BCI returns 7.5% and surpasses $250 billion in gross assets for fiscal 2024

Public equities and private debt were top contributors to absolute performance 1of 7.5 per cent. The combined pension plan return represents the performance of BCI's six largest pension clients by assets under management (AUM).Gross AUM 2grew from $233.0 billion last year to $250.4 billion for the fiscal year ended March 31, 2024, a year-over-year increase of $17.4 billion or 7.5 per cent. Net AUM totalled $229.5 billion, with investment gains contributing $16.5 billion net of all fees...

Victoria, 27/06/2024 (informazione.it - comunicati stampa - economia)

of 7.5 per cent. The combined pension plan return represents the performance of BCI's six largest pension clients by assets under management (AUM).

Gross AUM grew from $233.0 billion last year to $250.4 billion for the fiscal year ended March 31, 2024, a year-over-year increase of $17.4 billion or 7.5 per cent. Net AUM totalled $229.5 billion, with investment gains contributing $16.5 billion net of all fees to this AUM growth.

“We delivered solid absolute results even through challenged markets this year,” said Gordon J. Fyfe, BCI's Chief Executive Officer and Chief Investment Officer. “This was not a coincidence. Rather, it speaks to our team's diligent risk approach and prudent liquidity management, which provided us with resilience and capability to capture market dislocations and deploy capital. Our investment teams continue to build a diversified portfolio, emphasizing direct and unique deals around the globe.”

All asset classes generated positive returns apart from real estate equity, where sustained market headwinds affected valuations. Liquidity management was a key focus, including $1.25 billion in capital raised from BCI's inaugural bond issuance, with an additional $1 billion raised in the subsequent reopening of the same series. Asset classes focused on rebalancing across strategies to pursue opportunities in a muted deal environment. More than 10 direct deals were executed, further diversifying BCI's portfolio with entry into new sectors and geographies complementing our strong Canadian footprint. Opportunities in infrastructure debt increased, and three transactions were closed, increasing European exposure. Private debt deployments were substantial at US$2 billion, focusing on differentiated opportunities in the middle and lower middle markets and expanding the program to Asia. Within the infrastructure & renewable resources and private equity programs, an increasing focus on asset management boosted portfolio valuations and created $17.6 billion in value over five years and returned $31.1 billion in cash distributions to clients.

Long term, BCI continues to deliver consistent annualized results, returning 7.5 per cent over a five-year period, representing a cumulative value add of $2.2 billion. As a result, BCI's combined pension clients, with investment horizons extending many years, maintain a healthy position with funding ratios ranging from 103 to 133 per cent. 

“Generating consistent long-term performance is imperative for our clients as they require greater cash flows for their obligations as pension plans mature,” added Fyfe. “Looking at our annualized 10-year return, for our combined pension plan clients, we outperformed the benchmark by 0.7 per cent, representing $8.3 billion of value add, consistently exceeding our clients' nominal and real actuarial discount rates.”

“Our one-year relative performance lagged the benchmark this fiscal. This was no surprise as the exponential growth of the 'Magnificent Seven' tech stocks resulted in a very strong combined pension plan benchmark hurdle. We build portfolios that provide clients with the risk-adjusted returns they require over the long term, and that's where we will continue to focus on adding value.” 

RETURN SUMMARY FOR THE COMBINED PENSION PLAN CLIENTS

HIGHLIGHTS

Corporate

Public Markets

Private Markets

The 2023-2024 Corporate Annual Report is available at .

British Columbia Investment Management Corporation (BCI) is amongst the largest institutional investors in Canada, with C$250.4 billion in gross AUM as of March 31, 2024. Based in Victoria, British Columbia, with offices in Vancouver, New York, and London, U.K., BCI manages a portfolio of diversified public and private market investments on behalf of its 29 British Columbia public sector clients.

With a global outlook, BCI integrates ESG factors into investment decisions and activities that convert savings into productive capital to meet clients' risk and return requirements over time. Founded in 1999, BCI is a statutory corporation created by the . For more information, visit BCI.ca or LinkedIn .

1 The combined pension plan clients reflect the investments of BCI's six largest pension clients: BC Hydro Pension Plan, College Pension Plan, Municipal Pension Plan, Public Service Pension Plan, Teachers' Pension Plan, and WorkSafeBC Pension Plan.
2 Gross assets under management exclude market values for The Funding Program, which are clients' investment liabilities achieved through government bond repurchase agreements and unsecured bond issuance. 
3 Cumulative value-add is the additional dollar return that BCI generated for clients in excess of client benchmarks through active investments, excluding the impact of the centralized currency management program after all costs and fees.
The Funding Program includes clients' investment liabilities achieved through government bond repurchase agreements and unsecured bond issuance.

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