Nov. 4, 2008
FREDERICTON (CNB) - The mid-year investment performance results for the six-month period ending Sept. 30 were released today by the New Brunswick Investment Management Corporation (NBIMC).
"The investment environment continued to be difficult and very volatile during the first half of our fiscal year," said John A. Sinclair, president and chief executive officer of NBIMC. "Unfortunately public equity market returns were significantly affected by a crisis of confidence in the international financial services sector and related concerns with respect to the impact on the global economy."
The overall six-month gross rate of return for funds under management of the corporation was -6.34 per cent, while the longer-term annualized five-year return was +7.51 per cent.
"Although the equity market decline was mitigated to a degree by our diversified strategy of investing in many other types of assets, industries and countries, it was significant enough to affect the overall returns for the period adversely," said Sinclair.
Six-month investment returns for the public service, teachers' and judges' plans were -6.44 per cent, -6.21 per cent, and -6.45 per cent, respectively. The returns to the three different client funds are the result of different proportions of the various investment assets held by each fund.
"While public equity markets have weakened further over recent weeks, we would like to remind stakeholders that the NBIMC has experienced periods of market weakness in the past," said Sinclair. "We are very focused on managing the challenges of the current market environment so that we can continue to realize cost effective long-term investment returns that meet the actuarial requirements of the plans under our management."
NBIMC is the Crown corporation that manages the pension assets of more than 46,000 members, including teachers, judges and public servants.
More information, including the 2007-08 annual report, is available at http://www.nbimc.com/Home.aspx.
MEDIA CONTACT: John A. Sinclair, president and chief executive officer, NBIMC, 506-444-5800.