Alberta Investment Management Corporation Assets and Investment Strategy

The Alberta Investment Management Corporation (AIMCo) is responsible for managing the assets of the Government of Alberta's pension and endowment funds.

AIMCo's total assets under management are approximately $143 billion, making it one of the largest institutional investors in Canada.

With its vast resources, AIMCo aims to generate strong investment returns to support the province's pension and endowment funds.

AIMCo's investment strategy is focused on achieving long-term returns, rather than short-term gains.

AIMCo's governance structure is overseen by a board of directors appointed by the Lieutenant Governor of Alberta.

The board consists of experienced individuals with expertise in areas such as investment management, finance, accounting, or law, or who have held senior executive positions.

Stephen Harper was named the new chair of AIMCo in November 2024, replacing previous chair J. Richard Bird, who served from 2018 until 2018.

Board members meet six times a year, with meetings scheduled a year in advance, as stated in AIMCo's 2010/2011 Annual report.

As of December 31, 2016, AIMCo had a staff of 425 employees, a significant increase from the 137 employees it had when it was created on January 1, 2008.

This growth in staff is a testament to the organization's expansion and increased demand for its services.

The staff of 425 employees is spread across various teams, including Investment Management and Risk, Investment Operations, and Corporate Services.

Here's a breakdown of the staff growth over the years:

This growth has enabled AIMCo to provide a wider range of services and support to its clients and stakeholders.

The governance and board of AIMCo are overseen by the Lieutenant Governor of Alberta, who appoints all members.

Board members must have demonstrable expertise in areas such as investment management, finance, accounting, or law, or have held senior executive positions.

In 2018, the board members included J. Richard Bird as chair, Phyllis Clark, Helen Kearns, Ken Kroner, Jim Prieur, Tom Woods, Sharon Sallows, and Robert Vivian Jr.

Jackie Sheppard, from Talisman Energy, was the newest member, replacing Harold Roozen, who retired in 2018 after serving since 2011.

The board meets six times a year, with meetings scheduled one year in advance, as stated in AIMCo's 2010/2011 Annual report.

In 2017, J. Richard Bird was designated as AIMCo CEO, effective October 21st, after having served in various executive positions at Enbridge.

Stephen Harper was named the new chair of AIMCo in November 2024.

Government Funds play a crucial role in supporting Albertan services.

The Government funds managed by AIMCo are used for Albertan services such as health care, education, infrastructure and social programs.

AIMCo invests in a variety of asset classes to generate returns for these funds.

Private equity, public equity, fixed income and private debt are all part of AIMCo's investment strategy.

OMERS, a Canadian pension fund, has a relaxed attitude towards fee transparency. They don't consider carried interest payments to be a huge concern in the ongoing fee debate.

Mark Redman, OMERS' head of private equity, believes that institutions shouldn't be surprised by carried interest payments.

AIMCo's investment strategy is built around pooled investment portfolios, which allow for client-controlled asset allocation among multiple public-sector pension plans and investment funds.

This approach enables AIMCo to achieve significant cost savings through internal investment management and access to alternative asset classes.

By operating as an arm's-length investment management entity, AIMCo is able to maintain independence and make decisions without undue influence, much like a private sector company.

The Alberta Heritage Savings Trust Fund is a great example of a long-term investment strategy. It was created in 1976 to save for the future and strengthen the economy.

The fund received 30 per cent of Alberta's non-renewable resource royalties initially, which helped it grow significantly. Over $33 billion has been made available to fund Albertans' priorities.

The fund's goal is to maximize long-term real returns at a prudent level of risk. This approach has been successful, with the fund being a member of the International Forum of Sovereign Wealth Funds.

The Heritage Fund's money has been used for various purposes, including capital infrastructure projects. This diversification of investments has helped the fund achieve its objectives.

Under the Alberta Heritage Savings Trust Fund Act, all income, less the amount required for inflation proofing, is used as revenue by the government. This approach helps to ensure the fund's sustainability over time.

AIMCo is a leader in pooled investment portfolios, allowing multiple public-sector pension plans and investment funds to achieve significant cost savings and access alternative asset classes.

These entities are arm's-length investment management entities with sufficient scale, independent boards, and internal investment management, remunerated at rates competitive with the private sector.

Canada is emerging as a world-wide leader in adapting the advantages of large funds to the public sector.

AIMCo's investments are categorized into three main areas: equities, fixed income, and illiquid securities, with equities making up 40% of its holdings.

Illiquid investments, which make up 26% of its investments, include holdings in timberland, real estate, private equity, and infrastructure.

AIMCo's fixed income portfolios comprise 34% of its holdings and are managed with the goals of liquidity, risk control, and capital preservation in mind.

Alberta Investment Management Corporation (AIMCo) manages and invests the assets of 28 Alberta pension plans, which is a significant responsibility.

AIMCo's assets under management have grown to over $120 billion, making it one of the largest institutional investors in Canada.

With such a large portfolio, AIMCo's performance is crucial to the financial well-being of its beneficiaries.

AIMCo's assets under management have seen significant growth since its inception in 2008, starting with $75.7 billion.

The corporation experienced a notable drop to $69.0 billion in 2009 due to a 10.1% loss, but has since shown consistent growth.

By February 2018, AIMCo had reached $100 billion in assets under management, and continued to expand.

