BCI

Gwen-Ann Chittenden / +1 778 410 7310 / media@bci.ca

Victoria, BC – Today, British Columbia Investment Management Corporation (BCI) published our 2021 ESG Annual Report, an in-depth look at how we capture opportunities and manage risks associated with environmental, social, and governance (ESG) matters on behalf of our clients. The report is supported by a supplementary document that provides additional case studies.

“Addressing climate change and ESG issues is not only a source of potential investment opportunities, it also allows us to manage long-term financial risks,” said Gordon J. Fyfe, chief executive officer and chief investment officer of BCI.

“At BCI, we are guided by our fiduciary duty to clients and our organizational purpose of helping hundreds of thousands of British Columbians secure a strong financial future. The people we are serving include our children’s teachers, our health care providers, our municipal workers, and our neighbours.”

Expanding BCI’s ESG activities from a predominantly risk-mitigation approach to one that includes ESG as a source of long-term value creation remains a corporate priority. This year’s report demonstrates our progress and work under the four components of our corporate-wide ESG Strategy: Integrate; Influence; Invest; and Insight.

BCI is committed to incorporating the Task Force on Climate-related Financial Disclosures (TCFD) recommendations into our reporting and disclosure practices. Our 2021 ESG Annual Report includes our TCFD-aligned reporting and a feature on BCI’s climate action journey over more than two decades. We will release an update to our Climate Action Plan in late 2022.

2021 ESG Highlights: 

Integrate

• Continued to expand the application of our ESG Risk and Opportunity Framework, which evaluates climate-related impacts to the total portfolio over time; BCI received the Responsible Investment Association (RIA) Leadership Award for Integration for our framework and it was featured as a Principles for Responsible Investment (PRI) case study
• Conducted ESG reviews of all private equity general partners using our corporate-wide ESG Evaluation Framework for External Managers; 98 per cent have an official ESG policy and evidence of ESG integration
• Developed a custom ESG dashboard to support our internal active emerging markets team, empowering investment staff and maximizing efficiency of our ESG resources

Influence

• Engaged 299 companies in public markets, including through four collaborative engagement initiatives focused on climate change, human capital management, and gender diversity
• Participated in 20 ESG-related policy consultations, roundtables, and joint statements, including the Canadian Investor Statement on Climate Change
• Joined more than 100 general and limited partners in committing to the ESG Data Convergence Initiative, which aims to improve the quality and availability of private company data
• Updated our ESG engagement key performance indicators for our public markets program to reflect positive trends and changing priorities; we now track five categories and over 60 datapoints

Invest

• Participated in 37 sustainable bond issuances valued at over $1.7 billion, increasing total historical participation to more than $2.5 billion
• Invested in the First Nations Finance Authority’s new commercial paper program, bringing total historical participation to over $750 million
• Increased assets under management in our Global Quantitative ESG Equity Fund and Thematic Public Equity Fund, reflecting intentional allocations to these mandates and generating strong returns
• QuadReal Property Group successfully completed its second green bond issuance in 2021, and third green issuance in February 2022, for a total of nearly $1.2 billion raised to date

Insight

• Partnered with the University of Victoria and Pacific Institute for Climate Solutions to co-develop new climate finance tools over the next three years
• Researched emerging trends on the opportunities that ESG presents as a source of value creation
• Provided education and training opportunities to BCI staff, clients, and board members on topics such as climate change, Indigenous reconciliation, and labour relations

In 2021, BCI received a top spot on the Responsible Asset Allocator Initiative’s Leaders List of the 30 Most Responsible Asset Allocators, the RIA Leadership Award for Integration, and the Canadian Investment Review’s Pension Leadership Award for Sustainable Investing. This recognition reflects the increasing sophistication of our approach, and our commitment to driving positive ESG performance in our portfolio and through the broader capital markets.

