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British Columbia Municipal Pension Plan

PRI reporting framework 2017

You are in Organisational Overview » Basic Information

Basic Information

OO 01. Signatory category and services

01.1. Select the type that best describes your organisation or the services you provide.

01.2. Additional information. [Optional]

The Municipal Pension Plan (MPP) is a jointly trusteed defined benefit pension plan governed by a Joint Trust Agreement. The partners to the Agreement are the Municipal Employees’ Pension Committee, as the member partner, and the Province of British Columbia and the Union of British Columbia Municipalities, as the employer partner. The Partners and appointing authorities are responsible for nominating and appointing the sixteen trustees and sixteen alternate trustees representing Plan members and Plan employers. The Agreement describes the composition and powers of the Municipal Pension Board of Trustees (Board) and provides the authority for the Board to make MPP rule changes, if changes are cost-neutral to the Plan. Unless required for legal compliance, changes that result in contribution rate changes, or cause or increase an unfunded liability, can only be initiated by the Partners. The Board is fully responsible for the management of the Plan, including investment of the assets and Plan administration. The Chair and Vice Chair of the Board are appointed by the other trustees. British Columbia Pension Corporation provides benefit administration services and British Columbia Investment Management Corporation (bcIMC) provides investment management services as agents of the Board.


OO 02. Headquarters and operational countries

02.1. Select the location of your organisation’s headquarters.

Canada

02.2. Indicate the number of countries in which you have offices (including your headquarters).

02.3. Indicate the approximate number of staff in your organisation in full-time equivalents (FTE).

1 FTE

02.4. Additional information. [Optional]


OO 03. Subsidiaries that are separate PRI signatories

03.1. Indicate whether you have subsidiaries within your organisation that are also PRI signatories in their own right.

03.3. Additional information. [Optional]


OO 04. Reporting year and AUM

04.1. Indicate the year end date for your reporting year.

31/12/2016

04.2. Indicate your total AUM at the end of your reporting year, excluding subsidiaries you have chosen not to report on.

Total AUM
trillions billions millions thousands hundreds
Currency
Assets in USD
trillions billions millions thousands hundreds

04.4. Additional information. [Optional]

Net assets are reported as at December 31st, 2016, except for illiquid assets (Real Estate, Private Equity and Infrastructure) which are audited figures at the end of December 2015. Audited figures for these asset classes will only be available after the close of the PRI reporting period.  CAD $45,657,914,200 equals USD $34,046,392,156.


OO 06. How would you like to disclose your asset class mix

New selection options have been added to this indicator. Please review your prefilled responses carefully.

06.1. How you would like to disclose your asset class mix.

Internally managed (%)
Externally managed (%)

 

Listed equity 10-50% 47.3 0 0
Fixed income 10-50% 16.3 0 0
Private equity <10% 5.6 0 0
Property 10-50% 14.3 0 0
Infrastructure <10% 7.9 0 0
Commodities 0 0 0 0
Hedge funds 0 0 0 0
Forestry <10% 0.7 0 0
Farmland <10% 0.6 0 0
Inclusive finance 0 0 0 0
Cash <10% 5.9 0 0
Other (1), specify <10% 1.3 0 0
Other (2), specify 0 0 0 0

'Other (1)' specified

          An alternative passive risk balanced asset allocation strategy.
        

06.2. Publish our asset class mix as per attached image [Optional].

06.3. Provide contextual information on your AUM asset class split. [Optional]

bcIMC provides a combination of investment advisory and implementation services to the Municipal Pension Board of Trustees. bcIMC is accountable to the trustees for the performance of the fund, while the trustees retain governance oversight and set the strategic asset allocation and overall investment policy. bcIMC, as the board's agent, acts in a fiduciary capacity and is responsible for determining tactical asset allocation and manages the day-to-day running of the fund, including hiring and firing external investment managers.bcIMC has a role that goes beyond that of a typical manager, effectively functioning as the board's internal investment staff. This role is further articulated in the board's statement of investment policies and procedures and the board's funds investment and management agreement with bcIMC.


OO 07. Fixed income AUM breakdown

07.1. Provide to the nearest 5% the percentage breakdown of your Fixed Income AUM at the end of your reporting year, using the following categories.

Internally managed
65 SSA
10 Corporate (financial)
25 Corporate (non-financial)
0 Securitised
Total 100%

OO 08. Segregated mandates or pooled funds (Not Applicable)


OO 09. Breakdown of AUM by market

09.1. Indicate the breakdown of your organisation’s AUM by market.

 

 

Developed Markets

 

 

Emerging, Frontier and Other Markets

Total
100%

09.2. Additional information. [Optional]

The Board recognizes that strong corporate governance and responsible corporate behavior pertaining to environmental and social factors will generally contribute to better long-term financial performance of a company. This belief and the MPP approach to responsible investment are set out in sections 4.8 and 12 of our Statement of Investment Policies and Procedures ("SIPP"). These sections are set out below:

Section 4.8 - Investment Beliefs: The Board believes that companies that take environmental, social and governance (ESG) matters into account have less risk and generate long-term value for investors compared to companies with less robust practices.By applying these principles, the Board recognizes that effective research, analysis and evaluation of ESG issues are fundamental to assessing the value and performance of an investment over the long-term.

Section 12: Resposible Investing & Voting Rights

12.1  At all times, the Board’s responsible investing approach is to be conducted within the framework of fiduciary responsibility.  It shall therefore be implemented in a manner which does not interfere with the efficient investment of the Fund’s assets to achieve investment return objectives, which are in the best financial interests of the Plan’s current and future beneficiaries.

12.2  Pursuant to Section 4.8 and subject to Section 12.1, favourable consideration is to be given by bcIMC and its investment managers to investment opportunities in corporations that meet or exceed all environmental regulations and aspire to reduce the impact of their operations on the environment,  apply best practices for corporate governance, adopt good standards of safety and employee welfare, and be responsible in their operations by effectively managing relationships with suppliers, customers and communities.

12.3  In keeping with the Board’s fiduciary responsibilities and framework, the Board believes that environmental, social, and corporate governance (“ESG”) issues can affect investment performance to varying degrees across companies, sectors, regions, asset classes and through time.  In this regard, the Board supports the UN-supported Principles for Responsible Investment, introduced in April 2006 (http://www.unpri.org/principles/). By applying these principles, the Board recognizes that effective research, analysis and evaluation of ESG issues is a fundamental part of assessing the value and performance of an investment over the long-term. 

12.4  The Board delegates its voting rights to bcIMC and instructs bcIMC to act in the best financial interests of the Fund. In addition to proxy voting, the Board expects bcIMC to use shareholder engagement to encourage companies to focus on long-term value creation by effectively managing ESG risks that may emerge over time and materially affect the valuation of the company and/or asset.  The Board believes that engagement is a more effective tool for seeking to initiate change to and influence corporate practices than divesting.  The Board expects bcIMC, as an active and engaged investor, to encourage the companies within its portfolio to apply good corporate governance practices, effectively manage their business relationships, and be responsible in their operations.  The Board further expects that bcIMC’s engagement activities are based on strategic ESG priorities and, as a result, ESG matters are addressed to the extent that they influence risk and return of the Fund.

12.5  bcIMC shall provide the Board with copies of its corporate governance guidelines and at least once a year the Board shall review bcIMC’s voting record.

bcIMC is our sole investment manager and they are also a signatory to the PRI as an investment manager.


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