The Investment Management Corporation of Ontario (IMCO) is a key player in Canada’s investment management industry. Established in 2016, IMCO manages over $73 billion in assets for Ontario’s public sector clients. With its strong investment capabilities and focus on generating value for public sector funds, IMCO has become one of the largest institutional investors in Canada. This article provides an overview of IMCO’s business, investment approach, performance and future outlook.
An Independent Asset Manager Serving Ontario’s Public Sector
IMCO was formed by the Ontario government to provide independent, professional investment management services to various public sector organizations in the province. Its clients include pension funds, insurance funds, endowment funds, and government bodies like school boards and universities. By consolidating the management of these assets under one entity, IMCO aims to achieve economies of scale and enhance returns. Key benefits for clients include lower costs, diversification, access to alternative investments, and being freed up to focus on their core mandates.
A Diversified Portfolio and Disciplined Investment Process
IMCO utilizes a prudent, disciplined approach designed to generate steady, long-term returns while managing risk. Its well-diversified portfolio consists of public equities, fixed income, real assets like real estate and infrastructure, and private equity. These are invested across geographies in both public and private markets. IMCO’s investment process focuses on identifying high-quality assets trading at reasonable valuations, thorough due diligence, and careful portfolio construction. Active management, tactical tilting, currency hedging, and other value-add strategies are employed to enhance returns.
Strong Track Record and Rapid Growth
Since its inception, IMCO has built up a strong investment track record across various asset classes, outperforming many Canadian pension fund benchmarks. As of 2022, IMCO managed over $73 billion in AUM for 30+ clients. Its AUM and client base grew rapidly due to its ability to deliver significant cost savings and value-add. With net returns of 9.7% in 2021 despite market volatility, IMCO is strengthening its position as a top investment manager for Canadian public sector funds. It aims to manage over $100 billion in the coming years as more public sector entities utilize its services.
Building World-Class Investment Capabilities
IMCO is focused on further developing its investment platform and talent. It is improving its data analytics capabilities and building out specialized teams in key areas like private equity, real estate, and infrastructure. To support its growing portfolio and complex investments, IMCO plans to expand its team to over 200 professionals. It aims to nurture a high-performance culture focused on integrity, collaboration, and inclusion. IMCO also plans to open international offices to expand its global reach. With its scale, resources, and vision, IMCO is cementing its reputation as an elite global asset manager.
As a leading investment manager for Canadian public sector funds, IMCO provides scale, diversification, and value-add strategies. Its disciplined investment approach and rapid AUM growth reflect its strong capabilities. By further expanding its platform and talent, IMCO is poised to become a top global asset manager.