**IMCO Achieves 9.9% Return Driven by Stocks and Private Equity**
Investment Management Corp. of Ontario (IMCO) reported a robust return of 9.9% for the past year, primarily fueled by significant gains in its stock and private equity investments. Chief Executive Officer Bert Clark emphasized that these results demonstrate the effectiveness of IMCO’s disciplined, long-term investment strategy.
The organization saw its stock holdings rise by 24.2%, while private equity investments yielded a return of 16.4%. However, the real estate portfolio experienced a slight decline of approximately 1%. In July, IMCO made a strategic decision to discontinue its public market alternatives strategy, which had included active and niche investments that were uncorrelated to equity markets, such as mortgages and structured credit. This asset class achieved a return of 6.2% last year and represented 2% of the total portfolio. The focus of this strategy has now shifted to IMCO’s public equities and global credit sectors.
The Canadian pension fund landscape has shifted significantly since the introduction of global tariffs by former US President Donald Trump, which have created volatility in the markets. Chief Investment Officer Rossitsa Stoyanova stated that IMCO’s portfolio is designed to withstand market fluctuations. “Our approach in private markets has always been to steer clear of investments that carry ‘stroke of the pen’ risk,” she noted in a statement.
At the end of the year, IMCO’s assets under management reached C$86 billion, with the United States accounting for 52% of this total, an increase from 42% in 2021. Canada comprised about one-third of the portfolio, while Europe represented 11%. Stoyanova highlighted that IMCO does not attempt to time the markets or make adjustments based on short-term events, but rather concentrates on controllable factors such as cost management, liquidity, and systematic portfolio rebalancing.
Additionally, IMCO recorded a write-down on its $400 million investment in Northvolt AB, the electric vehicle battery manufacturer that filed for bankruptcy protection last year. Established in 2016, IMCO was created to streamline the management of various retirement funds for government employees in Ontario, Canada’s most populous province.
**FAQ**
**What is IMCO’s investment strategy?**
IMCO employs a disciplined, long-term investment strategy focused on managing costs and liquidity effectively while avoiding high-risk investments.