Read our 2021 ESG Annual Report

Read our 2021 ESG Annual Report: Supplementary Case Studies

ABOUT BCI
British Columbia Investment Management Corporation (BCI) is amongst the largest institutional investors in Canada with $211.1 billion under management, as of March 31, 2022. Based in Victoria, British Columbia, with offices in Vancouver and New York City, BCI is invested in: fixed income and private debt; public and private equity; infrastructure and renewable resources; as well as real estate equity and real estate debt through our independently operated platform company QuadReal Property Group. With our global outlook, we seek investment opportunities that convert savings into productive capital that will meet our clients’ risk and return requirements over time. This compels us to integrate long-term ESG matters into all investment decisions and activities. BCI’s clients include pension plans representing over 715,000 plan members, insurance funds providing more than three million Autoplan insurance policies annually, benefits coverage to more than two million workers and 225,000 companies, and special purpose funds within BC’s public sector. Founded in 1999, BCI is a statutory corporation created by the Public Sector Pension Plans Act.

CONTACT
media@bci.ca 
Follow us on LinkedIn 

Generated an additional $4.4 billion in added value and increased assets under management to $211.1 billion.

Highlights for fiscal year ending March 31, 2022:

• One-year annual return of 7.4%, representing $4.4 billion in added value
• Five-year annualized return of 8.3%, representing $7.7 billion in added value
• 10-year annualized return of 9.1%, representing $13.2 billion in added value
• 20-year annualized return of 7.7%, representing $15.3 billion in added value
• Net assets under management increased by $11.5 billion to $211.1 billion in fiscal year 2022

VICTORIA, BC (July 21, 2022): British Columbia Investment Management Corporation (BCI) announced today an annual combined pension plan return of 7.4 per cent, net of all fees, for the fiscal year ended March 31, 2022, against a combined market benchmark of 4.6 percent. The returns generated $4.4 billion in added value for BCI’s pension plan clients. BCI increased the managed net assets by $11.5 billion to $211.1 billion, and reflects investment gains of $13.8 billion and client net withdrawals of $2.2 billion.

“Our strong performance reflects many years of preparation for market volatility,” said Gordon J. Fyfe, BCI’s chief executive officer and chief investment officer. “Our evolution into a world-class investment manager with active, in-house capabilities is yielding real results for our clients.”

BCI’s well-diversified portfolios and sophisticated investment strategies have safeguarded our clients’ capital through the market turbulence resulting from the COVID-19 pandemic as well as the Russian government’s invasion of Ukraine and is well positioned to continue to do so in this environment of tightening monetary policy as central banks work to address inflation. Private equity, infrastructure & renewable resources, and real estate contributed significant gains, demonstrating the effectiveness of BCI’s transition to a greater emphasis on the private markets and inflation sensitive assets.

Our multi-year performance is the best measure for our success; pension plan clients have return expectations that range between 5.65 per cent and 6.75 per cent to support their financial obligations in future years. BCI’s 10-year annualized return for combined pension plans is 9.1 per cent against a benchmark of 8.0 per cent, representing $13.2 billion of value-add. Over the five-year period, BCI delivered an annualized return of 8.3 per cent, outperforming a benchmark of 7.3 per cent and generating $7.7 billion in added value. Our pension plan clients remain fully funded, with funding ratios ranging from 105 per cent to 128 per cent. Returns are important – for every $100 a pension plan member receives in retirement benefits, on average $75 is provided by BCI’s investment activity.

“As we emerge from this unprecedented time, we continue to face increasingly complex global markets,” said Gordon J. Fyfe. “Having completed our transformation, and having put our approach to the test, we are ready to engage our strategies, talent, and tools in new ways to continue delivering the returns our clients rely on.”

Work done this year has positioned BCI to expand our global footprint and grow our influence on the investment landscape. To further power our ability to capture investment opportunities for our clients, we have opened an office in New York City for BCI’s private equity program, and will be opening a London, U.K. office to support infrastructure and renewable resource investments. Physical presence in these financial centres will bring BCI’s investment teams closer to deal flow, build brand awareness, and support the recruitment of diverse, world-class talent. Greater proximity to assets already within our portfolios also supports our approach for active oversight and engagement.

