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RBC Global Asset Management Inc. (“RBC GAM Inc.”) announced that RBC Canadian Core Real Estate Fund (the “Fund”) successfully completed the third phase of its multi-year investment program on October 29, 2021, comprising an acquisition of over $700 million in real estate assets. Additionally, the Fund earned a ranking of first in Canada in the “Diversified” category for non-listed, standing investments, and was named as an “Overall Regional Sector Leader” in the Americas in its inaugural Global Real Estate Sustainability Benchmark (“GRESB”) assessment.

THIRD CLOSING OF THE FUND
The third closing of the Fund exceeded its target by raising over $450 million in equity subscriptions, continuing its phased investment strategy with British Columbia Investment Management Corporation (“BCI”) and QuadReal Property Group (“QuadReal”). The Fund, created based on an aligned partnership with BCI and QuadReal, provides investors with access to one of Canada’s largest, highest quality and most diversified commercial real estate portfolios, with assets located in key cities across the country. After the closing on October 29, 2021, the Fund has $2.7 billion in assets under management, and an ownership share in 62 assets valued at over $3.4 billion (at share), with BCI owning the remaining interest in the $9+ billion portfolio. QuadReal will continue to operate and manage the properties.

2021 GRESB REAL ESTATE ASSESSMENT
In its inaugural assessment by GRESB, the Fund was recognized as an “Overall Regional Sector Leader” in the Americas due to its strong performance relative its peer group¹. The GRESB Sector Leader Awards recognize real estate funds and assets that have demonstrated outstanding leadership in sustainability each year. In addition, the Fund was ranked first in Canada and fourth globally in the “Diversified” category for non-listed, standing investments, and was awarded a five-star rating² overall, demonstrating its commitment to sustainability excellence.

GRESB is an organization that provides standardized and validated Environmental, Social and Governance (ESG) data to financial markets. The GRESB assessments are guided by what investors and the industry consider to be material issues in the sustainability performance of asset investments, and are aligned with international reporting frameworks, goals and emerging regulations. The GRESB ESG Benchmark grew this year to cover more than $6.4 trillion of assets under management globally. For more information on the GRESB Assessment and Benchmark, visit https://gresb.com/nl-en/gresb-assessments/.

1 GRESB Sector Leaders are the best performers by sector, region, and nature of ownership from across the GRESB Assessments. The entity with the top GRESB score, as well as the entities with a score within 1 point of the top score, in a category are recognized as Sector Leaders. The RBC Canadian Core Real Estate Fund’s region is ‘Americas’, sector is “diversified’, and nature of ownership (legal status) is ‘non-listed.’ The Fund was 1st in Canada (out of 13), 2nd in the Americas (out of 86) and 4th globally (out of 246). https://gresb.com/nl-en/2021-real-estate-assessment-results/
2 The GRESB Rating is based on the GRESB Score and the quintile position an entity occupies relative to all entities participating in the GRESB Assessment globally. If an entity is placed in the top quintile, it is rated GRESB 5 Star. Each year, only 20% of entities receive this rating. GRESB 5 Stars is the highest rating and recognition for being an industry leader.

“Since launching RBC Canadian Core Real Estate Fund in 2019, we have experienced exceptional interest from clients, speaking to the quality of the portfolio as well as the alignment embedded in our partnership with BCI and QuadReal,” said Michael Kitt, Head, Private Markets and Real Estate Equity Investments at RBC Global Asset Management Inc. “Across RBC Global Asset Management’s investment platform, we believe that integrating environmental, social and governance considerations can enhance the long-term, risk-adjusted returns of the portfolios we manage for clients. The Fund’s strong GRESB ratings demonstrates our commitment to clients, and extends our focus on sustainability into private market assets.”

Remco Daal, President, Canadian Real Estate at QuadReal adds, “Incorporating progressive ESG management into all planning and decision making is a fundamental commitment we make to our clients, including BCI and RBC GAM Inc., and to the communities in which we are a part. We share the collective goal of achieving sustainable results. Validating our progress is a way in which we demonstrate this to ourselves and our stakeholders.”

This information is not intended to be an offer or solicitation to buy or sell securities. The Fund is offered by RBC GAM Inc. RBC GAM Inc. is a member of the RBC Global Asset Management group of companies and an indirect wholly owned subsidiary of Royal Bank of Canada.

Investments in alternative funds are speculative and involve significant risk of loss of all or a substantial amount of your investment. Investors should consult their professional advisors and consultants regarding any tax, accounting, legal or financial considerations before making a decision as to whether the Fund is a suitable investment for them.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 88,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-social-impact.

About RBC Global Asset Management
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC) and includes money managers BlueBay Asset Management and Phillips, Hager & North Investment Management. RBC GAM is a provider of global investment management services and solutions to institutional, high-net-worth and individual investors through separate accounts, pooled funds, mutual funds, hedge funds, exchange-traded funds and specialty investment strategies. The RBC GAM group of companies manage approximately $580 billion in assets and have approximately 1,500 employees located across Canada, the United States, Europe and Asia.

About QuadReal Property Group
QuadReal Property Group is a global real estate investment, operating and development company headquartered in Vancouver, British Columbia. Its assets under management total $61.2 billion. From its foundation in Canada as a full-service real estate operating company, QuadReal has expanded its capabilities to invest in equity and debt in both the public and private markets. QuadReal invests directly, via programmatic partnerships and through operating companies in which it holds an ownership interest.

