Vestcor Continues to Surpass Client Goals In 2021 | June 15, 2022
June 15, 2022
Fredericton, NB – Vestcor Inc. (Vestcor) released its 2021 Annual Report, which is now available at vestcor.org/annualreports. Through 2021, the organization continued its long-term record of success in investment performance and administration service delivery. Vestcor, an independent not-for-profit company based in Fredericton, NB, offers global investment management and pension and benefit administration services to a number of public sector entities.
Even with the ongoing challenges brought on by the global COVID-19 pandemic, assets under its management again reached a new all-time high of $21.0 billion in 2021, equating to an overall gross return of 9.46% (or $1.9 billion), while the gross return for pension clients specifically was 9.48%. Most importantly, the overall gross longer term four-year pension investment performance of 7.52% per annum continued to exceed the targets set by shared risk/target benefit pension plan clients, which require Vestcor to abide to lower risk approaches, as compared to traditional defined benefit pension plans.
Adding to this success was a significant return secured above clients’ investment policy benchmarks. This active management by Vestcor’s highly specialized employees led to an outperformance of client benchmarks by a record 2.23% during the year, adding $426 million in value to clients, after the deduction of investment management fees.
“We are very pleased to once again share how our not-for-profit design allows us to provide low management fees without compromising the returns of our clients.” said John A. Sinclair, President and Chief Executive Officer. “In addition, our efforts to attract and retain the specialized workforce required to succeed in our industry is evident through our continued active management returns, which creates value above our clients’ investment benchmarks.”
Vestcor’s clients benefit greatly from the cost-efficient, not-for-profit model. In 2021, the management expense ratio was 0.13%, well below the average expense ratio of its peers. Administration service fees remained the second most cost efficient as compared to a select group of national peers.
The administration service team continued to adapt to the challenges arising from the COVID pandemic, ensuring services to clients and their 106,000 members were uninterrupted. While volumes and member inquiries increased significantly through the year, processing times for pension estimates, retirements, terminations, and marriage breakdowns remained strong.
A Partner in Creating and Delivering Sustainable Financial Security.
Located in Fredericton, New Brunswick, Vestcor provides global investment management services to 10 different public sector client groups representing approximately $21.0 billion in assets under management as at December 31, 2021, and administration services to 11 public sector pension plans and 4 employee benefit plans.
Vestcor’s team of more than 140 New Brunswick-based service professionals provides innovative, integrated, cost-effective investment management and pension and benefit administration services solutions to public sector entities. Vestcor currently services the requirements of over 106,000 individual plan members and 140 participating employer groups.
Further information about Vestcor including the 2021 Annual Report, is available online at vestcor.org.
John A. Sinclair, President and Chief Executive Officer, 506-453-2296