Pension Pulse

IMCO posted its 2021 results, delivering a net gain of 9.6% and outperforming its benchmark: 2021 Highlights Generated 110 basis points of net value add for clients Absolute returns and net value add were positive for all IMCO clients Grew assets under management to $79 billion (at Dec. 31, 2021) Committed to net zero greenhouse gas emissions in portfolio by 2050 or sooner TORONTO (April 25, 2022) – The Investment Management Corporation of Ontario (IMCO) today announced that the weighted average net return of its clients’ portfolios was 9.6% for the year ended December 31, 2021, compared to a consolidated benchmark return of 8.5%. Client returns ranged from 0.1% to 11.2%, reflecting broad differences in their respective asset allocation strategies, risk tolerances and investment objectives. IMCO generated 110 basis points of net value add for clients in 2021, and 50 basis points annualized since first launching its new investment strategies two years ago. IMCO’s assets ...

David Parkinson of the Globe and Mail reports that Sen. Clément Gignac is determined to address ‘conundrum’ of Canada’s lacklustre capital investment: Clément Gignac – veteran Canadian economist, rookie Canadian senator – says that if Canada is going to meet its economic goals of a green transition, improved productivity and sustained healthy growth, it’s going to need an awful lot of private-sector money to do it. He knows where we could find a couple of trillion dollars in investment money – from domestic sources, no less. Tapping into it will be the tricky part. “I doubt that Canada will be able to succeed in energy transition without the participation of pension funds,” he said in an interview last week. “It’s important to understand what policy-makers have to do to interest Canadian pension funds in more Canadian investment.” Mr. Gignac comes at the problem from an interesting background, both professionally and politically. The 66-year-old spent decades as o...

Barbara Shecter of the National Post reports AIMCo delivers record 14.7% gain in 2021 as it rebounds from volatility scheme losses: Alberta Investment Management Corporation (AIMCo) has bounced back from a $2-billion loss on a volatility trading scheme in 2020, posting the strongest net return in its history — 14.7 per cent — for the year ended Dec. 31. The Crown corporation, which manages pension, endowment, and government funds in Alberta, beat its aggregate benchmark of eight per cent, with a record annual “value-add” of $7.7 billion. Client assets under management at the end of the year totalled $168.3 billion. The annualized total fund return over ten years is 8.6 per cent. “Delivering record investment returns is a tremendous accomplishment made possible by our in-house asset management expertise,” said Evan Siddall, who took over as AIMCo’s chief executive in July. Siddall was previously head of the Canada Mortgage and Housing Corporation (CMHC)...

PSP Investments just launched its inaugural Climate Strategy with targets to guide climate action and emissions reduction: The Public Sector Pension Investment Board (PSP Investments) announced today the launch of its first Climate Strategy, setting out an enhanced ambition to guide emissions reduction across its investment portfolio. The objective of the Climate Strategy is to support the global transition to net-zero emissions by 2050 by proactively managing climate risks, unlocking investment and carbon reduction opportunities associated with climate-aligned assets, strengthening carbon disclosure, and enhancing collaboration with a wide range of stakeholders. “At PSP Investments, we have considered ESG factors, including climate, in our decision-making for many years.  This puts us in a good position to launch our climate strategy today”, said Neil Cunningham, President and CEO at PSP Investments. “PSP Invest...