QuadReal seeks to deliver strong investment returns while creating sustainable environments that bring value to the people and communities it serves. Now and for generations to come.

QuadReal: Excellence lives here.

www.quadreal.com

For more information, please contact:
Brandon Dorey, RBC GAM Corporate Communications, 416-955-7397

[Toronto, ON – October 25, 2021] – Citing their fiduciary responsibility, 36 institutional investors managing $5.5 trillion in assets have signed a new Canadian Investor Statement on Climate Change. The Statement, signed by asset management divisions of five of Canada’s largest banks along with major institutional investors such as the Ontario Pension Board, calls on companies to act on material climate risks including through their industry association and lobbying activities.

Coordinated by the Responsible Investment Association (RIA), the Statement also makes clear the actions major Canadian investors will take to advance the global pursuit of net zero ahead of the most important climate gathering in history – COP26. This includes disclosing their financed emissions and setting an expectation that their investees will establish emissions targets and report on their progress.

“By centering reconciliation and a just transition, this statement adds a Canadian perspective that is missing from the global conversation,” says Dustyn Lanz, RIA CEO. “The signatories recognize that Canada’s path to net zero depends on a transition that leaves no one behind and supports the transformation of every sector, while aligning itself with Indigenous rights for self-determination.”

RIA worked closely with the Reconciliation and Responsible Investment Initiative (RRII) in the development of the Statement to ensure Indigenous perspectives are incorporated into the Statement. “Despite Indigenous Peoples often being the first and most affected by the climate crisis, Indigenous perspectives and voices are often left out of investors’ decision-making on climate action,” says Mark Sevestre, Founding Member of NATOA. “This raises the stakes of the transition to a low carbon economy for Indigenous Peoples. For the transition to be just in Canada, Indigenous Peoples’ rights and perspectives need to be centred and prioritized.”

Like their counterparts across the world, Canadian investors are also sending an unequivocal message to companies and governments that disclosure is key to maintaining and growing private investment in the low-carbon transition of our industries. “For the investment community, clear, comprehensive, comparable data isn’t a nice to have, it’s a must,” says Lanz.

“Ultimately, this is an invitation from Canadian investors to Canadian businesses to navigate this transition together,” explains Lanz. “The investment community is stepping up its game, so that the business community steps up theirs.”

The Statement remains open to additional investor signatories and Lanz expects this list will continue to grow as we approach a “tipping point” for sustainable finance momentum in Canada.

To learn more and read the full statement visit: https://www.riacanada.ca/investor-statement-climate-change/

The RIA would like to thank Jamie Bonham, Rosa van den Beemt, Delaney Grieg, Maia Becker, Susan Golyak and Reconciliation and Responsible Investment Initiative (RRII) for their individual contributions to the Statement.

Quotes from Signatories and Supporting Organizations

“Institutional investors manage their clients’ assets, yet they are also in a position to play a key part in the quest for net zero emissions by 2050. As COP26 approaches, the financial industry should spare no effort in underscoring the urgency of the situation and in helping to prevent irreversible damage to the environment. The Canadian Investor Statement on Climate Change allows us to put this crucial matter in the spotlight.” Roger Beauchemin, Chair of the Board, RIA and President and CEO of Addenda Capital

“Collaboration across the institutional investment community is essential to driving change, as we seek a just transition to a net-zero economy. As an asset manager and investor, and steward of our clients’ assets, RBC Global Asset Management uses stewardship to communicate our views and expectations with issuers on climate actions, outcomes and disclosures. We look forward to our continued partnership with the RIA and other like-minded investors on this important initiative.” – Maia Becker, Director, Corporate Governance and Responsible Investment, RBC GAM

“The Canadian Investor Statement on Climate Change sends an important message to the Canadian business community that climate change poses a systemic risk to the Canadian economy, and as investors, we are hopeful that the businesses we invest in put forward credible plans to achieve net zero carbon emissions by 2050.” – Priti Shokeen, Head of ESG Research and Engagement, TDAM

“As Canadian investors, we recognize the importance of transitioning Canada to a low-carbon economy in a way that is just and informed by Indigenous perspectives. BMO GAM has a long history of active involvement in global climate initiatives, and we are pleased to show our support through this statement alongside many of our Canadian peers. We look forward to continuing to advance climate action in our investments, engagements, and industry.” – Nalini Feuilloley, Head of Responsible Investment, BMO GAM

“At Desjardins, the climate crisis is a top priority because we’re committed to ensuring the well-being of our communities, now and in the future. That’s why we’re joining forces with members of Canada’s financial industry to speed up the transition to a low-carbon economy. Our day-to-day operations are already carbon neutral. Our goal now is to achieve net zero emissions by 2040 in our procurement and lending activities and our own investments in 3 key carbon-intensive sectors: energy, transportation and real estate.” – Guy Cormier, President and CEO, Desjardins Group

“BCI is committed to seeing our clients capitalize on opportunities for value creation while mitigating the physical and transition risks associated with climate change. The Canadian Investor Statement on Climate Change represents another important step in making clear our expectations of the companies in which we invest while reinforcing our commitment to supporting the transition to a lower-carbon economy.” -Gordon J. Fyfe, CEO and CIO, British Columbia Investment Management Corporation (BCI)

