Four Canadian investment clients chose Investment Management Corp. of Ontario to provide investment management services, said a Dec. 5 news release.
IMCO will manage assets totaling about C$2.6 billion ($1.92 billion) for the four funds: the Financial Services Regulatory Authority of Ontario, Tarion Warranty Corp., the city of Ottawa and Ontario Clean Water Agency.
IMCO will oversee assets of C$1.2 billion for the Pension Benefits Guarantee Fund, administered by FSRA; C$702 million for Tarion's Guarantee Fund; C$633 million for the City of Ottawa's OC Transpo employees' defined benefit pension plan; and C$50 million for OCWA's reserve fund.
A spokesperson for IMCO, Toronto, confirmed that the pension fund had no prior relationships with the four entities, and noted that the $633 million figure represents all assets of OC Transpo plan.
FSRA is an independent Ontario regulatory agency which focuses on protecting consumers and pension plan beneficiaries. FSRA CEO Mark E. White administers the PBGF, which provides protection to Ontario beneficiaries of single-employer defined benefit pension plans when their employer cannot meet funding obligations under the Pension Benefits Act.
"Increased returns on PBGF assets will provide greater protection to these beneficiaries, and we are confident in IMCO's ability to improve these returns," stated White in the release.
Tarion is an independent not-for-profit consumer protection organization designated by the Ontario government to administer the Ontario New Home Warranties Plan Act, the province's new home warranty and protection program.
The city of Ottawa sponsors the closed OC Transpo employees' defined benefit pension plan, which provides retirement benefits to more than 2,000 public transit workers.
IMCO added it will start the process for bringing its new clients on board in 2024.
IMCO managed C$73.3 billion in assets as of Dec. 31, 2022.