“Establishing global offices and creating our own internal emerging markets group are important next steps for creating value in the globally interconnected investment market,” said Fyfe.

We have also launched an internal active Global Emerging Markets Equity fund, bringing the cost-efficiencies and alignment benefits of in-house investing to this expanding segment of our clients’ portfolios. Investing in the emerging markets of economies that are becoming more mature, stable, and engaged globally — such as India and Brazil — offers an important opportunity for growth, particularly in periods of rising inflation and diversifies the sources of returns.

Further information on our current initiatives and activities can be found in our updated Business Plan, also released today. Guided by our Long-Term Vision, BCI evolved our corporate strategies starting in F2022. These strategies are grouped under four strategic ambitions that form the basis of our business plan: Strengthening the Client Value Proposition, Optimizing Risk-Adjusted Returns, Leveraging Digital Technology and Focusing on Our Talent— including progress around equity, diversity, and inclusion.

“Our people and the culture we have built together are what make things happen at BCI,” said Fyfe. “I am proud of the strong results for our clients that we are announcing today, and I am honoured to lead our team of dedicated professionals.”

PUBLIC MARKETS
Public markets, composed of fixed income and public equity investments, represents $124.7 billion and accounts for 59.1 per cent of net assets under management.

BCI’s $78.0-billion fixed income program, up from $71.2 billion at the end of the previous fiscal year, accounts for 37.0 per cent of net assets under management. The program invests in public and private market debt and oversees our exposure to foreign currency. In the year’s highly dynamic market environment, our well-diversified program continued to outperform, led by our team’s strong credit selection skills and BCI’s ability to take on larger loan allocations. We continued to expand access to fixed income credit products and capabilities, notably through the Corporate Bond Fund and the Principal Credit Fund. We also surpassed more than $3 billion in total historical sustainable bonds involvement, compared to $1.4 billion in fiscal 2021. BCI’s strategies in fixed income will lead to an estimated cumulative participation of $5 billion in sustainable bonds by 2025.

Our $64.3-billion public equities program, a decrease from $66.6 billion in fiscal 2021, represents 30.5 per cent of net assets under management. The program delivered positive returns as markets continued to rally from 2020 lows. Despite exceptional gains, equity market volatility persisted, influenced by the COVID-19 pandemic and the Russian government’s invasion of Ukraine. In response to rapidly evolving market conditions, we remained focused on our investment process and long-term perspective. During the fiscal year, the program passed a key milestone, as equities actively managed internally surpassed active external equities.

In addition to fixed income and public equities, our public markets team manages a funding program representing $17.6 billion, or (8.4) per cent of total liabilities under management.

PRIVATE EQUITY
Private equity represents $24.8 billion and 11.8 per cent of net assets under management, compared with $20.7 billion at the end of the previous year.

The program invests directly in private companies on our own and with strategic partners, and indirectly through our fund investments. It focuses on the business services, consumer, financial services, healthcare, industrials, and technology, media, and communications sectors.

In year ended December 31, 2021, record levels of deal activity and demand for private equity assets provided opportunities to lock in attractive returns in both our direct and fund portfolios. Well-timed partial and full exits from direct investments supported the year’s strong performance.

Through strategic secondary sales, we sold approximately 70 funds during the year, thus freeing up approximately $2 billion in capital to redeploy into our key, high performing strategic managers who support sourcing of our direct opportunities. The investment team committed $6.8 billion in total client capital, the most of any year for the program, including $2.2 billion in direct investments, and $4.6 billion in funds.

Total distributions for the year amounted to $8.5 billion — over $6 billion more than the previous year.

INFRASTRUCTURE & RENEWABLE RESOURCES
Our infrastructure & renewable resources program represents $20.2 billion and 9.5 per cent of net assets under management, compared with $20.0 billion at the end of the previous year. Through the year ending December 31, 2021, the investment team committed $2.0 billion in new opportunities for our clients.

