Key Takeaways
- • IMCO has been selected to manage approximately $300 million in pension assets for the City of Hamilton, consolidating three legacy defined benefit plans covering more than 1,000 retirees, deferred members and beneficiaries, according to IMCO's press release.
- • The mandate is the first time one of Ontario's largest municipalities has outsourced legacy pension fund management to IMCO.
- • The mandate covers only Hamilton's closed legacy plans; its open pension fund and active pension fund remain with other managers.
- • IMCO, which manages $90.7 billion in total assets on a not-for-profit, cost-recovery basis, cites rising investment complexity as a driver of outsourcing among Ontario public sector organizations.
Summary
The Investment Management Corporation of Ontario (IMCO) has been selected to manage approximately $300 million in pension assets for the City of Hamilton, according to a press release issued Thursday. The mandate consolidates three legacy defined benefit (DB) plans that cover more than 1,000 retirees, deferred members and beneficiaries. IMCO said the mandate will begin with an onboarding process in which it will work with the city on investment decision-making and transition planning for the legacy portfolios.
The arrangement marks the first time one of Ontario's largest municipalities has outsourced legacy pension fund management to IMCO. It is limited to the city's closed legacy plans, which are distinct from its "open" pension fund, managed separately by another manager. Hamilton's active pension fund will also continue to be run by a separate provider, the firm said.
Bert Clark, president and CEO of IMCO, said the decision "reflects the strength of our investment platform," and emphasized the firm's end-to-end, cost-effective investment solution, governance, liquidity and risk management, and reporting and disclosure capabilities for managing public funds.
Clark also pointed to rising investment complexity as a factor pushing more public sector organizations toward external management. He noted that many Ontario public sector organizations whose core mandate is not investing continue to manage public funds directly, but that "in an increasingly complex investment environment, more are recognizing the value of joining IMCO."
IMCO manages $90.7 billion in total assets and operates on a not-for-profit, cost-recovery basis. It offers clients asset mix advisory services, access to a diversified range of asset classes including private markets and alternatives, and portfolio-level risk management and reporting.
The arrangement marks the first time one of Ontario's largest municipalities has outsourced legacy pension fund management to IMCO. It is limited to the city's closed legacy plans, which are distinct from its "open" pension fund, managed separately by another manager. Hamilton's active pension fund will also continue to be run by a separate provider, the firm said.
Bert Clark, president and CEO of IMCO, said the decision "reflects the strength of our investment platform," and emphasized the firm's end-to-end, cost-effective investment solution, governance, liquidity and risk management, and reporting and disclosure capabilities for managing public funds.
Clark also pointed to rising investment complexity as a factor pushing more public sector organizations toward external management. He noted that many Ontario public sector organizations whose core mandate is not investing continue to manage public funds directly, but that "in an increasingly complex investment environment, more are recognizing the value of joining IMCO."
IMCO manages $90.7 billion in total assets and operates on a not-for-profit, cost-recovery basis. It offers clients asset mix advisory services, access to a diversified range of asset classes including private markets and alternatives, and portfolio-level risk management and reporting.
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