It鈥檚 been a big year for the British Columbia Investment Management Corporation (BCI). The Victoria-based investment corporation is the investment manager for many of B.C.鈥檚 public sector pension plans, as well as insurance funds that provide more than three million Autoplan insurance policies annually, and benefits coverage to more than two million workers and 225,000 companies, and also public trusts and endowments.
BCI achieved a 7.4 per cent on behalf of British Columbia鈥檚 public sector pension plans for the one-year period ending March 31, 2022. BCI鈥檚 active, in-house, global investment strategies added $11.5 billion in net assets under management (AUM), increasing BCI鈥檚 total AUM to $211.1 billion, making it one of the largest institutional investors in Canada.
The annual return exceeded the combined market benchmark result of 4.6 per cent, and the 2.8 per cent outperformance generated by BCI鈥檚 investment activities equates to $4.4 billion created for BCI鈥檚 pension plan clients, helping to strengthen the financial position of the plans whose members total nearly three quarters of a million people in B.C.
Looking longer term, over a 10-year period BCI generated an annualized 10-year return of 9.1 per cent, compared to a combined market benchmark result of 8.0 per cent for their pension plan clients. Surpassing the benchmark by 1.1 per cent over that time period equates to $13.2 billion in value generated notes Ramy Rayes, BCI鈥檚 Executive Vice President of Investment Strategy & Risk. 鈥淚f you look at our results another way, BCI鈥檚 strong rate of return over the course of the last decade means that, for every $100 a pension plan member received in retirement benefits, $75 on average has been created and provided by BCI鈥檚 ongoing strategic investment activity.鈥�
Its investment success has earned BCI the Canadian Investment Review 2021 Pension Leadership Award for Sustainable Investing, the 2021 Responsible Investment Association Leadership Award for Integration, and achieved a top spot in the Responsible Asset Allocator Initiative鈥檚 2021 Leaders List of the 30 Most Responsible Asset Allocators. BCI also achieved a 10th-place ranking in Infrastructure Investor鈥檚 2021 Global Investor 50 鈥� a list of the largest institutional investors in global infrastructure.
The results of successful planning
BCI鈥檚 well-diversified portfolios and sophisticated investment strategies work to safeguard clients鈥� capital through unpredictable market turbulence 鈥� impacts which currently range from the ongoing COVID-19 pandemic to Russia鈥檚 invasion of Ukraine. Those same strategies will continue to serve clients well in the current environment of global inflation.
鈥淧lanning ahead is imperative,鈥� Rayes says. While you never know what specific events may influence global markets, 鈥測ou must have a process in place to be nimble when they come. Having both the people and the plan means being able to deliver that long term success for our clients.鈥�
Working to further expand its ability to capture global investment opportunities, BCI has recently opened a New York City office for its private equity program, and a London, U.K. office, designed to support infrastructure and renewable resource investments, will open by the end of the year.
Focusing on Talent
A key factor in BCI鈥檚 growth is its recognition that are essential for corporate success.
It鈥檚 why, in addition to investment accolades, they鈥檙e just as proud to be named one of BC鈥檚 Top Employers, one of Canada鈥檚 Top 100 Employers and one of Canada鈥檚 Family-Friendly Employers for the third consecutive year, Rayes emphasizes.
As the corporation has grown to more than 600 employees from about 200 in 2016, BCI recognizes that attracting talented people isn鈥檛 always easy. So, beyond rewarding careers, it has focused on creating a welcoming, that also recognizes the corporation鈥檚 place in the .
Alongside corporate support for initiatives like United Way Southern Vancouver Island, Junior Achievement of B.C. literacy programs which have been provided to 2,600 students across B.C., BCI recently doubled its staff volunteer time 鈥� now, employees receive two paid days off annually to volunteer in the community with an organization of their choice, Rayes notes.
And, recognizing the need to continue its investment in the future, BCI has nurtured a robust student co-op and internship program that provides students from post-secondary educational facilities across Canada meaningful work experiences 鈥� a critical investment in its next generation of investment and business professionals.
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