The British Columbia Investment Management Corp. generated returns of 7.4 per cent during the year ending on March 21, 2022, according to its annual report.
During the year, the investment organization’s net assets surpassed the $200-billion mark, rising from $199.6 billion to $211.1 billion. The results were hampered by the Russian invasion of Ukraine and by the lingering effects of the coronavirus pandemic, noted the report.
In a press release, Gordon Fyfe, the BCI’s chief executive officer and chief investment officer, credited the organization’s investment approach for the overall results. “Our strong performance reflects many years of preparation for market volatility. Our evolution into a world-class investment manager with active, in-house capabilities is yielding real results for our clients.”
While the BCI’s performance exceeded its benchmark, set at 4.6 per cent, the annual results were somewhat lower than average. Following the year, its annualized returns fell to 8.3 per cent on a five-year basis, 9.1 per cent on a 10-year basis and 7.7 per cent on a 20-year basis.
The annual results were led by the strong performance of the BCI’s alternative portfolios: its $24.8 billion private equity portfolio generated returns of 29.7 per cent, higher than any other asset class, while its $41.6 billion real estate portfolio returned 14.9 per cent and its $24.8 billion infrastructure portfolio’s saw a 12.1 per cent return.
The performance of public equities was more modest, though Canadian equities grew in value by 19 per cent during the year, 1.2 per cent below expectations. Global public equities, which had return benchmarks of nine per cent, returned just 5.7 per cent. Fixed income returns reached 0.3 per cent, triple the 0.1 per cent benchmark set by the BCI.
“As we emerge from this unprecedented time, we continue to face increasingly complex global markets,” said 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.”