My earlier article pointed out the vast difference in overhead costs for government investment agencies in British Columbia and Washington State. One of our readers asked:
"How did our group do compared to the Washington [State] group. Is our investment strategy so much better they deserve more money?"A quick review of agency reports provides the information that follows:
Victoria, B.C., July 26, 2011
"British Columbia Investment Management Corporation (bcIMC) today announced that it recorded a one-year annual return of 10.8 per cent, net of fees, for combined pension plans in the 2011 fiscal year. This exceeds a combined benchmark of 9.7 per cent and provides over $685 million in additional value, net of all investment management fees."Message from the Chair, Washington State Investment Board, 2011, page 6
"...Now, after enduring the world’s most daunting financial crisis in recent history, I find myself once again reporting remarkable results for the CTF, which ended FY 2011 with a 21.1 percent rate of return. That is just two basis points shy of the high watermark of four years ago when this country was on the brink of nose diving into a pit of economic decline, loss, volatility, and uncertainty..."Ouch! Apparently spending three times as much on senior executives does not guarantee better results.
Here is a list of bcIMC investments valued over $100 million as at March 31, 2011. These represent a little less than half of bcIMC's complete portfolio. Apparently, there is little regard for making ethical investments. Among other questionable choices, you'll find British American Tobacco, a company that boasts of selling its products in 180 markets around the world.
Mar 2011 Investments Over $100 m Recommend this post