“There is no simple or easy path to net zero, but we have to combine forces and harness our energies for the journey. This statement represents that collective ambition. NEI Investments is proud to be a signatory to the Canadian Investor Statement on Climate Change, and we look forward to working with our peers to drive progress toward a net-zero future.” – Jamie Bonham, Director, Corporate Engagement, NEI

List of Signatories

Addenda Capital MD Financial Management
Amundi National Bank Investments
Bâtirente McConnell Foundation
BMO Global Asset Management Inc. NEI Investments
British Columbia Investment Management Corporation Ninety One
British Columbia Municipal Pension Board of Trustees Ontario Pension Board
British Columbia Public Service Pension Board of Trustees Pacifica Partners Inc.
Caisse de dépôt et placement du Québec Pension Plan of The United Church of Canada
Canada Post Corporation Pension Plan Rally Assets Inc.
CIBC Asset Management RBC Global Asset Management
Desjardins Group Simon Fraser University
ELFEC TD Asset Management Inc. (TDAM)
Gestion FÉRIQUE The United Church of Canada
Honeytree Investment Management The United Church of Canada Foundation
IG Wealth Management Trottier Family Foundation
Investment Management Corporation of Ontario (IMCO) University of Toronto Asset Management (UTAM)
Jarislowsky Fraser Global Investment Management University Pension Plan
Mackenzie Investments Vancity Investment Management Ltd. (VCIM)

List of Supporting Organizations

Æquo, Shareholder Engagement Services MICA Cabinets de services financiers
Edgewater Financial Products RE Royalties Ltd.
Fin-ML/IVADO Stephen Whipp Financial
Good Investing The Silicz Wealth Management Team
Impact Wealth TMX Group
Institute for Sustainable Finance, Smith School of
Business, Queen’s University
Toronto Finance International (TFI)
Ivey Foundation
Johnny Fansher Financial
Libro Credit Union

About the Responsible Investment Association

The Responsible Investment Association (RIA) is Canada’s industry association for responsible investment. The RIA’s membership includes asset managers, asset owners, advisors, and service providers who support its mandate of promoting responsible investment in Canada’s retail and institutional markets. Learn more at www.riacanada.ca.

Media contact
Ashley Kenley
Argyle PR for Responsible Investment Association
akenley@argylepr.com
647-967-9324

Adams Outdoor Advertising is one of the largest out of home media operators in the U.S.

The partnership positions Adams to capitalize on the significant growth opportunity in the U.S. out of home advertising industry and across Adams’ local markets.

New York, NY: Searchlight Capital Partners, L.P. (“Searchlight”), a leading global private investment firm, in partnership with British Columbia Investment Management Corporation (“BCI”), one of the largest asset managers in Canada, today announced the signing of a definitive agreement for a strategic investment into Adams Outdoor Advertising (“Adams”). Terms of the transaction were not disclosed.

Adams, founded in 1983 by Steve Adams, is the fourth largest, and largest privately-held, out of home media operator in the United States. The family-owned business has been instrumental in promoting the power of outdoor advertising by providing clients with bespoke media solutions to target audiences at the local level. Adams operates in a number of strategically relevant local markets across the states of Illinois, Michigan, North and South Carolina, Pennsylvania, Virginia and Wisconsin.

“Out of home plays an important role in the infrastructure of the advertising ecosystem, particularly given the unique and differentiated capabilities that the medium offers for local businesses, governments and economies,” said Darren Glatt, Partner at Searchlight. “As one of the leading investors in the media and technology sectors, Searchlight has been at the forefront of the ongoing evolution of the broader advertising ecosystem. We believe Adams is strongly positioned to continue to capture opportunities presented by the digital transformation of its estate. We look forward to working with Kevin Gleason and his team to further drive Adams’ growth through (i) expanding its footprint, (ii) developing new digital sites, (iii) capitalizing on emerging opportunities around programmatic and technology innovation and (iv) executing on strategic M&A.”

Dave Hong, Senior Managing Director, Private Equity at BCI, added: “We are excited to work with Kevin Gleason, his management team and Searchlight, to support the company’s growth. Our investment in Adams aligns with BCI’s long-term investment approach of investing in stable industries that provide compelling risk-adjusted returns for our pension plan and insurance fund clients.”

Kevin Gleason, CEO of Adams, added: “We are delighted to partner with Searchlight and BCI to support Adams’ continued growth and to accelerate the development of our capabilities across various forms of emerging technology. We have always believed that outdoor advertising is more powerful than anyone has yet to imagine and believe that Searchlight’s demonstrated track record in the out of home and media sectors positions us to unlock that power and value for our clients and investors. We are thankful for the support of Searchlight and BCI and are confident that this marks the start of an exciting next chapter for our business, employees and local partners.”

Searchlight was advised by Barclays and Latham & Watkins. Weil, Gotshal & Manges served as separate legal counsel to BCI. Adams Outdoor Advertising was advised by PJ SOLOMON and Kaplan, Strangis and Kaplan.

-ENDS-

About Searchlight Capital Partners, L.P.

Searchlight is a global private investment firm with nearly $9 billion in assets under management and offices in New York, London and Toronto. Searchlight seeks to invest in businesses where its long-term capital and strategic support accelerate value creation for all stakeholders. For more information, please visit www.searchlightcap.com.

