BCI Annual Report


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Our Clients BCI is accountable to clients for generating long-term returns that meet or exceed their actuarial targets and benchmarks, net of all operating costs, without taking on unnecessary risk. We focus on understanding our clients' investment needs — whether managing funds on behalf of pension boards, growing capital reserves for insurance funds, or generating income for trust funds. We learn about their investment objectives, risk tolerance, liability profiles, liquidity needs, taxable status, and investment horizons. We use our pooled funds to construct well-diversified and tailored portfolios that align with our clients' return expectations, risk appetite, and investment beliefs. BCI also works closely with trustees to expand their knowledge and understanding of capital markets. In addition to generating long-term returns, BCI disbursed $8.6 billion in client distributions in fiscal 2021. These distributions are used to pay the pensions to retirees within British Columbia, as well as provide a range of benefits such as financing government programs that focus on arts and culture, sports development, training, and skills development within British Columbia. As of March 31, 2021, BCI has 30 clients in three separate classifications: • Pension Funds • Insurance Funds • Special Purpose Funds PENSION FUNDS We invest on behalf of 12 public sector pensions plans. As our largest client group, pension funds account for 77.1 per cent (or $153.8 billion) of the assets under management. BCI's investment activities help our clients secure the pensions and post-retirement group benefits of more than 690,000 plan members. Clients establish the investment policies and set the performance targets for their pension funds. They also define their unique long-term strategic asset allocations, based on their plans' characteristics, circumstances, objectives, and risk tolerances. Our objective is to capitalize on our well-constructed, diversified portfolio to create value — aiming to meet or exceed clients' return objectives without taking on unnecessary risk. Returns are important — for every $100 a pension plan member receives in retirement benefits, on average $75 is provided by BCI's investment activities. Created by the Public Sector Pension Plans Act in 2000, BCI provides investment services to British Columbia's public sector pension plans, insurance funds, and other government entities. "Clients first" is a core value and we work in our clients' best financial interests at all times. Our clients are not mandated to use BCI and have voluntarily chosen us as their investment manager. We invest in line with our clients' investment objectives and policies, as well as applicable legislation and regulations. CLIENT PROFILE (%) As at March 31, 2021 1 1 Percentage based on net assets. 77.1 Pension Funds 21.0 Insurance Funds 1.9 Special Purpose Funds 2 0 2 0 - 2 0 2 1 C o r p o r a t e A n n u a l R e p o r t M a n a g e m e n t ' s D i s c u s s i o n a n d A n a l y s i s 2 1

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