New Brunswick Investment Management Corporation-managed pension funds maintain strong performance23 August 2011
FREDERICTON (CNB) – The stakeholders of New Brunswick's public service, teachers’ and judges’ pension plans continue to receive positive news from the New Brunswick Investment Management Corporation.
The corporation produced a 10.42 per cent overall gross (not adjusted for inflation) rate of return for the 2010-11 fiscal year.
The long-term annualized return (since the corporation was formed in 1996) is now 6.75 per cent, despite sudden and unforeseen world economic challenges such as the financial crisis two years ago.
"Most importantly, the annualized real return (after adjusting for inflation) since 1996 is 4.74 per cent," said John A. Sinclair, president and chief executive officer of the corporation.
This annualized return exceeds the primary long-term four per cent real return objective set out by each pension plan's independent actuary.
"Our long-term investment returns are helping to keep the three provincial pension funds under the management of the corporation on track with the provincial government's goal from the early 1990s of being fully funded by the end of a 25-year period," said Sinclair.
According to Sinclair, the corporation's positive investment performance results for the specific pension funds it manages reflect its long-term investment strategy.
“This strategy is to continue to participate in market gains as global economies slowly improve while providing protection against potential short-term market shocks such as we have seen in recent weeks," said Sinclair.
Investment returns for the public service, teachers' and judges' plans were 10.42 per cent, 10.41 per cent and 10.43 per cent, respectively. The returns for the different client pension funds come about through the different proportions of investment assets held by each fund.
Net assets under management as of March 31, 2011, were $9.096 billion, up from $8.34 billion as of March 31, 2010. The increase in net assets under management resulted from $866 million in net investment valuation gains and $144.6 million in special funding payments from the plans' sponsors, being offset by net pension payouts of $252.2 million.
The New Brunswick Investment Management Corporation is a Crown corporation that invests the pension assets of more than 50,000 plan members. Its 2010-11 annual report is online.
● New Brunswick Investment Management Corporation: www.nbimc.com