About Adams Outdoor Advertising

Adams Outdoor Advertising (“Adams”) is a privately owned company offering out of home and online media solutions. Adams offers unique and award-winning creative, audience-based multi-media sales expertise, and a people-first approach to client service. Adams boldly proclaims its mission of reinventing the medium known as outdoor by proving it to be more relevant and powerful than anyone has yet to imagine. By maintaining strong member relations with industry leaders such as Geopath and the OAAA, Adams employs data-driven media proficiency that raises the standard for out of home.

About BCI

With C$199.6 billion of assets under management as of March 31, 2021, British Columbia Investment Management Corporation (BCI) is one of Canada’s largest institutional investors. Based in Victoria, British Columbia, BCI is a long-term investor that invests across a range of asset classes: fixed income; public equities; private equity; infrastructure; renewable resources; real estate; and commercial mortgages. BCI’s clients include public sector pension plans, insurance, and special purpose funds. BCI’s private equity program, with C$20.7 billion of assets under management, has a well-diversified portfolio comprised of direct and fund investments. The team brings industry expertise with more than 40 investment professionals investing across financial and business services, healthcare, industrials, consumer, and TMT sectors.

We are pleased to announce that Weldon Cowan joined the BCI Board of Directors on September 1, 2021. The College Pension Board of Trustees has appointed Weldon for a three-year term.

Weldon is a labour relations specialist with the Federation of Post-Secondary Educators of BC (FPSE). He has completed the Advanced Trust Management Standards program and holds the ICD.D designation from the Institute of Corporate Directors.

Weldon was appointed a trustee to the College Pension Board in 2005 and has served in that position since then. He is currently Chair of the College Pension Board of Trustees and Chair of the Interplan Trustee Education Committee. Weldon was a director of the BC Pension Corporation from 2012 to 2019. During that time, he served as Chair of the BC Pension Corporation Board of Directors for four years and vice-Chair for three years.

Weldon holds a Bachelor of Science degree with a specialization in chemistry from Concordia University and a Diploma in education from McGill University. He taught French immersion science for over 15 years at the secondary level before joining FPSE.

Weldon succeeds Karen Maynes as the College Pension Plan member on the BCI Board. Karen has served as a director for the past seven years and as chair of the Audit Committee since 2018. As we welcome Weldon and look forward to his contributions, we also want to express our sincere thanks to Karen for her long-standing commitment to BCI’s governance.

Our board is structured in accordance with the Public Sector Pension Plans Act. Of our seven-member board, our four largest pension plan clients each appoint a member of their board. The other three directors are appointed by the Minister of Finance – two of which must be representative of clients.

For information, please contact communication@bci.ca

Middleton, WI; New York, NY; Victoria, BC; and Santa Monica, CA – Springs Window Fashions (“Springs”), one of the leading providers of custom window covering products in the world and portfolio company of AEA Investors LP (“AEA”) and British Columbia Investment Management Corporation (“BCI”), announced today that Clearlake Capital Group, L.P. (together with certain of its affiliates “Clearlake”) have entered into a definitive agreement to acquire Springs. Springs’ management team, led by CEO Eric Jungbluth, will continue to lead the company after the closing of the transaction.

Headquartered in Middleton, Wisconsin, Springs is a leading custom window treatments provider in the United States, where its suite of brands including Graber, Horizons, Bali, Mecho and SWFcontract are sold throughout various residential and commercial channels.

AEA and BCI acquired Springs in 2018. Since that time, Springs has achieved significant growth through product innovation, channel expansion, marketing and operational improvements. Additionally, AEA and BCI supported Springs’ global expansion with its acquisition of B&C International, based in The Netherlands, which took place earlier this year.

“We have appreciated the partnership with AEA and BCI during the past three years,” said Jungbluth. “Their support of our growth strategies and willingness to invest has been critical to our success. We look forward to continuing our growth with Clearlake.”

Brian Hoesterey, CEO of AEA Investors, said, “We are very pleased with the growth of Springs, whose success has surpassed the expectations set forth when first partnering with management three years ago. We are confident that the company is well positioned for a very bright future ahead.”

“Eric Jungbluth and the Springs team have delivered strong results for our pension plan and insurance clients by focusing on attractive growth initiatives,” said Jim Pittman, Executive Vice President & Global Head, Private Equity, BCI. “Springs is a great example of the value our investments bring to our clients.  We wish them well and ongoing success in the future.”

Deutsche Bank Securities Inc. is acting as lead financial advisor to the company. BofA Securities is also acting as financial advisor to the company. J.P. Morgan provided committed debt financing to Clearlake in support of the transaction.

The acquisition is subject to customary regulatory approvals and is expected to close in the third quarter of 2021.

ABOUT SPRINGS WINDOW FASHIONS 

Springs Window Fashions, the Best Experience Company, is a leading global supplier of blinds, shades, specialty treatments and window hardware. Its Bali®, Graber®, Horizons®, SWFcontract™, Mecho™, Mariak™, and SunSetter™ brands are sold through retailers and distributors within North America.  In Europe, the company manufactures and sells products through its B&C International division.  Based in Middleton, WI, Springs has facilities worldwide and employs more than 9,000 associates. For more information, visit www.springswindowfashions.com.

