BCI achieves 10% annual return in fiscal 2025
Marks 25th anniversary by delivering $9.3 billion in added value since inception
Victoria, British Columbia, Canada, June 25, 2025 (GLOBE NEWSWIRE) -- British Columbia Investment Management Corporation (BCI) today announced an annual combined pension plan return¹ of 10 per cent for the fiscal year ended March 31, 2025. The combined pension plan return represents the performance of BCI's six largest pension clients by assets under management (AUM).
Gross AUM² grew to $295 billion with net AUM totalling $251.6 billion. Investment income contributed $21.9 billion net of all fees to AUM growth, demonstrating the strength of BCI's diversified investment approach.
“Despite the severe market turbulence leading up to our March 31 year-end, we did an excellent job in fiscal 2025 rolling out a resilient, defensive-leaning investment strategy closely aligned with our clients’ long-term investment needs," said Gordon J. Fyfe, BCI's Chief Executive Officer and Chief Investment Officer.
BCI continues to deliver annualized long-term returns that exceed clients’ actuarial discount rates. Over the five-year period, BCI returned 8.9 per cent and 8.6 per cent over 15 years. Since inception, BCI has delivered $9.3 billion in cumulative value add, demonstrating the strength and resilience of its well-diversified investment strategy. BCI repeatedly delivers sustainable value for its clients, regardless of market volatility or economic uncertainty.
“BCI’s long-term performance has enabled our pension clients to remain in surplus positions, with funding ratios ranging from 103 to 133 per cent,” added Fyfe. “As we continue to face market uncertainty, we are actively modelling client portfolios against a range of risk scenarios. In all market conditions, great deals can still be found, and we continue to leverage our strong liquidity position to transact across asset classes globally.”
Strong Performance Across Asset Classes
All asset classes generated positive returns except for Real Estate Equity, which faced continued market headwinds despite modest interest rate cuts. Public Equities, Fixed Income, and Private Equity were the largest contributors to total performance during the fiscal year.
Within Public Equities, absolute return strategies generated strong results during a period when active equity managers faced headwinds. These strategies aim to provide consistent positive returns regardless of market conditions. Since inception in fiscal 2020, they have achieved a 16.1 per cent annualized return.
The Fixed Income portfolio delivered robust returns through active interest rate positioning and strong credit selection. The Corporate Bond Fund grew to $18.5 billion in net AUM, while the Principal Credit Fund expanded to $19.4 billion in net AUM. The Fund broadened its offerings by introducing asset-backed lending (ABL) through three new strategic partnerships, providing enhanced downside protection and attractive risk-adjusted returns. With shorter loan durations and increased flexibility, ABL strengthens portfolio resilience and offers stability and opportunity during periods of market volatility.
BCI Private Equity delivered strong results despite challenging market conditions. The team executed $2.2 billion in new investments and announced significant exits, Hayfin Capital and Ziply Fiber3, two of its five largest assets. It also generated $1.6 billion in proceeds from the completion of two secondary sales.
BCI Infrastructure & Renewable Resources experienced 18 per cent net AUM growth for the calendar year. In fiscal 2025, the group originated and executed $5.1 billion in new investments. The asset class delivered excellent total returns despite turbulent markets and geopolitical stress. Notable transactions included the take-private of BBGI Global Infrastructure S.A. and two key investments which support the energy transition economy, Renewi PLC, a recycling company, and Shepherds Flat wind project, one of the world’s largest windfarms.4
BCI's Real Estate investments demonstrated resilience and strategic positioning in tough market conditions. The Real Estate Debt portfolio delivered a positive return due to strong asset selection and active management. Real Estate Equity produced the lone negative result, due to market-driven valuation adjustments coming from higher interest rates rather than realized losses. Strong portfolio fundamentals and positive income supported overall performance, with stable occupancy rates and rent growth experienced by industrial, alternative, and residential sectors.
