Investment Management Corporation of Ontario (IMCO) reported an average return of 5.6 per cent in 2023, below its benchmark estimate of 6.6 per cent. Its real estate portfolio declined 13 per cent, finishing the year with $9.8 billion in assets. (The Logic)

Talking point: IMCO manages $77.4 billion on behalf of several public pension funds in the province. The fund’s high exposure to offices in particular dragged down performance. The assets—which have been hit hard by the shift to remote work—accounted for 33 per cent of its real estate portfolio. In recent years, the fund manager has been shifting its asset mix away from office and retail properties in favour of residential and industrial real estate. IMCO CEO Bert Clark told The Globe and Mail he hopes “the worst is behind us,” but that “it’s still going to be an area that requires some heavy lifting on our part.”