British Columbia Investment Management Corp. has reported a -0.2 per cent return for its fiscal year ended Mar. 31, 2016, down from a 14.2 per cent return for the fiscal year ended Mar. 31, 2015.
However, the institutional investor said in a news release that, within a low return environment, its investment activities generated $133 million in additional value for its pension plan clients, driven by strong performance in private markets and real estate. It also said that relative outperformance within the public equity markets, especially Canadian equities and emerging markets, as well as outperformance within its mortgages program, also contributed to investment returns.
Read: bcIMC posts 14.2% return for 2015
For the year, the pension fund’s managed net assets were $121.9 billion. At March 31, 2016, the asset mix was: public equities (47.5 per cent or $57.9 billion); fixed income (21.4 per cent or $26.3 billion); real estate (14.4 per cent or $17.5 billion); infrastructure (5.9 per cent or $7.1 billion); private equities (5.6 per cent or $6.8 billion); mortgages (2.3 per cent or $2.8 billion); other strategies (1.5 per cent or $1.8 billion); and renewable resources (1.4 per cent or $1.7 billion).
“On behalf of our clients, bcIMC manages a diverse and quality portfolio of assets and we follow an investment discipline that focuses on the long term,” said Gordon J. Fyfe, bcIMC’s chief executive officer and chief investment officer. “Maintaining our discipline allows us to manage market risks during periods of volatility so our investments can provide stable cash flows and will appreciate in value over time.”
The pension fund said, during fiscal 2016, it continued to build relationships globally, expanded its investment products and assessed investment opportunities that aligned with its clients’ long-term, risk and return objectives.
Read: B.C. pension fund launches in-house real estate management arm
Investment highlights in fiscal 2016 included”
- $2.6 billion in new capital committed in its private equities program, of which $730 million was in direct investments;
- Approximately $1.1 billion deployed in direct investments in infrastructure;
- $1.1 billion committed through the mortgage program to commercial real estate across Canada;
- An additional US$200 million China-A share quota from China regulators committed; and
- Two real estate developments (745 Thurlow and Northwoods) completed.
“Our investment professionals generated additional value for our clients in a low-return environment,” said Fyfe. “They are making the strategic investment decisions that enable us to continue to grow our clients’ long- term wealth, while also protecting the value of their funds.”