Annual returns have varied between 2.3% and 14.7% between 2009 and 2021, with notable years including 2013 with a 12.5% return, 2019 with a 10.6% return, and 2021 with an impressive 14.7% return.

AIMCo's portfolio is diverse, composed of 43% equities, 22% fixed income, and 35% illiquid assets as of 2015.

By the end of 2019, AIMCo's total assets under management had reached $103.7 billion, with $88.2 billion in balanced funds and $15.5 billion in government and specialty funds.

The corporation's assets under management continued to grow, reaching $168.3 billion by the end of 2021, and $160.6 billion by the end of 2023.

A significant transaction is a database operation that changes the state of the database, such as inserting, updating, or deleting data.

These operations are often the most expensive in terms of system resources, such as CPU and memory usage.

Optimizing significant transactions can greatly improve the overall performance of a database.

In a database with high concurrency, significant transactions can lead to contention and deadlocks.

For example, in a banking system, a deposit transaction can be a significant transaction that updates the customer's account balance.

The performance of significant transactions can be improved by using indexing and partitioning techniques.

The Alberta Investment Management Corporation (AIMCo) has made significant commitments to various funds, with a total of 47 commitments listed.

The AIMCo fund commitments include investments in funds such as New Mountain Partners VII, although the specific manager and commitment date are not provided.

The commitment size for these investments is also not specified.

A notable commitment is made to a fund with an unspecified name, managed by an unnamed manager, and a commitment date that is not provided.

In 2015, AIMCo PE investments outperformed their benchmark, delivering a 10.1% return to investors.

This impressive performance is a testament to the fund's ability to make savvy investment decisions.

The fund's C$90 billion investment portfolio is a significant player in the market, and its success is a notable achievement.

AIMCo's investments are managed with the goal of generating strong returns for its investors.

In 2020, AIMCo reported a massive $2.1-billion loss due to a volatility-based investment strategy called VOLTS.

This significant loss was attributed to the 2020 stock market crash, which caused AIMCo's assets to plummet.

The loss represented approximately one-third of AIMCo's 2019 net investment income of $11.5-billion.

The fund's CEO, Kevin Uebelein, described the loss as a "blunder" and announced he would leave AIMCo by June 2021.

AIMCo's board of directors completed a review of the VOLTS Investment Strategy in June 2020, and they adopted ten recommendations to prevent similar losses in the future.

However, the review also found that the risk culture in the organization was "unsatisfactory", and senior leaders were not provided with enough information about the risks to investments in a timely manner.

The Alberta Investment Management Corporation (AIMCo) has faced its fair share of challenges and controversies over the years. One notable issue is the controversy surrounding the AIMCo's investment in the failed Enron energy company in 2001.

AIMCo's investment in Enron was a significant loss, resulting in a $1.4 billion write-down. This incident raised questions about the corporation's investment strategies and risk management practices.

The corporation has also been criticized for its handling of conflicts of interest, particularly in relation to its investment in the oil sands. AIMCo's investments in the oil sands have been criticized by environmental groups and Indigenous communities.

In 2019, AIMCo faced criticism for its investment in a pipeline project that was opposed by many Indigenous communities. The corporation has since stated that it will take a more active role in engaging with Indigenous communities on its investments.

AIMCo has also been accused of lacking transparency in its investment decisions, particularly in relation to its investments in private equity and real estate.

AIMCo manages funds for a diverse group of Alberta public sector clients, creating portfolios that reflect their chosen risk and return profiles.

The majority of AIMCo's assets under management come from Alberta public sector pension plans and provincial endowment funds. These clients are primarily invested in equities, bonds, and inflation-sensitive products.

AIMCo also manages assets for the Government of Alberta, which are generally invested in money market and short-term bonds.

AIMCo manages funds for a diverse group of Alberta public sector clients, creating portfolios that reflect their chosen risk and return profiles.

The majority of AIMCo's assets under management come from Alberta public sector pension plans and provincial endowment funds, which are collectively known as AIMCo's Balanced Funds.

These Balanced Funds are primarily invested in equities, bonds, and inflation-sensitive products.

AIMCo also manages assets for the Government of Alberta, which are generally invested in money market and short-term bonds.

AIMCo manages numerous pension funds on behalf of over 370,000 public sector employees as of 2020.

Some of the pension funds managed by AIMCo include the Local Authorities Pension Plan (LAPP), the Management Employees Pension Plan (MEPP), and the Public Service Pension Plan (PSPP).

AIMCo's clients include the Alberta Heritage Savings Trust Fund and Alberta government funds used to pay for public services such as infrastructure, social programs, and education.

Here are some of the key pension funds managed by AIMCo:

The Alberta Investment Management Corporation (AIMCo) has expanded its global footprint by opening an office in New York.

AIMCo's New York office brings the firm's total number of global offices to seven.

Having a physical presence in important financial markets like New York greatly enhances how AIMCo sources, evaluates, and executes on investments.

The office in Singapore was opened in the fall of 2023, and the organization's presence in these countries provides access to deeper pools of talent.

AIMCo is one of Canada's largest and most diversified institutional investment managers with more than C$164 billion of assets under management.

The New York office will also provide AIMCo with the presence and proximity required to develop and deepen critical relationships with its investment partners.

AIMCo's more than 200 investment professionals bring deep expertise in a range of sectors, geographies, and industries.