BCI Closes Two Global Stock Funds Amid Shrinking Public Market Opportunities

The British Columbia Investment Management Corp. (BCI) announced the closure of two internally managed global equity strategies, Global Active Thematic Equities and Global Active Fundamental Equities, which collectively oversee approximately $4.3 billion. This decision represents about 7.2% of its public equities portfolio. BCI cited a materially reduced opportunity set for active fundamental stock selection in global developed markets as the primary driver. Key factors include a contracting number of publicly listed companies, high-growth firms remaining private for longer periods, and increased concentration in major market indices, which has narrowed the path to generating alpha. The rise of passive investing and regulatory costs further discourage public listings. Despite these closures, BCI, which reported $251.6 billion in net assets as of March 2025, stated it will maintain active positions in Canadian large-cap stocks, global quantitative strategies, and emerging markets. The move has resulted in internal personnel shifts and departures within the capital markets division. This strategic pivot reflects broader market trends where active stock picking faces diminishing returns compared to passive index tracking.