Page 22 - Transforming To Stay Successful

Our Competitive Advantages

H ere at BCI, “challenge” is just another word for “opportunity.” It all

depends on how you approach it. Despite the complexity of our
operating environment, and the difficulties we face along with
other institutional investors, we have competitive advantages that we can
capitalize on — and you’ll notice our strategies do just that.

LONG-TERM

Because of this low-return environment, we’re seeing a trend with institutional
investors across Canada and around the world: they’re increasing their
allocations to more long-term and illiquid assets.

Similarly, our new investment strategy allows our clients to increase their
allocations to illiquid markets such as private equity, mortgages, real estate,
renewable resources, and infrastructure. A typical client portfolio could shift
from a 25 per cent to a 42 per cent allocation by the end of F2020. This shift
significantly increases the probability of meeting our clients’ basic rate of
return due to the inflation protection characteristics, and the stable returns
and consistent cash flows they provide. It’s an approach that aligns well with
our clients’ long-term obligations (i.e. our pension fund clients don’t have an
immediate need to pay pensions).

22 WHO WE ARE — A CLOSER LOOK