ABOUT AEA

AEA Investors LP was founded in 1968 by the Rockefeller, Mellon and Harriman family interests and S.G. Warburg & Co. as a private investment vehicle for a select group of industrial family offices with substantial assets. AEA has an extraordinary global network built over many years which includes leading industrial families, business executives and leaders; many of whom invest with AEA as active individual investors and/or join its portfolio company boards or act in other advisory roles. Today, AEA’s approximately 100 investment professionals operate globally with offices in New York, Connecticut, San Francisco, London, Munich and Shanghai. The firm manages funds that have over $15 billion of invested and committed capital including the leveraged buyouts of middle market companies and small business companies, growth capital and mezzanine and senior debt investments.

ABOUT BCI

With C$199.6 billion of assets under management as of March 31, 2021, British Columbia Investment Management Corporation (BCI) is one of Canada’s largest institutional investors. Based in Victoria, British Columbia, BCI is a long-term investor that invests across a range of asset classes: fixed income; public equities; private equity; infrastructure; renewable resources; real estate; and commercial mortgages. BCI’s clients include public sector pension plans, insurance, and special purpose funds. BCI’s private equity program, with C$20.7 billion of assets under management, has a well-diversified portfolio comprised of direct and fund investments. The team brings industry expertise with more than 40 investment professionals investing across financial and business services, healthcare, industrials, consumer, and TMT sectors. For more information about BCI, please visit www.bci.ca.

ABOUT CLEARLAKE

Clearlake Capital Group, L.P. is a leading investment firm founded in 2006 operating integrated businesses across private equity, credit, and other related strategies. With a sector-focused approach, the firm seeks to partner with world-class management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake’s operational improvement approach, O.P.S.^® The firm’s core target sectors are industrials, technology, and consumer. Clearlake currently has approximately $39 billion of assets under management, and its senior investment principals have led or co-led over 300 investments. The firm has offices in Santa Monica and Dallas. More information is available at www.clearlake.com and on Twitter @ClearlakeCap.

MEDIA CONTACT INFORMATION

Springs Window Fashions – Mower Public Relations:

Mary Gendron | 917.340.1006 | mgendron@mower.com

Jamie Scalici | 212.980.9194 | jscalici@mower.com

Highlights

• • One-year return of 16.5%
  • 10-year annualized return of 9.0%, representing $10.2 billion in added value
  • Five-year annualized return of 9.3%, representing $4.0 billion in added value
  • Assets under management increased by $28.3 billion to $199.6 billion in fiscal year 2021

VICTORIA, BC (July 26, 2021): British Columbia Investment Management Corporation (BCI) today published our Corporate Annual Report announcing we ended our fiscal year on March 31, 2021, with $199.6 billion of assets under management and delivered a 16.5 per cent one-year return for our combined pension plan clients, net of all fees. The $28.3 billion increase of assets under management reflects investment gains of $27.4 billion and $900 million of client net contributions.

“Thanks to the trust and confidence of our clients and the skill and commitment of our employees, we look back at a difficult and challenging year with a sense of accomplishment and pride,” said Gordon J. Fyfe, chief executive officer / chief investment officer of BCI.

“We managed through the market crisis while protecting the safety of our employees and doing our part to flatten the curve of COVID-19. Our investment performance reflects the strength and resiliency of the portfolios across the asset classes and our focus on owning quality companies for the long term.”

Over the past six years, BCI has transformed to an active in-house asset manager. We continue to focus on diversification across a wide range of asset classes to meet our clients’ long-term investment objectives and risk profiles. By generating reliable investment returns, our work supports pension benefits for 690,000 British Columbians, provides for stability in insurance premiums, and helps finance government programs.

Our long-term results remain the best measure of our performance – for every $100 a pension plan member receives in retirement benefits, on average, $75 is provided by BCI’s investment activity. Over the 10-year period, BCI has generated an annualized return for the combined pension plan clients of 9.0 per cent against a benchmark of 7.9 per cent, contributing $10.2 billion in added value. Our five-year annualized return is 9.3 per cent against a benchmark of 8.7 per cent, representing $4.0 billion in added value.

While BCI’s one-year return slightly lagged the combined market benchmark, our longer-term returns exceed our six major pension plan clients’ required actuarial rates of return that currently range between 5.65 per cent and 6.75 per cent, improving their funding ratios. Our clients entered the pandemic in a well-funded position – ranging from 103 per cent to 128 per cent – and, as a result, now have greater flexibility for longer-term planning and allocation of capital for the benefit of their members.

“Over the past six years, BCI has invested in our people and systems, focused on strengthening our processes, and built the resiliency of the team through business continuity planning and regular crisis management exercises,” said Gordon J. Fyfe.

“All of this came to fruition during the pandemic where the entire team successfully pivoted and adapted to a largely remote working environment while maintaining our focus on putting our clients first.”

As the pandemic started to impact the capital markets, BCI seamlessly transitioned our 590-member team, almost overnight, to a remote working environment. We employed our strategies for managing our clients’ portfolios in a downturn by ensuring sufficient liquidity and positioning our clients to capture investment opportunities within a dislocated market. We found high-quality opportunities without having to sell assets.

BCI maintained a diversified and disciplined approach to the market volatility associated with the COVID-19 pandemic. Prioritizing our clients’ long-term objectives prevented overreactions to temporary market movements. We avoided the short-term trends, high-risk gains, and riskier investments that drove the rapid market recovery in the fiscal first quarter.

