IMCO Triples Canadian Public Equities Exposure

Over the past year, IMCO increased its allocation to Canadian public equities, reflecting a long-term conviction in Canada's investment opportunities and confidence in the country's economic future.

We spoke with Angus Botterell, Senior Managing Director and Head of Public Equities, about what drove the decision and why Canada is playing an increasingly important role in IMCO's portfolio.

IMCO recently completed the tripling of its Canadian public equities allocation. What drove that decision?

The decision came as part of a broader review of our Public Equities program. As we evaluated how we wanted the portfolio to evolve, we saw a compelling opportunity to increase our exposure to Canada.

We believe Canada is well positioned to benefit from several long-term trends shaping the global economy. Increasing our Canadian allocation reflects that conviction while maintaining a globally diversified portfolio designed to deliver strong long-term returns for our clients.

Today, Canadian public equities represent approximately 10 per cent of the Public Equities portfolio, marking the completion of that transition.

Why are you optimistic about Canada's investment outlook?

Canada has many of the qualities global investors are looking for today. It has strong institutions, a stable financial system, abundant natural resources and companies operating in sectors that remain essential to the global economy.

As markets continue to adapt to a changing economic environment, we believe Canada is well positioned to benefit from many of the long-term forces reshaping global growth, most recently outlined in IMCO's flagship research report, World View. Those structural shifts give us confidence in Canada's long-term investment potential.

For IMCO, there are additional advantages. Our clients' liabilities are denominated in Canadian dollars, so investing in Canadian companies can help reduce currency risk over the long term. We also benefit from deep knowledge of the domestic market, its regulatory environment and the businesses that operate here. Together, those advantages give us a home-market edge that strengthens how we identify opportunities and build long-term portfolios. 

What role does Canada play within a globally diversified portfolio?

Every investment has a role to play within the broader portfolio, and Canada offers characteristics that complement global exposure.

The Canadian market provides access to sectors and businesses, such as energy, minerals and natural resources that are less represented elsewhere, helping create a more balanced and diversified portfolio. As a Canadian institutional investor, we also benefit from a deep understanding of the domestic market, its companies and the operating environment, which can strengthen our investment decision-making over the long term.

Beyond today's public markets, what will it take to build more Canadian companies capable of scaling and eventually going public?

Strong public markets begin with strong private companies. Building more successful Canadian public companies requires an environment where businesses can access the capital, talent and customers they need to grow and compete globally.

Encouragingly, we're seeing growing momentum across Canada's innovation ecosystem. There is increasing collaboration between investors, entrepreneurs and governments to help more companies scale and remain headquartered in Canada.

Over time, that has the potential to strengthen Canada's public markets, create more investment opportunities and give long-term investors like IMCO access to an even broader range of high-quality Canadian businesses.

What does this milestone mean for IMCO?

Investing in Canada happens in stages.

Long-term investing isn't about waiting until every opportunity is obvious. It's about recognizing where the world is heading and positioning your portfolio accordingly. We believe Canada is well positioned to benefit from many of the long-term trends shaping the global economy. Completing this increase reflects that conviction and ensures we're ready to participate as those opportunities continue to unfold.

Learn more about IMCO Public Equities.