The BC-based fund cites a narrower path to alpha as one of the few reasons to close its strategies
British Columbia Investment Management Corp. (BCI) is winding down two internally managed global stock-picking strategies that together oversee roughly $4.3 billion, pointing to a steadily shrinking universe of publicly traded companies as a key driver of the decision, Bloomberg News recently reported.
The two strategies being closed — Global Active Thematic Equities and Global Active Fundamental Equities — represent approximately 7.2 per cent of BCI's public equities portfolio, the Victoria-based pension manager confirmed in an emailed statement to Bloomberg.
BCI, which managed $251.6 billion in net assets as of March 31, 2025, said the move reflects a fundamental shift in the global equity landscape rather than a retreat from active investing overall.
In comments provided to Bloomberg, Daniel Garant, BCI's global head of capital markets and credit investments, said the case for active fundamental stock selection in developed markets has weakened considerably. He cited a smaller pool of listed companies, growth firms remaining private for longer periods, heightened index concentration, and fewer opportunities to generate alpha as the principal headwinds.
Bloomberg notes that the surge in passive investing has reshaped global markets, with investors funneling capital into index funds and low-cost exchange-traded funds. Concentration in major benchmarks — fueled in part by the so-called Magnificent Seven group of mega-cap technology and growth stocks — has further eroded the rewards available to active stock pickers.
BCI also pointed to the growing role of private capital in keeping high-quality businesses out of public markets for longer, according to Bloomberg. The pension manager added that regulatory costs and quarterly reporting requirements are deterring other firms from listing publicly altogether.
Despite the closures, BCI told Bloomberg it intends to stay active in several other segments of the equity market, including Canadian large-cap stocks, global quantitative active strategies, and global emerging markets.
Meanwhile, the pension manager said responsibilities have been reassigned for several members of its capital markets team, while several other employees have departed BCI because of the changes, according to Bloomberg.
