IMCO to add $2.6 billion in portfolio assets, following selection by four new clients to provide investment management services
Financial Services Regulatory Authority of Ontario, Tarion, City of Ottawa, and OCWA have chosen IMCO for investment management services
TORONTO (DECEMBER 5, 2023) – The Investment Management Corporation of Ontario ("IMCO") announced today that it has been selected by the Financial Services Regulatory Authority of Ontario ("FSRA"), Tarion Warranty Corporation ("Tarion"), the City of Ottawa, and Ontario Clean Water Agency ("OCWA") to provide investment management services.
Following a competitive evaluation process, IMCO was chosen to manage assets totaling approximately $2.6 billion, including:
- $1.2 billion for the Pension Benefits Guarantee Fund ("PBGF"), administered by FSRA,
- $702 million for Tarion’s Guarantee Fund,
- $633 million for the City of Ottawa's OC Transpo employees' defined benefit pension plan, and
- $50 million for OCWA’s reserve fund.
IMCO is one of the largest asset managers in Canada. Managing over $73 billion in assets (as of Dec. 31, 2022), the company provides end-to-end investment solutions and fiduciary oversight to a range of public sector clients across Ontario.
"I am pleased to welcome our newest IMCO members," said Bert Clark, IMCO's President and CEO. "Public funds in Ontario who join IMCO have access to a high quality, end-to-end investment solution that is more comprehensive and lower cost than any alternative. We look forward to working with our new clients to navigate an increasingly complicated investment environment and meet their investment objectives."
FSRA is an independent Ontario regulatory agency focused on protecting consumers and pension plan beneficiaries. FSRA's Chief Executive Officer administers the PBGF, which provides protection to Ontario beneficiaries of single employer defined benefit pension plans when their employer cannot satisfy funding obligations under the Pension Benefits Act.
"FSRA is committed to promoting the good administration of Ontario pension plans and to protecting the rights and benefits of their beneficiaries," said Mark White, FSRA CEO. "The Ontario Pension Benefits Guarantee Fund is unique in Canada and protects the beneficiaries of single employer defined benefit pension plans in Ontario that contribute to the PBGF. Increased returns on PBGF assets will provide greater protection to these beneficiaries, and we are confident in IMCO's ability to improve these returns."
Tarion is an independent, not-for-profit, consumer protection organization designated by the Ontario government to administer the Ontario New Home Warranties Plan Act (ONHWPA). Tarion provides Ontario's new home buyers and owners with peace of mind that their purchase is safeguarded through the province's new home warranty and protection program, and helps homeowners understand their builder's warranty and navigate warranty claims with confidence.
"Tarion's goal is to support new home buyers and owners by ensuring that one of life's biggest investments is protected, and the guarantee fund is an important part of that protection," said Peter Balasubramanian, Tarion President and CEO. "The fund exists to protect both current and future homeowners from small issues right up to the worst-case scenario.
"Tarion undertook a rigorous year-long review of our overall investment strategy and undertook a comprehensive RFP process to select our investment partner. We believe there is strong alignment between IMCO and Tarion’s public mission and we are excited to work with IMCO to ensure a robust guarantee fund will continue to be there for homeowners when they need it most."
The City of Ottawa sponsors the closed OC Transpo employees' defined benefit pension plan, which provides retirement benefits to more than 2,000 public transit workers in Ottawa. OCWA is an Ontario Crown Agency providing solutions to municipalities, First Nations, businesses, governments, and institutions, and committed to ensuring that communities across Ontario have access to safe and reliable water and wastewater services.
IMCO will begin the process for bringing its new clients on board in 2024, following required regulatory changes and contracts completion.
Vice President, Corporate Communications, IMCO
The Investment Management Corporation of Ontario (IMCO) manages $73.3 billion of assets on behalf of our clients. Designed exclusively to drive better investment outcomes for Ontario's broader public sector, IMCO operates under an independent, not-for-profit, cost recovery structure. We provide leading investment management services, including portfolio construction advice, better access to a diverse range of asset classes and sophisticated risk management capabilities. As one of Canada's largest institutional investors, we invest around the world and execute large transactions efficiently. Our scale gives clients access to a well-diversified global portfolio, including sought-after private and alternative asset classes. Follow us on LinkedIn and X@imcoinvest.