2025 was another year of solid investment results for IMCO, reflecting the consistency and discipline of our approach. In a complex and volatile environment, we delivered outcomes that met or exceeded client objectives while reinforcing the resilience of our portfolio and our organization.
Investment performance
We achieved our third consecutive year of strong absolute
returns in 2025. Despite elevated market valuations
and currency headwinds, we delivered a solid 7.4 per
cent return for our clients. Our disciplined investment
approach — avoiding big bets and market timing, pursuing
outperformance only where we have a clear advantage, and
maintaining a strong focus on costs — continues to work.
2025 underscored the importance of portfolio resilience.
Long-standing economic and trade assumptions were
tested, increasing uncertainty across markets. Our
diversified portfolio, strong global partnerships, committed
employees and the trust of our clients enabled us to
navigate the year effectively.
Our medium- and longer-term results reflect both the
degree of discretionary management available to us and the
impact of evolving market conditions over time.
During the periods where we’ve had the greatest discretion
in managing the portfolio through changing market
conditions, performance has been strong. This is reflected in
both our one- and three-year annualized returns at 7.4 per
cent and 7.6 per cent.
Client success
Close collaboration with clients allowed us to respond quickly
to a changing global environment. We secured approval for
updated Strategic Asset Allocations (SAAs) and intensified
currency management as foreign exchange risks increased.
As the public asset manager of choice in Ontario,
we provide a comprehensive investment solution, including
asset mix advice, access to a broad range of investment
products and services, and high-quality reporting and
risk management.
Culture evolution
In 2025, IMCO refreshed its brand to better reflect who
we are and how we work. Our purpose — delivering the
long-term investment results our clients need — remains unchanged. What differentiates us is our collaborative
culture. How we work together, with each other, our partners
and our clients, is central to better outcomes.
We also continued to invest in our people through talent
management, succession planning, leadership development
and enhanced benefits. Engagement remained strong, and
for the third consecutive year, IMCO was named one of
Greater Toronto’s Top Employers.
Operational effectiveness
Cost-efficient operations depend not only on strong nearterm
cost management but also the infrastructure to
underpin robust asset management and client success over
the long term.
Operating expenses fell in 2025 to 62 basis points and
independent benchmarking confirmed IMCO’s continued
cost competitiveness as we adapt to evolving cost exposures.
But operations must keep up with the evolution of our
capabilities and the investment landscape. This year, we
continued to build an enterprise-wide integrated data
management platform, strengthened cybersecurity and
launched a strategy governing our adoption of artificial
intelligence (AI).
Looking ahead
We enter 2026 with a well-diversified portfolio backed by
nimble asset management, operations attuned to the latest
opportunities and risks, and a strong collaborative culture
both internally and in our client relations.
I want to thank our team for their hard work and commitment
to our mission. Together, we are well positioned to defend
gains and seize opportunities on behalf of our clients. As
a strong Canadian organization, we are well positioned to
respond to investment opportunities that emerge in our
home jurisdiction as our country responds to the challenges
of our times.
