The Investment Management Corp. of Ontario, which provides investment management services to broader public sector institutions in the province, is reporting a 5.4 per cent weighted average return for its clients’ funds (net of all fees) in 2020.
Returns ranged from 0.2 per cent to 7.1 per cent based on asset mix, risk tolerance and investment objectives, according to a press release. Assets under management were $73.3 billion on December 31, 2020.
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“We delivered solid results and met our benchmark, even as we implemented new investment strategies and managed through the volatile investment environment created by COVID-19,” said Bert Clark, IMCO’s president and chief executive officer, in the release.
During 2020, IMCO said it saved $10 million in investment management fees, beating its target for cost savings by 25 per cent and delivering costs about 10 per cent lower than IMCO clients would’ve had to pay for similar portfolios. To achieve this, IMCO eliminated fund-of-fund structures and cut back from 200 to 124 external managers.
“There will always be external managers with unique capabilities, so we are actively building partnerships with those best-in-class investors,” Clark added in the release. “We have also built internal capabilities that enable us to significantly reduce costs on behalf of our clients.”
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