The program makes material equity investments that allow BCI to pursue an active governance approach with our portfolio companies. The program is diversified by geographic region and sector and consists of a global portfolio of regulated utilities in the water, electricity, and gas sectors, as well as holdings in the digital infrastructure, power, and transportation sectors. The program also holds select investments in timberlands, farmlands, and agri-businesses.

The program saw strong capital appreciation of some of the largest assets in the portfolio, generated through both favourable market conditions and solid business operations. Outperformance in our timber portfolio was driven by robust demand for wood products, particularly within local markets. Increased consumer activity also bolstered our shipping and transportation portfolio which experienced elevated volumes and strong revenue growth throughout the year.

REAL ESTATE EQUITY AND REAL ESTATE DEBT
QuadReal Property Group (QuadReal), a company owned by BCI and created in 2016, actively manages our clients’ real estate equity and real estate debt (previously called mortgages) portfolios, representing $41.4 billion or 19.6 per cent of net assets under management.

The $33.6-billion real estate equity program accounts for 15.9 per cent of BCI’s assets under management, compared to $28.5 billion at the end of fiscal 2021. Performance was buoyed by strong returns and capital value growth in the second half of 2021, specifically led by momentum in the industrial and residential sectors. Outperformance in the industrial sector was driven by the expansion in e-commerce, with retailers, third-party logistics companies, and other operators competing for coveted warehouse space. Strong valuations in the global real estate equity portfolio also contributed to the returns.

The health and safety of tenants, residents, and front line QuadReal staff continued to be of paramount importance through each wave of the pandemic. As a positive sign of how organizations are adapting, occupancy is at encouraging levels across nearly the entire portfolio, with the industrial portfolio currently sitting at full occupancy.

The $7.8-billion real estate debt program accounts for 3.7 per cent of BCI’s net assets under management, compared to $7.0 billion at the end of fiscal 2021. The program underwent a name change this year to reflect the broader scope of QuadReal’s real estate debt expertise beyond only mortgages. QuadReal deployed a record amount of client capital this year; however, as was witnessed across the private credit industry, the program also experienced significantly higher-than-expected early repayments. This was driven by a combination of low market interest rates and substantial lender appetite, which enabled borrowers to refinance their loans at lower cost. A prudent and disciplined approach led to outperformance for the year, despite a competitive and crowded marketplace.

OUR COSTS
BCI is committed to maintaining fiscal discipline as we continue to expand our global footprint. Our active, in-house asset management model requires robust systems and processes, and a growing complement of specialized expertise. Cost advantages arise from the economies of scale of managing $211.1 billion, pooling assets, and managing 80.6 per cent of assets in-house. Continuing to invest in our internal capabilities is the most significant lever BCI has for reducing the total cost to our clients of value-added active management.

BCI’s total costs, consisting of internal, external direct, and external indirect costs, were $2.2 billion or 1 dollar and 8.1 cents per $100 of assets under management for fiscal 2022, all of which are netted against investment returns. This compares to total costs of $1.6 billion or 88.5 cents per $100 in fiscal 2021. The increase in costs was driven primarily by strong performance and value-add in private equity and real estate, which resulted in higher external costs on the proportion of assets managed externally. While strong performance results in higher fees paid to external managers through profit-sharing agreements, our clients retain most of the value added by these managers.

