Nova Scotia Workers’ Compensation looking for outsourced CIO

Workers’ Compensation Board of Nova Scotia, Halifax, is searching for a firm to provide outsourced CIO services for the board, which has C$1.5 billion (US$1.4 billion) in assets.

The investment portfolio currently is overseen by the board’s investment committee, said Denise Corra, board spokeswoman.

The board decided to outsource the chief investment officer duties “given the growth in the size and complexity” of its investments, Ms. Corra said. Also, the board wants the “special expertise” of an outsourced CIO to move into new asset classes like hedge funds and infrastructure, she said.

Its current target asset allocation is 30% fixed income; 20% each Canadian equity and global equities; and 10% each U.S. equity, international equity and real estate.

Active strategies are used for half of the Canadian equity portfolio and all of its U.S., international and global equities and real estate. Passive strategies are used for half of the Canadian equities allocation and for all fixed-income investments. The board also uses a passive currency overlay strategy with a hedge ratio of 50% of the total foreign currency exposure.

The board’s current managers are TD Asset Management; Connor, Clark & Lunn Investment Management; AJO; Grantham, Mayo, Van Otterloo & Co.; Aberdeen Asset Management; Baillie Gifford; and Great-West Life.

The RFP is available on a provincial procurement website. Proposals are due at 2 p.m. Atlantic Daylight Time on Aug. 29. A selection date has not been set, Ms. Corra said, although the board is expected to review a shortlist of finalists sometime in the fall.

Investment consultant Eckler is assisting.