Underpinning our success was our focus on employee health and safety. We adapted existing training and development programs to the virtual environment, introduced courses to equip staff with techniques for remote working, and offered new programs to support employee health and wellness.

At BCI, we believe a focus on diverse talent drives broad insight, a deeper understanding of our clients, and fosters a culture of inclusivity where employees can thrive. In fiscal 2021, we developed a three-year diversity and inclusion strategy and hired a manager of diversity and inclusion to further our commitment to accessing great talent, retaining our highly skilled people, driving business insight, and ultimately delivering long-term returns to our clients.

“We have reached a significant milestone in BCI’s history, ending the year with $200 billion in assets,” said Gordon J. Fyfe.

“Overall, fiscal 2021 demonstrated the success of BCI’s transformation, the strength of the portfolio, and the skill and commitment of the entire BCI team.”

Looking ahead, BCI is also releasing our fiscal 2022-2024 Business Plan. It will allow us to continue leveraging our competitive advantages to meet the needs of our clients. The plan outlines how we will build on our transformation with four strategic ambitions: strengthening our value to clients; optimizing risk-adjusted returns; leveraging technology; and developing our talent.

“At the core of our business, we will continue to manage towards achieving optimal risk-adjusted net returns. Behind the scenes, we will build on the foundation we laid by continuing to invest in our people, technology, and operational capabilities,” said Gordon J. Fyfe.

PUBLIC MARKETS

Public markets, composed of fixed income and public equity investments, represents $137.8 billion and accounts for 69.1 per cent of net assets under management.

BCI’s fixed income program represents $71.2 billion, up from $57.1 billion at the end of the previous fiscal year, and 35.7 per cent of net assets under management. The program invests in public and private market debt and oversees our exposure to foreign currency. In fiscal 2021, the program benefited from defensive positioning pre-pandemic, providing the ability to act on several opportunities within a dislocated market, resulting in a strong performance in relative and absolute returns. We continued diversifying investments through the Canadian Universe Bond Fund, Corporate Bond Fund, Government Bond Fund, and the Principal Credit Fund.

Our $66.6 billion public equities program, an increase from $55.7 billion in fiscal 2020, represents 33.4 per cent of net assets under management. Public equities delivered a solid performance in fiscal 2021 in an unprecedented volatile market environment. We took advantage of price dislocations and favourable conditions to buy quality assets at attractive prices for our clients. BCI initiated new positions and built on existing positions in the following pooled funds: Active Canadian Equity; Active Canadian Small Cap Equity; Active Global Equity; Active U.S. Small Cap Equity; Global Partnership Fund; and Thematic Public Equity.

The program continued internalizing active equities, increasing the amount of actively managed internal equities by transitioning more than $3.0 billion from external managers, and focusing on opportunities to invest directly in public companies.

In addition to fixed income and public equities, our public markets program manages $14.4 billion of leverage, representing (7.3) per cent of total assets under management.

PRIVATE EQUITY

Private equity represents $20.7 billion and 10.4 per cent of net assets under management, compared with $17.9 billion at the end of fiscal 2020. With a sector-focused strategy, the program committed $2.6 billion total during the calendar year 2020.

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

In fiscal 2021, the program invested $900 million in six direct investments diversified by sector and geography, and we committed $1.7 billion across 13 funds.

In addition, the program also completed a partial sale of a direct investment to a like-minded investor, providing realized cash proceeds of approximately $500 million and retaining a significant interest in the company as it continues to increase its market share.

The program capitalized on close relationships with management at portfolio companies and collaborated on best practices to protect the value of our clients’ investments. As well, BCI’s extensive networks and reputation as a trusted co-investor allowed the program to source new private market opportunities despite ongoing travel restrictions.

INFRASTRUCTURE & RENEWABLE RESOURCES

Our infrastructure & renewable resources program represents $20.0 billion and 10.0 per cent of net assets under management, compared with $18.3 billion at the end of fiscal 2020. Through the year ending December 31, 2020, the investment team reviewed opportunities across a variety of sectors and geographies – ultimately committing $2.0 billion on behalf of our clients.

Historically, the program has made 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 and transportation sectors. Timberlands, farmlands, and agri-businesses are also held within the program.

This past year, our holdings in the regulated utility sector performed well despite the global pandemic, with strong operational results and, in many cases, growing demand for their essential services. In addition, the program saw good overall performance from our agricultural and timberlands portfolio holdings.

Notable new investments included the acquisition of an ownership stake, alongside other institutional partners, in a high-quality portfolio of approximately 136,000 communication towers in India. In addition to being the country’s largest private market transaction, the portfolio provides a well-positioned platform to participate in further growth and development of the digital marketplace within India.

During the year, BCI further increased our investment in Teays River Investments LLC, a U.S.-based platform company with interests in multiple food and agricultural-focused businesses. The new capital allowed the company to complete the acquisition of Grimmway Farms – one of North America’s largest organic vegetable producers with activities across 65 organic crops and more than 135 seasonal and year-round product offerings.

REAL ESTATE AND MORTGAGES

QuadReal Property Group (QuadReal), a company owned by BCI and created in 2016, actively manages our clients’ real estate and mortgage investment portfolios. The two programs represent $35.5 billion or 17.8 per cent of net assets under management.