INVESTMENT AND CORPORATE HIGHLIGHTS

• Disbursed $9.2 billion in distributions to our clients compared to $8.6 billion in F2021. Increased distributions were primary generated by record level activity in our private equity portfolio.
• Welcomed two new clients: Municipal Retiree Benefit Trust (MRBT) and Innovate BC; adding $117 million to assets under management.
• Obtained an “excellent” rating in our most recent biennial client satisfaction survey, for integrity and professionalism with overall high client satisfaction rating.
• Reached $3.1 billion in cumulative historical participation in sustainable bonds, compared to $1.4 billion in fiscal 2021.
• As part of a consortium, announced the upcoming acquisition of two investments, Reden Solar and National Grid PLC gas transmission business, that will play a critical role in helping Europe achieve its energy transition aspirations.
• Committed $6.8 billion in total client capital for private equity investments, the most of any year for the program, including $2.2 billion in direct investments, and $4.6 billion in funds.
• Joined more than 100 private equity investors in committing to the ESG Data Convergence Project, which aims to advance a standardized set of ESG metrics in private markets.
• Received the Canadian Investment Review 2021 Pension Leadership Award for Sustainable Investing, the 2021 Responsible Investment Association Leadership Award for Integration, and achieved a top spot in the Responsible Asset Allocator Initiative’s 2021 Leaders List of the 30 Most Responsible Asset Allocators.
• Ranked 10th in Infrastructure Investor’s 2021 Global Investor 50 – a list of the largest institutional investors in global infrastructure. This is the third consecutive year we are in the top 10, and we have been included in the list each year since its inception in 2018.
• QuadReal committed $8.7 billion to new real estate commitments, the highest level ever
• QuadReal has 26 ENERGY STAR-certified buildings across Canada, reflecting an ongoing commitment to excellence in sustainability and received the inaugural ENERGY STAR® Canada Award for Commercial Building of the Year.
• QuadReal developed new lending relationships, while aligning resources within, to benefit from broader market participation in more investment opportunities alongside the real estate teams in the United States and Canada
• Made significant strides in implementing our Equity, Diversity, and Inclusion (EDI) Strategy.
• Recognized for a third straight year as one of Canada’s Top 100 Employers, Top Family-Friendly Employers, and B.C.’s Top Employers.
• Expanded mental and physical health and wellness offerings, providing employees with virtual medical and counselling services, and a physical activity reimbursement program for sporting activities and equipment.

ABOUT BCI
British Columbia Investment Management Corporation (BCI) is amongst the largest institutional investors in Canada with C$211.1 billion under management, as of March 31, 2022. Based in Victoria, British Columbia, with offices in Vancouver and New York City, BCI is invested in: fixed income and private debt; public and private equity; infrastructure and renewable resources; as well as real estate equity and real estate debt through our independently operated platform company QuadReal Property Group. With our global outlook, we seek investment opportunities that convert savings into productive capital that will meet our clients’ risk and return requirements over time. This compels us to integrate long-term ESG matters into all investment decisions and activities. BCI’s clients include pension plans representing over 715,000 plan members, insurance funds providing more than three million Autoplan insurance policies annually, benefits coverage to more than two million workers and 225,000 companies, and special purpose funds within BC’s public sector. Founded in 1999, BCI is a statutory corporation created by the Public Sector Pension Plans Act.

CONTACT
Gwen-Ann Chittenden, Vice President, Corporate Stakeholder Engagement
media@bci.ca

https://corporateannualreport.bci.ca/

Follow us on LinkedIn

Victoria, BC – BCI is honoured to receive the Naden Band Spirit of Excellence Award from the United Way of Southern Vancouver Island (UWSVI). This distinguished award recognizes an organization with a long-standing commitment to the UWSVI that has achieved incredible results in funds raised, employee engagement, and community impact.

“We are honoured to have the support and partnership of BCI and their employees,” said Mark Breslauer, chief executive officer at the UWSVI. “The corporation’s workplace campaigns are an example for everybody, and we are excited to present the Naden Band Spirit Award of Excellence in recognition of BCI’s significant long-term achievements with United Way. We are truly grateful. On behalf of those helped, thank you.”

As the provider of investment management services for the province’s public sector, all BCI employees share the same sense of purpose to build meaningful futures for British Columbians. For many of our people, this passion is reflected in how they give back to our local communities.

Since 2000, BCI employees have organized an annual giving campaign that has increased awareness and raised more than $1.2 million for the UWSVI. These funds have supported counselling services for those with mental health concerns, programs for new parents, financial literacy training, and other important initiatives that support the community that many of our employees call home.

“This recognition belongs to our generous employees and the many phenomenal campaign committees we’ve had over the years,” said Shauna Lukaitis, chief operating officer at BCI and longstanding executive sponsor for BCI’s United Way campaign committee. “Their passion, dedication, and creativity has created a culture of caring and inspired so many people to get involved, making our community a better place for everyone.”

