New Brunswick Investment Management Corporation

NBIMC pension fund returns improve (09/10/26)

NB 1672

Oct. 26, 2009

FREDERICTON (CNB) - Thousands of civil servants, teachers and judges in New Brunswick who have their pension funds managed by the New Brunswick Investment Management Corporation (NBIMC) were informed today that overall investment returns of 16.28 per cent have been achieved for the six-month period ended Sept. 30, 2009.

Investment returns for the public service, teachers', and judges' plans were 16.28 per cent, 16.27 per cent, and 16.28 per cent, respectively. The difference in returns to the three funds comes about through the different proportions of equity and fixed income assets held by each fund. This performance has helped offset the results of the last reporting period, which were affected by the severe downturn in global investment markets.

John Sinclair, NBIMC president and CEO said that with the improvement in the current financial position of the pension funds, he remains cautious but optimistic that global economic conditions are improving.

"The financial markets remain volatile, and risk is a continuing reality for investment managers everywhere," said Sinclair. "Here at NBIMC, we continue to take great care in diligently managing that risk. The pension funds are in a position of strength due to their well-diversified investment policies, our internal focus on risk managementm and strong control processes."

Long-term investment performance remains the primary focus for the corporation, and Sinclair said that there is good news there as well. He pointed out that the long-term investment performance of the pension funds has also improved. The returns of the funds since NBIMC's inception are now again in excess of the required rate of return target set out by the plan's actuary.

The NBIMC was formed in 1996 to operate at arm's-length from government to manage the pension assets of more than 49,000 plan members, including teachers, judges and public servants.

09/10/26

MEDIA CONTACT: John A. Sinclair, President and CEO, New Brunswick Investment Management Corporation, 506-444-5800.

09/10/26