Last year, Ontario’s investment management firm returned 9.9%, mainly owned by stocks and private equity.
CEO Bert Clark said in a statement that the results of Canadian pension managers “reflect the strength of our disciplined long-term investment approach.”
IMCO’s stock holdings rose 24.2%, private equity investment rate returned 16.4%, while real estate portfolio fell by about 1%.
As of July, IMCO stopped its public market alternative strategy, which adopted positive and niche strategies that were not related to the stock market, such as collateral, structured credit and risk transfer. The asset class returned 6.2% last year, accounting for 2% of the total portfolio. Now, this strategy is adopted in IMCO’s public stocks and global credit.
Canadian pension fund managers are dealing with different reality since US President Donald Trump imposed tariffs globally, wreaking havoc on the market. “Our portfolio is built and manages 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 that use “brushstroke” risks.
At the end of the year, assets under management fell to $86 billion. The United States accounts for 52% of that total, up from 42% in 2021, while Canada accounts for about one-third of its portfolio and Europe.
Stoyanova said IMCO would not be timed or adjusted based on recent market events, but instead “focus on what we can control – effectively manage costs and liquidity; and systematically rebalance our portfolio.”
The Toronto-based fund manager wrote about 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 many retirement funds for government workers in Ontario, Canada’s most populous province.
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