In addition to receiving the Naden Band Spirit of Excellence Award for our longstanding community leadership, BCI was nominated for UWSVI Spirit Awards in the categories of Leadership Giving, Outstanding Employee Campaign Chair, Outstanding Workplace Campaign, and the Triple Crown Award. These nominations reflect the commitment of our corporate-wide United Way campaign committee, who ran an engaging campaign in fall 2021, raising nearly $58,000 despite many employees continuing to work remotely due to the COVID-19 pandemic.

BCI helps create strong, healthy communities for all where we live and work through a wide range of causes and organizations our employees care about. Beyond fundraising and sponsorship initiatives, BCI employees receive paid time off each year to volunteer with an organization of their choice.

For more information about the work of UWSVI or to make a donation, please visit www.uwsvi.ca

Media Contact:

media@bci.ca

Victoria, BC – British Columbia Investment Management Corporation (BCI) and JA British Columbia (JABC) are pleased to announce BCI’s sponsorship of financial literacy programs intended for Indigenous youth across the province.

This sponsorship will support programs such as Dollars with Sense and more that teach financial literacy and entrepreneurial skills to help prepare students for life and work. By partnering with JABC, BCI can help to provide support for more students in Indigenous communities to take part in programs taught by Indigenous volunteers.

“We continue to build up and expand our programs to reach more Indigenous youth living in-community,” said Kimberly Sommer, program director of Indigenous communities at JABC. “Our annual target of 30 Indigenous programs has nearly doubled since January. Thanks to the support of donors and sponsors such as BCI, we aim to provide many more programs to Indigenous schools and communities next year.”

Since 2014, more than 60 employees from across BCI have volunteered their time to deliver over 100 programs with JABC. In 2019, members of BCI’s public markets department established an internal financial literacy committee to develop a deeper partnership with JABC and to continue to expand BCI’s work in furthering financial literacy. Together, these volunteers have reached an estimated 2,600 students ranging from grade four to 12. BCI supports access to education that empowers youth and adults to build foundational financial skills, as well as gain exposure to the possibility of a career in finance. This sponsorship recognizes and encourages the growing number of BCI employees contributing time through classroom and virtual program deliveries.

“As one of Canada’s largest investment managers, BCI appreciates the impact that developing financial acumen, understanding money management, and long-term planning have on the life of every individual,” said Sarah Dorrington, associate, partnership portfolio, public markets at BCI, JABC volunteer, and co-founder of BCI’s internal financial literacy committee. “JumpStart Coalition for Financial Literacy recently reported that only 26 per cent of young people ranging from 13 to 21 were taught by their parents how to manage money. BCI’s volunteer work with JABC over almost a decade helps us to further give back to our communities in a meaningful way.”

About JA British Columbia

JABC is a member of JA Canada and JA Worldwide. As the first JA charter in Canada and JA’s first international chapter, JA has been a leader in youth business education programs for over 65 years. We are dedicated to preparing people who will create and shape the jobs of the future, foster stable economies, contribute to a healthy community and enjoy lifelong success. Our programs focus on financial literacy, work readiness and entrepreneurship and are requested by educators across British Columbia. Thanks to the funding of generous donors, programs are delivered, free of charge, by local volunteers who provide their real-life experiences to students.

About BCI

With $199.6 billion of managed assets as of March 31, 2021, British Columbia Investment Management Corporation (BCI) is a leading provider of investment management services to British Columbia’s public sector and one of Canada’s largest asset managers. BCI generates the investment returns that help their institutional clients build a financially secure future. With a global outlook, BCI seeks investment opportunities that convert savings into productive capital that will meet their clients’ risk and return requirements over time. BCI invests across a range of asset classes: fixed income; mortgages; public and private equity; real estate; infrastructure; and renewable resources.

Media Contacts

JA British Columbia news@jabc.org

BCI media@bci.ca

BCI is pleased to announce the appointment of Michel Drolet as senior vice president, corporate risk & audit and chief audit executive. As head of the newly formed corporate risk & audit department, Michel is responsible for supporting the strategic oversight of the corporation’s enterprise risk management, internal controls, and internal audit functions.  