The $28.5 billion real estate program accounts for 14.3 per cent of BCI’s assets under management, compared to $25.5 billion at the end of fiscal 2020. After early-year volatility that led to lingering uncertainty through much of the year, QuadReal saw asset values stabilize and marginally rebound in certain sectors and geographies. There was a broadening rebound in both tenant and investment activity in the second half of 2020, with sizeable new commitments and acquisitions in Canada and internationally.

Despite the challenges of investing during a global pandemic, QuadReal is closer to reaching the objective of a 50/50 allocation between the Canadian and international real estate portfolios. BCI’s partnership in Canada with RBC Global Asset Management (RBC GAM) was extended, as planned, enabling both to partner on a portfolio valued at over $7.5 billion.

While maintaining low leverage levels, QuadReal accessed debt markets to capitalize on the low interest rate environment and investor demand for ESG-focused assets by issuing $750 million in green bonds through two offerings. Proceeds support QuadReal’s qualifying expenditures on green buildings, renewable energy, resource and energy efficiency, pollution prevention, clean transportation, and climate change adaptation.

The $7.0 billion mortgage program accounts for 3.5 per cent of BCI’s net assets under management, compared with $6.5 billion at the end of fiscal 2020. Many of QuadReal’s borrowers were impacted by the pandemic, particularly those with retail, hospitality, or service-related tenants. The team assessed all loans to determine repayment ability and risk in the circumstances. For some loans, they worked with borrowers to allow payment deferrals and loan extensions and to structure enhanced loan security and reporting where applicable. Three of the four mortgage funds within the mortgage program delivered positive results for the nine-month period from April 1 to December 31, 2020 and outperformed their benchmarks. QuadReal committed $688 million to the U.S. portfolio and $422 million to the Canadian portfolio, and developed new lending relationships.

Effective January 2021, BCI and QuadReal, in collaboration with our clients, consolidated the four mortgage pooled funds — Construction Mortgage Fund, Mezzanine Mortgage Fund, Fixed Term Mortgage Fund, and U.S. Mortgage Opportunity Fund — into one program, the BCI QuadReal Mortgage Program. By combining separate mortgage pools with similar investment objectives and characteristics, QuadReal will realize efficiencies and increase potential returns through diversification.

OUR COSTS

BCI is committed to maintaining fiscal discipline as we continue to expand our global investment 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 that come with managing $199.6 billion, pooling assets, and managing 77.3 per cent of assets in-house.

BCI’s total costs, consisting of internal, external direct, and external indirect costs, were $1.6 billion or 88.5 cents per $100 of assets under management for fiscal 2021, all of which are netted against investment returns. This compares to total costs of $1.3 billion or 79.0 cents per $100 in fiscal 2020.

INVESTMENT AND CORPORATE HIGHLIGHTS

• Partnered with global investors to acquire a telecom tower company, BCI’s first direct infrastructure investment in India
• Transitioned more than $3.0 billion from external managers to internally managed public equities
• Reached $1.4 billion in cumulative historical participation in sustainable bonds, compared to $439 million in fiscal 2020
• QuadReal issued $750 million in green bonds and is one of the top three Canadian issuers
• Launched our diversity and inclusion strategy to strengthen diversity and foster an inclusive culture at BCI
• Named as one of BC’s Top Employers and one of Canada’s Top 100 Employers for the second consecutive year
• Successfully transitioned a 590-member BCI team to a remote working environment
• Developed and implemented our F2022-F2024 Business Plan, outlining our four strategic ambitions: strengthening our value to clients; optimizing risk-adjusted returns; leveraging technology; and developing our talent.

For more information on BCI’s fiscal 2021 performance, please download our F2021 Corporate Annual Report here.

ABOUT BCI

With $199.6 billion of managed assets, British Columbia Investment Management Corporation (BCI) is the provider of investment management services to British Columbia’s public sector. We generate the investment returns that help our institutional clients build financially secure futures. As of March 31, 2021, BCI has 30 clients in three separate classifications: Pension Funds, Insurance Funds, and Special Purpose Funds. With our global outlook, we seek investment opportunities that convert savings into productive capital that will meet our clients’ risk/return requirements over time. We offer investment options across a range of asset classes: fixed income; public and private equity; infrastructure & renewable resources; real estate, and commercial mortgages. For more information, visit our website BCI.ca or follow us on LinkedIn.

CONTACT

Ben O’Hara-Byrne, senior manager, external stakeholder engagement,

communication@bci.ca

Victoria, British Columbia – British Columbia Investment Management Corporation (BCI) is pleased to announce the appointment of Ramy Rayes as acting executive vice president, investment strategy & risk. He is responsible for setting, implementing, and monitoring our clients’ investment strategies and providing independent advice to BCI’s stakeholders.

Rayes joined BCI in 2016 and previously served as vice president of strategic asset allocation, where he was responsible for research and recommendations related to clients’ asset allocation, investment strategies, and a wide range of other investment topics.

Rayes replaces Stefan Dunatov, who is joining the Abu Dhabi Investment Council (ADIC) in the role of chief strategist. Dunatov joined BCI in 2017 and helped expand BCI’s investment strategies and risk capabilities. Dunatov also represented BCI on several boards and committees, including the QuadReal board of directors.

