January 13, 2021
Victoria, British Columbia – BCI has a proud record of investing on behalf of British Columbia’s public sector for more than two decades and providing the returns that secure our clients’ financial futures.
In early 2020, BCI completed a multi-year project to replace our existing investment management platform. The largest undertaking of its kind in our history, the new system went live in March 2020.
The new investment management platform replaced a legacy system and allows BCI to be more efficient, reduce overall operational risk, and produce deeper insight into our portfolios, all to the ultimate benefit of BCI and our clients.
BCI has identified a process error associated with the transition. The error impacted the calculation of our real estate program returns, managed by QuadReal Property Group, from March 1, 2020 to August 4, 2020. As a result, the previously reported Combined Pension Plan total return for fiscal 2020 has been recalculated to reflect a 0.08 per cent adjustment from 3.03 per cent to 2.95 per cent. The recalculation also results in an adjustment to the cumulative 10-year return, which now stands 8.4 per cent instead of the previously reported 8.5 per cent. There is no change in the reported cumulative five, 15 and 20-year returns. BCI’s previously reported net asset values (NAVs) are also all correct.
The Combined Pension Plan total return is also a factor in the calculation of Annual Incentive Pay (AIP) and Long-Term Incentive Pay (LTIP) for BCI’s permanent employees. The adjustment means a recalculation of the amounts paid in remuneration as part of the incentive programs for fiscal 2020, money which was fully recuperated by the end of the 2020 calendar year.
BCI’s 2019-2020 Corporate Annual Report has been updated with the inclusion of an erratum to identify the recalculations to our previously reported returns and remuneration figures, including the value drivers for the AIP and the LTIP. The BCI corporate website has also been updated accordingly.
BCI has conducted a thorough review and engaged a third party to provide an independent lens on the steps taken to ensure they are comprehensive and correct. Although no other errors have been detected, we have introduced additional internal controls to further mitigate the risk of future misstatements. We are confident in our processes and in the integrity of our financial reporting.
BCI’s actions taken in addressing this matter reflect our core values of accountability, integrity, and transparency.
Ben O’Hara-Byrne, Senior Manager, External Stakeholder Engagement (firstname.lastname@example.org)