The department’s mandate is to strengthen and protect BCI’s organizational value by providing assurance, advice, and insight on BCI’s risks and control practices. Bringing together three complementary branches enables this division to work together to enhance enterprise risk awareness, responsiveness, and decision-making. To preserve the independence of the internal audit function, Michel has a dual reporting relationship to the chair of BCI’s audit committee and to the chief operating officer.  Additionally, BCI outsources all audits of functions under his oversight. 

“Establishing this department supports BCI’s vision to align risk strategies and create risk synergies that benefit the entire corporation,” said Shauna Lukaitis, chief operating officer, British Columbia Investment Management Corporation. “Michel is a proven leader, who has done an outstanding job leading the internal audit team since joining BCI in 2018. He is a trusted subject matter expert on risk considerations and with his sponsorship, we will see a proactive approach to risk monitoring, reporting, and advising.”  

“I’m excited for the opportunity to lead this new department, which will enhance BCI’s corporate risk mitigation and management capabilities, and ultimately help us to better support our business plan objectives and client needs,” said Michel Drolet, senior vice president, corporate risk & audit and chief audit executive, British Columbia Investment Management Corporation. “By integrating risk, audit, and control advisory functions, we can develop a more holistic view of organizational risk and deliver relevant and timely information for internal and external stakeholders.”  

Michel holds a bachelor of business administration from the University of British Columbia. He is a Chartered Professional Accountant (CPA, CMA) and a Certified Internal Auditor (CIA). Michel is currently a CFA® Program participant, CFA Institute, and completed level 2 in 2021. 

BCI welcomes Michel to the senior leadership team. More information about BCI’s senior vice presidents can be found here.  

For information, please contact media@bci.ca 

BCI is pleased to announce the reappointment of both Gayle Gorrill and Peter Milburn to BCI’s Board of Directors by the Minister of Finance, the Honourable Selina Robinson.

Gayle was first appointed to BCI’s Board in 2018, and her term has been extended to June 18, 2025. Gayle is chair of the audit committee.

Gayle holds the ICD.D designation from the Institute of Corporate Directors, as well as bachelor of business administration and received her chartered accountant (CPA CA) designation in 1985, becoming a Fellow of the CPA CA in 2016. Gayle has primarily spent her career in university finance and operations, and was the first woman to hold the role of vice-president finance and operations at the University of Victoria. After 15 years in this role, Gayle has recently retired.

Peter was first appointed to BCI’s Board in 2016, and his term has been extended for an additional year, ending December 31, 2023. Peter has held the role of chair since his appointment.

Most recently he fulfilled the role of Deputy Minister of Finance and Secretary to Treasury Board. Prior to that appointment, Peter built his career within the BC Ministry of Transportation and retired after 33-years in various roles such as Deputy Minister, Chief Operating Officer, and Executive Project Director for the Sea to Sky Highway Improvement Project. Peter holds a bachelor of applied science degree in civil engineering from the University of British Columbia.

When asked about his time as chair for BCI’s board, Peter said, “It’s been a very rewarding role and I look forward to another year in this capacity. The transformation BCI has undergone during my time on the board has been monumental. It’s been a privilege to advise on, and witness, the amazing work management and staff do to help so many British Columbians secure their financial futures.”

Our board is structured in accordance with the Public Sector Pension Plans Act. Of the seven-member Board, BCI’s four largest pension plan clients each appoint a member from their board of trustees, and the Minister of Finance appoints the other three — two of which must be representatives of clients.

More information about BCI’s Board of Directors and further biographical information can be found here.

NEW YORK, N.Y. – The Pension Fund Coalition for Inclusive Capitalism, an initiative of the Coalition for Inclusive Capitalism and the Ira M. Millstein Center for Global Markets and Corporate Ownership at Columbia Law School, today released an open resource to help pension funds structure contract language establishing minimum environmental, social and governance (ESG) guidelines in investment agreements with asset managers.

