Page 27 - Transforming To Stay Successful

A Closer Look

We began our transformation in 2015, and although we have more work to do, we can already see

examples of our business plan in action.

1 Strategy One:

EXPANDING & DIVERSIFYING OUR
INVESTMENT STRATEGIES

With this strategy, we’ll review our current methods, of active management (deliberately and strategically
identify possibilities for taking advantage of market selecting companies for the portfolio) over indexing.
and active risk, and develop more sophisticated
approaches that align with today’s environment. We’re introducing new cost effective products,
as well as the use of a variety of tools — such
It’s a strategy that encourages innovation and
an entrepreneurial spirit as we develop and propose as derivatives and leverage — to rebalance portfolios.
Certain derivative products can efficiently reduce
new approaches.
portfolio risk, while allowing for the quicker transition
Our pooled funds (many of which were started in of assets. Similarly, leverage allows us to take
bcIMC’s early years) and strategies are being reviewed; advantage of low interest rates, freeing up capital
we’re looking at ways to capture opportunities within to be used elsewhere. Flip to page 29 for definitions of
the global markets. We’ll streamline and wind down these tools.
outdated products, as well as be more cost effective
As our strategies increase in complexity, we know a
within certain funds.
robust culture of investment risk management is required.
In this low return landscape, simply matching the public Between now and 2020, Investment Risk, Strategy &
markets and pursuing passive investment strategies isn’t Research (IRSR) will develop the methodology, risk
enough to meet our clients’ basic return objectives. Our measurement tools, and reports for: market, credit,
new investment model emphasizes a greater degree currency, and liquidity risk — part of strategy two,
strengthening the base.

THE STRATEGIES THAT DRIVE OUR TRANSFORMATION 27