Vestcor Announces Completion of Investment and Administration Corporation - Announces Positive Financial Results for 2016
The Vestcor Group of Companies (Vestcor) has released its inaugural Annual Report, including information on its two private not-for-profit companies, Vestcor Investment Management Corporation (VIMC) and Vestcor Pension Services Corporation (VPSC).
“Vestcor has been created to deliver a cost efficient, integrated investment management, pension and benefit service delivery platform to a number of public sector entities” said John A. Sinclair, President and Chief Executive Officer of both VIMC and VPSC. “The success of our cost-effective investment management program, in combination with our pension and benefit administration services capabilities will continue to provide exceptional value to our clients in a challenging environment”.
Located in Fredericton, New Brunswick, Vestcor provides global investment management services to eight different public sector client groups representing approximately $16 billion in assets under management, and administration services to 11 public sector pension plans and 5 employee benefit plans.
VIMC also announced a 6.16 percent overall investment return for total assets under management for the year ended December 31, 2016. The Corporation provides investment management services for the NB Public Service Pension Plan and New Brunswick Teachers’ Pension Plan as well as six other public sector clients.
“We continue to be pleased that our overall long-term performance continues to exceed our clients’ objectives” said Sinclair. VIMC specifically achieved an overall 2016 gross rate of return of 6.53 percent for the Pension Funds under discretionary management, which equated to a 5.03 percent return on a real return (adjusted for inflation) basis. The long-term annualized Pension Fund real return, since the Corporation was formed as the N.B. Investment Management Corporation in 1996, continues to exceed client funding requirements at 5.29 percent. Sinclair also pointed out that, “Our discretionary investment management program created returns that exceeded the portfolio benchmarks established by our clients by 1.21 percent during the year.”
The Vestcor Group 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, while the operations of the Pension and Employee Benefits Division of the Province of New Brunswick’s Department of Human Resources were transferred to Vestcor Pension Services Corporation. Its team of more than 130 New Brunswick-based service professionals provides innovative, cost-effective investment management and pension and benefit administration services solutions that meet the requirements of approximately 90,000 individual members and 134 employer groups.
Further information about Vestcor is available online at Vestcor.org. A copy of the more detailed 2016 Annual Report is available at Vestcor.org/2016annualreport.
John A. Sinclair
President and Chief Executive Officer