Our Story 2

About IMCO / Our Story 2

In May 2012, the Ontario government began studying a new approach for managing the investments of Ontario’s broader public-sector pension plans and other non-pension investment funds. An independent review was launched to examine the advantages of pooled asset management and how this model might be implemented.

In November 2012, following extensive consultations across industry stakeholders, a comprehensive report was released that would ultimately recommend a new investment model for public-sector pensions and investment funds, with assets of a specific threshold, in Ontario.

“Our singular focus is to create value for our clients by driving the returns they require to meet the needs of the people who rely on them to build financially secure futures.”

Bert Clark, President & CEO

Creating a Pooled Asset Manager in Ontario

The report, Facilitating Pooled Asset Management for Ontario’s Public-Sector Institutions, set out foundations for a new pooled asset manager. The Investment Management Corporation of Ontario (IMCO) would be created as an independent entity and would be implemented under the following principles:

  • Participating institutions would retain fiduciary responsibility and control over asset allocation decisions (given variations in the liability profiles across pension plans and investment funds);
  • Employees and retirees would remain members of their existing plans; the relationship between each pension plan and its members would not change;
  • The new structure would not affect plan design (e.g., benefit levels and contribution rates), funding policies or approaches to administration;
  • IMCO would have an independent, professional and representative board of directors, whose duty would be to serve and act in the best interests of clients and to ensure that investment decisions would be based solely on seeking the best returns without political influence;
  • World-class governance, professional investment, risk management practices and competitive compensation would be key characteristics; and
  • Assets under management would be sufficient to support investing in a broad range of asset classes at the most competitive costs.
  • At the time of the report, there were over 100 public-sector pension funds in Ontario. The expected benefits of the pooling framework would include:

    • Anticipated reduction in duplication and costs;
    • Ability to achieve economies of scale,
    • Broadened access to alternative asset classes for clients; and
    • Enhanced risk management practices.

IMCO Launches

In July 2016, the Province announced the creation of IMCO through the Investment Management Corporation of Ontario Act. After six years of hard work and collaborative analysis to help establish the new asset manager, the Ontario Pension Board (OPB) and the Workplace Safety and Insurance Board (WSIB) became the new organization’s first clients.

In July 2017, IMCO began to manage approximately $60 billion in assets on behalf of its clients, becoming the ninth largest institutional fund in Canada.

$60 Billion

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Ontario government establishes a pooled asset management framework for Ontario’s public-sector pension funds.

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