British Columbia Investment Management Corp. (BCI) is closing two global stock-picking strategies that oversee approximately $4.3 billion, as it contends with a contracting pool of publicly listed firms. The pension fund manager is retiring two internally managed global strategies focused on thematic and fundamental equities, BCI said in an emailed statement to Bloomberg. The strategies, Global Active Thematic Equities and Global Active Fundamental Equities, make up about 7.2 per cent of its public equities portfolio.
Reasons for the Closure
According to BCI's global head of capital markets and credit investments, Daniel Garant, the opportunity set for active fundamental stock selection in global developed equities has reduced materially. He cited fewer listed companies, growth companies staying private for much longer, higher index concentration and a narrower path to alpha. The rise of passive investing has further reshaped markets in recent years, with investors directing more capital toward index funds and low-cost exchange-traded funds. At the same time, increasing concentration in major benchmarks, driven in part by the so-called Magnificent Seven group of tech and growth stocks, has diminished the payoff of stock picking.
Private Capital Impact
Private capital is keeping high-quality businesses private for longer, BCI said in the statement. Other firms are staying away from the public markets because of regulatory costs and quarterly reporting mandates, according to the pension manager.
BCI's Future Plans
BCI, which had $251.6 billion in net assets as of March 31, 2025, said it will remain active in other areas of equities, including Canadian large-cap stocks, global quantitative active strategies and global emerging markets. The pension manager also noted that it has shifted the responsibilities of several individuals within capital markets, and that several others have left BCI.