The Pension Fund Coalition has developed model ESG contract language for use in asset owner-manager agreements, encompassing a range of approaches to pension fund investments in public and private equity markets. The resource is intended to protect against superficial implementation of impact-oriented standards and afford asset owners the ability to direct their asset managers to invest in line with their priorities.

“For capitalism to be inclusive and sustainable, capital must work for the long term,” said Lynn Forester de Rothschild, Founder of the Coalition for Inclusive Capitalism and Founding and Managing Partner at Inclusive Capital Partners. “The most powerful lever of investment change lies with asset owners, who can steer investment toward sustainable business and continue to provide value for their beneficiaries.”

The Pension Fund Coalition, co-chaired by Theresa Whitmarsh and Hiro Mizuno, collaborated with public pension fund managers and legal advisors to provide pension funds and other asset owners a guide for structuring ESG provisions in investment agreements. The tools include model ESG mandates, reporting requirements and sample ESG criteria, which pension funds can use as a baseline for negotiating ESG provisions in the context of asset manager relationships.

“Most public pension funds, have little control over how – or whether – their assets are invested with ESG guidelines. The model language addresses this gap by ensuring long-term value creation standards are upheld,” said Hiro Mizuno, United Nations Special Envoy on Innovative Finance and Sustainable Investments and former Chief Investment Officer of the Japan Government Pension Investment Fund, the world’s largest pension fund.

The model language is designed for ease of use and can be tailored to asset owners’ ESG and long-term investment priorities. Flexible across a range of scenarios, approaches and public or private markets, it offers portfolio and legal teams pragmatic ESG tools for:

• Model mandates
• Voting rights
• Reporting requirements
• Sample ESG factors and criteria

The resource also includes guidance for fund managers and legal teams on other key considerations in determining ESG objectives within their broader investment agreements.

“As asset owners, those who oversee pension plans are distinctly focused on the long term. In the interests of beneficiaries and future retirees, pension fund fiduciaries are looking for better ways to address the integration of social and environmental factors as part of successful sustainability,” said Theresa Whitmarsh, Co-Chair of the Millstein Center, Chair of FCLTGlobal, and former Executive Director of the Washington State Investment Board. “With these tools, pension funds will have more ways to ensure that their capital is being deployed by asset managers in strategies that fit with a preferred approach to sustainability and ESG integration.”

Pension fund managers familiar with the work added the following:

“It’s important that large asset owners, including pension funds, treasurers, and endowments, know how to structure an optimal relationship with their investment managers,” said Illinois State Treasurer Michael Frerichs. “Asset owners have a vested interest ensuring that their managers are using best-in-class practices that add value and serve their needs. This includes the integration of ESG factors into investment decisions, the adoption of strong proxy voting practices, and the provision of robust reporting on investment management and stewardship activities. The model language published today will help investors structure strong relationships with their managers and it will help create uniform standards across the market.”

“Pension investors and asset managers must create long-term value for clients and beneficiaries by considering social and environmental outcomes,” said Gordon J. Fyfe, Chief Executive Officer and Chief Investment Officer at British Columbia Investment Management Corporation (BCI). “Standard tools like model mandates can support the approach portfolio managers take to consistently apply ESG principles.”

About the Coalition for Inclusive Capitalism
The Coalition for Inclusive Capitalism is a global not-for-profit organization dedicated to making capitalism work for everyone. The Coalition partners with private, public, and civic sector leaders on initiatives to make capitalism inclusive and its benefits more widely shared. Learn more at www.coalitionforinclusivecapitalism.com

About the Ira M. Millstein Center for Global Markets and Corporate Ownership
Building on Columbia Law School’s longstanding strength in corporate and securities law, the Millstein Center operates at the forefront of new thinking about how corporations are governed. The center engages with business leaders and board directors to create meaningful dialogue about the challenges companies face, and serves as a focal point for the most innovative research into the policy solutions required to tackle those challenges. Learn more at www.millstein.law.columbia.edu