RETURN SUMMARY FOR COMBINED PENSION PLAN CLIENTS
| Annualized Returns (%) | ||||||
| 1 Year | 5 Year | 10 Year | 15 Year | 20 Year | 25 Year | |
| Combined Pension Plan Return | 10.0 | 8.9 | 7.4 | 8.6 | 7.8 | 7.0 |
| Benchmark | 12.3 | 9.0 | 7.1 | 7.8 | 7.2 | 6.4 |
| Annualized Returns (%) | ||||||
| Public Markets | 1 Year | 5 Year | 10 Year | 15 Year | 20 Year | |
| Fixed Income | ||||||
| Short Term | 8.3 | 2.8 | 2.3 | 2.3 | 2.7 | |
| Nominal Bonds | 6.9 | 1.1 | 2.1 | 3.5 | 4.0 | |
| Private Debt | 10.2 | 9.2 | - | - | - | |
| Funding Program | 4.3 | 2.6 | - | - | - | |
| Public Equities | ||||||
| Canadian Public Equity | 12.6 | 16.5 | 8.4 | 8.2 | 8.0 | |
| Global Public Equity | 14.3 | 16.8 | 11.3 | 12.7 | 9.4 | |
| Emerging Markets Public Equity | 12.8 | 9.6 | 5.4 | 6.3 | - | |
| Private Markets | ||||||
| Infrastructure & Renewable Resources | 8.3 | 8.9 | 9.1 | 9.6 | 9.7 | |
| Private Equity | 13.4 | 15.4 | 16.2 | 16.1 | 13.9 | |
| Real Estate Equity | (1.8) | 2.6 | - | - | - | |
| Real Estate Debt | 6.1 | 5.1 | 4.6 | 4.9 | 5.3 | |
| An internal rate of return (IRR) methodology is used to calculate returns for infrastructure & renewable resources, private equity, and real estate equity. The assets are valued as at December 31, 2024. | ||||||
Committed to Responsible Investing
During the fiscal year, BCI continued making strong progress in responsible investing. Highlights for the year included surpassing $6 billion in cumulative sustainable bond participation, exceeding BCI’s 2025 expectation of $5 billion, hosting BCI Private Equity’s inaugural ESG Value Creation Conference, and achieving a 100 per cent score from the Global Sovereign Wealth Fund's Governance, Sustainability and Resilience Scoreboard.
BCI’s Ecosystem5
The effects of BCI's operations extend far beyond investment returns. In 2024, the organization's ecosystem contributed $24.4 billion to British Columbia's provincial GDP, representing 5.9 per cent of the province's economy. This impacted 1 in 10 British Columbia households and supported the creation of 225,800 jobs provincially and an additional 8,000 jobs nationally, generating $12.2 billion in wages for workers across all age groups.
For more corporate highlights, including BCI’s focus on sustainable growth, innovation, and operating on a global scale, read the 2024-2025 Corporate Annual Report released today on BCI.ca.
ABOUT BCI
BCI is one of Canada’s largest institutional investors, with C$295 billion in gross assets under management as of March 31, 2025. For 25 years, BCI has built its legacy on performance with purpose, helping its 32 public sector and institutional clients deliver on their commitments. From securing pensions to supporting communities, it’s investing that matters.
Headquartered in Victoria, British Columbia, and with teams spanning Vancouver, New York, London, and Mumbai, BCI puts patient capital to work across public and private markets globally.
Learn more on BCI.ca or connect on LinkedIn.
_____________________________________
Please refer to our Annual Report for additional details, which may supplement or supersede the information provided herein.
All figures are in Canadian dollars unless otherwise stated.
¹ The combined pension plan clients reflect the investments of BCI's six largest pension clients: BC Hydro Pension Plan, College Pension Plan, Municipal Pension Plan, Public Service Pension Plan, Teachers' Pension Plan, and WorkSafeBC Pension Plan.
² Gross assets under management include all investment assets, before deducting Real Estate Debt and Equity recourse debt directly issued by QuadReal Property Group, BCI and QuadReal Property Group Real Estate Debt and Equity uncollateralized derivative liabilities, and BCI’s Funding Program liabilities.
3Transaction has been announced but not yet closed; remains subject to satisfaction of closing conditions, including regulatory approvals.
4Transactions were signed before BCI’s March 31 year-end but closed during the first quarter of the subsequent fiscal year.
5These figures come from a 2024 Canadian Centre for Economic Analysis study and show the economic activity supported by BCI’s payments, its clients, operations, and investments during its fiscal year ending March 31, 2024. The study focused on BCI’s economic contributions and does not compare different retirement or insurance plan options.
Olga Petrycki BCI - British Columbia Investment Management Corp +1 778 410 7100 media@bci.ca
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
