Investment Management Corp. of Ontario returned 9.9% last year, driven mainly by gains in stocks and private equity holdings.
The results for the Canadian pension manager “reflect the strength of our disciplined, long-term approach to investing,” Chief Executive Officer Bert Clark said Wednesday in a statement.
IMCO’s stock holdings gained 24.2% and private equity investments returned 16.4%, while the real estate portfolio declined about 1%.
As of July, IMCO discontinued its public market alternatives strategy, which employed active and niche strategies uncorrelated to the equity markets — such as mortgages, structured credit and risk transfers. The asset class returned 6.2% last year and comprised 2% of the total portfolio. The strategy is now pursued in IMCO’s public equities and global credit.
Canadian pension fund managers are dealing with a different reality since US President Donald Trump launched tariffs globally, wreaking havoc on markets. “Our portfolio is constructed and managed to be resilient to volatility,” Chief Investment Officer Rossitsa Stoyanova said in an emailed statement to Bloomberg. “In private markets, our approach has always been to avoid investments with ‘stroke of the pen’ risk.”
Assets under management rose to C$86 billion at year-end. The US accounted for 52% of that total — up from 42% in 2021, while Canada made up about a third of the portfolio and Europe 11%.
Stoyanova said that IMCO doesn’t time the markets or make adjustments based on near-term market events, and instead focuses “on the things we can control – managing costs and liquidity effectively; and systematically rebalancing our portfolio,” she said.
The Toronto-based fund manager wrote down its $400 million investment in Northvolt AB, the electric vehicle battery maker that filed for bankruptcy protection last year.
IMCO was founded in 2016 to consolidate the management of a number of retirement funds for government workers in Ontario, Canada’s most populous province.
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