Vestcor completes successful first full year of operations | June 25, 2018
June 25, 2018
The newly integrated Vestcor Inc. has released its 2017 Annual Report.
“We are very pleased to report that our investment activities have continued to meet both the specific long-term return and risk objectives of our clients with a management expense ratio that is lower than the previous year” said John A. Sinclair, President and Chief Executive Officer. “Our administration teams also experienced significant improvements on a number of client-based service delivery metrics during the year.”
Located in Fredericton, New Brunswick, Vestcor provides:
- Global investment management services to nine different public-sector client groups representing approximately $16.6 billion in assets under management; and
- Administration services to 11 public sector pension plans and 5 employee benefits plans.
The overall investment return for total assets under active management for the year ended December 31, 2017 were 8.03 percent, with a management expense ratio of approximately 0.12 percent. “We are pleased that our overall long-term performance continues to exceed our clients’ objectives” said Sinclair. Pension Funds under active management specifically achieved an overall 2017 return of 8.05 percent, exceeding client portfolio benchmarks by approximately 1.01 percent during the year.
The long-term annualized Pension Fund return, since the Corporation was formed as the N.B. Investment Management Corporation in 1996, continues to exceed specific client funding requirements at 7.27 percent.
Sinclair also pointed out that, “We were pleased to finalize an investment management agreement with another new Target Benefit Pension Plan client during the year. Our extensive experience in managing a number of Target Benefit Pension Plans, along with our low-cost structure, continues to align well with our client needs.”
Vestcor was created through Province of New Brunswick legislation in July 2016 (the Vestcor Act). As of October 1, 2016, the N.B. Investment Management Corporation was continued as Vestcor Investment Management Corporation (VIMC), while the operations of the Pension and Employees Benefits Division of the Province of New Brunswick’s Department of Human Resources were transferred to Vestcor Pension Services Corporation (VPSC). On January 1, 2018 both VIMC and VPSC were subsequently amalgamated into one integrated entity named Vestcor Inc.
Its team of more than 130 New Brunswick-based service professionals provides innovative, cost-effective investment management and pension and benefits administration services solutions to public sector entities.
Vestcor currently provides services to approximately 89,000 individual members and 134 employer groups.
Further information about Vestcor including the 2017 Annual Report, is available on the new Vestcor.org.
John A. Sinclair
President and Chief Executive Officer