IMCO results reveal assets under management rose to $77.4 billion in 2023
The investment manager responsible for generating returns for several Ontario pension funds has reported a one-year weighted average net return of its clients' portfolios of 5.6% for 2023.
The Investment Management Company of Ontario (IMCO) has seen AUM rise to $77.4 billion in the last year, up from $73.3 billion in 2022.
The year was not as easy one with volatility in the markets and ongoing inflation, but IMCO managed to navigate the choppy waters and deliver positive returns for every asset class (led by 18% for public equities) with the exception of real estate which posted negative 13%, more than its -12.1% benchmark.
The positive tone of its latest annual report includes an additional four clients that have chosen it to manage their assets, which will add $2.6 billion in new portfolio assets.
With the important focus on a greener economy, IMCO invested over $1 billion in clean energy transition assets in 2023. This marks significant progress towards its Climate Action Plan and goal of committing $5 billion towards energy transition investments by 2027.
Private equity
It also launched its Global Credit and Private Equity Pools and its Private Equity team invested $988 million of capital across 11 direct and co-investment deals in a variety of different sectors and geographies.
"Our long-term investment approach has enabled IMCO to navigate market volatility effectively, particularly in private markets such as Global Credit, Infrastructure and Private Equity – which have shown positive performance and value add since we began investing on behalf of our clients four years ago," said Rossitsa Stoyanova, Chief Investment Officer of IMCO. "2023 was marked by significant transactions and investments in energy transition, which further diversified our investment portfolio while evolving asset class strategies in areas of competitive advantage."
The organization operates under an independent, not-for-profit, cost recovery structure, and is one of Canada’s largest institutional investors.
"We are very pleased with the overall results we achieved for our clients in 2023," said Bert Clark, President and CEO of IMCO. "In a year marked by persistent inflation and market volatility, our results reflect the success of the strategic changes we have made to clients' asset mix and our new strategies at the asset class levels."