“On behalf of our executive management team, I want to thank Stefan Dunatov for his strong support of our client objectives and his leadership and vision to evolve BCI’s approach to investment strategy and risk. We wish him tremendous success in his new role,” said Gordon J. Fyfe, BCI’s CEO/CIO.

“While it was a difficult decision to leave BCI, my family and I are very excited for this new opportunity and adventure. I have every confidence in Ramy Rayes’ leadership, and I know the team will continue to thrive in his capable hands until my replacement is found,” said Dunatov.

A comprehensive executive search for a permanent candidate to fill the role is currently underway. We expect to continue our existing delivery of services throughout this leadership change.

To enhance our private equity program, on July 1, 2021, BCI finalized a property lease in New York City (NYC) to establish our first office outside of Canada.

We have significant capital to deploy directly and with partners to our targeted sectors, including healthcare, industrials, financial services, technology and telecommunications, and business and consumer services. As a long-term, global investor, BCI has existing investment partnerships in NYC. Establishing a local private equity team in the largest global investment hub will foster new relationships, while generating additional opportunities to invest capital through our direct and fund investment programs.

The opening of this office is an important step in our evolution and delivery of our purpose: to contribute to the financial retirement security of our clients’ more than 675,000 pension plan members and to allow our insurance clients to provide coverage for over 2.5 million workers and 240,000 registered employers, as well as provide auto insurance to B.C. motorists.

We anticipate a possession date in early 2022 and will share more details as work to establish the office progresses.

Contact

Ben O’Hara-Byrne, Senior Manager, External Stakeholder Engagement.

778-410-7310, communication@bci.ca

NEW YORK – Gamut Capital Management, L.P. (“Gamut”), a leading New York-based middle market private equity firm, in partnership with British Columbia Investment Management Corporation (“BCI”), one of Canada’s largest institutional investors, announced they have signed a definitive agreement to invest in PS Logistics.

As the largest and fastest-growing flatbed transportation and full-service logistics provider in the United States, PS Logistics employs a “Driver-First” culture to transport general flatbed commodities with a specialization in irregular route service in the continental United States.

“The combination of our exceptional team, with the resources we will gain through our relationship with Gamut and BCI, will enable PS Logistics to accelerate our growth while continuing to provide best-in-class services to our customers,” said Scott Smith, CEO of PS Logistics.

Stan Parker, Founding Partner of Gamut, said, “We are excited to partner with Scott and his seasoned management team to enhance their market leading platform and accelerate their growth trajectory. As the leading player in the large and fragmented flatbed trucking market, PS Logistics’ dedicated drivers, expansive freight network and young fleet are poised to continue delivering great value to both new and longstanding customers in search of comprehensive cross-country coverage and services.”

“As a long-term investor, we seek market-leading companies with a demonstrated track record of creating shareholder value, like PS Logistics. We look forward to working with the founder-led management team and Gamut to support the company’s future growth”, said Aaron Papps, Senior Portfolio Manager at BCI. “The continued growth and success of PS Logistics will provide compelling risk-adjusted returns for our pension plan and insurance fund clients.”

Financial terms of the transaction are not disclosed. The transaction, which is subject to customary closing conditions, is expected to close in the third quarter of this year.

RBC Capital Markets, Credit Suisse and Deutsche Bank Securities Inc. served as financial advisors and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Gamut and BCI, and Weil, Gotshal & Manges LLP served as separate legal counsel to BCI. UBS Investment Bank served as exclusive financial advisor and Kirkland & Ellis LLP served as legal counsel to PS Logistics. RBC Capital Markets, Credit Suisse, Deutsche Bank Securities Inc. and Wells Fargo Bank, N.A. are providing financing commitments for the transaction, subject to customary terms and conditions.

About PS Logistics

Founded in 2004 and headquartered in Birmingham, AL, PS Logistics is one of the largest and fastest growing flatbed transportation and logistics providers in the United States. PS Logistics provides full-service transportation services, including asset-based transportation, non-asset-based transportation, brokerage, third-party logistics managed transportation, warehousing, and supply chain services. This hybrid model delivers optimal flexibility to address customer’s flatbed transportation needs across various industries throughout the United States. For more information, visit: www.pslogistics.com.

About Gamut Capital Management

Gamut Capital Management is a New York-based private investment firm managing $1.2 billion in assets focused on the middle market. Founded in 2015, senior deal professionals have executed investments in over 50 companies in North America and Europe. To learn more, please visit www.gamutcapital.com.

About BCI

With C$171.3 billion of assets under management as of March 31, 2020, British Columbia Investment Management Corporation (BCI) is one of Canada’s largest institutional investors. Based in Victoria, British Columbia, BCI is a long-term investor that invests across a range of asset classes: fixed income; public equities; private equity; infrastructure; renewable resources; real estate; and commercial mortgages. BCI’s clients include public sector pension plans, insurance, and special purpose funds. BCI’s private equity program, with C$17.9 billion of assets under management, has a well-diversified portfolio comprised of direct and fund investments. The team brings industry expertise with more than 30 investment professionals investing across financial and business services, healthcare, industrials, consumer, and TMT sectors. For more information about BCI, please visit www.bci.ca.

Media Contacts

For Gamut:

Prosek Partners

(973) 908 – 4463

Pro-gamut@prosek.com

For BCI:

Ben O’Hara-Byrne

Sr. Manager, External Stakeholder Engagement

Email: communication@bci.ca