This article may contain an excessive amount of intricate detail that may interest only a particular audience.February 2017) (Learn how and when to remove this template message)(
|J. Richard Bird (Chair)|
Kevin Uebelein (Chief Executive Officer)
Dale MacMaster (Chief Investment Officer)
Robin Heard (Chief Financial Officer)
|C$10.8 billion (2017)|
|AUM||C$108.2 billion (2018)|
Number of employees
|Divisions||Money Market & Fixed Income|
Global Tactical Asset Allocation
Infrastructure & Renewable Resources
Private Debt & Loan
Alberta Investment Management Corporation (AIMCo) is one of Canada's largest and most diversified institutional investment fund managers, with an investment portfolio of approximately $108.2 billion focusing on private equity, public equity, fixed income and private debt. Headquartered in Edmonton, Alberta, AIMCo manages the assets of a diverse set of public sector pensions, endowments, government funds and is one of the world's largest institutional investors.
Legislation creating AIMCo was passed by the Alberta legislature on March 20, 2007, and AIMCo became a crown corporation on January 1, 2008. Prior to becoming a Crown corporation in 2008, the corporation's assets were managed by a division of Alberta Finance.
"At March 31, 2009 assets under its administration totaled approximately $69.0 billion (2008 - $75.7 billion) at market value." In its 2009 Annual Report AIMCo published its total fund return was -10.1% for the year ending March 31, 2009.:14
In 2015 AIMCo earned a 9.1% total fund net return on behalf of its clients. By 2015 AIMCo was managing four endowment funds, seven pension plans, nine government funds, eight specialty funds, and style other balanced funds.
AIMCo is one of several "pooled investment portfolios" in Canada that allow for "client-controlled asset allocation for multiple public-sector pension plans and investment funds. Through pooled asset management, these entities achieve sufficient scale to produce significant cost savings through internal investment management and access to alternative asset classes." Through funds like these "Canada is emerging as a world-wide leader in successfully adapting the advantages of large funds to the public sector." These are "arm's-length investment management entities with sufficient scale, independent boards and internal investment management, remunerated at rates competitive with the private sector."
AIMCo's focuses its investments across three broad categories, Equities, Illiquid Investments, and Fixed Income all employing varying strategies.
Equity holdings, which contain both public and private equity, total to 43% (2015) of AUM. The public equity portfolio maintains exposure to a diversifying set of common style factors, as well as stock selection and other idiosyncratic risk. By investing with both private funds and co-venture deals, AIMCo private equity focuses on business that generate stable free cash flow and are operated by strong management teams.
Illiquid Investments, which constitute 22% of AUM, include long-term holdings in Real Estate, Infrastructure and Timberland. The long term Real Estate assets are the core strategy direct investments in office, retail, industrial and multi-unit residential properties located in major Canadian Centres. AIMCo's Infrastructure investments match long duration real return asset characteristics with inflation indexed-pension liabilities. The Infrastructure and Timberland assets are held to provide inflation hedging and a long-term duration match with client obligations.
The Fixed Income portfolios are managed with the objective of capital preservation, liquidity, and risk-controlled return relative to benchmark. These asset classes make up 35% of AIMCo's AUM.
|Asset Class||AUM (CDN) (billion)||% of Total Fund|
AIMCo's approach to Responsible Investment is governed by its fiduciary duty to clients and a long-term investment horizon. AIMCo seeks to maximize risk-adjusted returns by integrating environmental, social and governance (ESG)) factors into investment analysis across all asset classes. AIMCo's Responsible Investment processes include:
When AIMCo was created on January 1, 2008, it had a staff of 137. By December 31, 2016 the number of employees has grown to 425, across the organization's Investment Management and Risk teams, Investment Operations, and Corporate Services.
AIMCo operates on a cost-recovery basis. Total expenses for the year ended March 31, 2014 were $445 million, equating to 46 cents per $100 of invested assets. AIMCo is increasing internal investments in people and technology to achieve greater cost-efficiencies over the next three years. It expects to internalize the management of an additional $8 billion of assets ($5 billion in equities and $3 billion in inflation sensitive). The net result is a projected savings of $45 million in operating costs every year, starting in 2012. These cost savings may then be passed along to the Clients on whose behalf funds are managed.
AIMCo was established as a crown corporation by the Province of Alberta to provide independent, arms length investment management services to designated pension funds and provincial public sector bodies and funds, with strong accountability for its investment decisions.
According to AIMCo's website,
The Board of Directors is responsible for overseeing management of the business and affairs of AIMCo. As part of this mandate, the Board sets the strategic direction of the Corporation and oversees the development and implementation of policies and procedures that govern the conduct of AIMCo's business.-- AIMCo website
According to the Alberta Investment Management Corporation Regulation
Individuals appointed to the board must have proven and demonstrable experience and expertise in investment management, finance, accounting or law or experience as an executive or a director in a senior publicly traded issuer.-- Alberta Investment Management Corporation Regulation, Section 5.
According to AIMCo's 2010/2011 Annual report,:39
Directors are required by statute to act honestly and in good faith with a view to the best interests of the Corporation and are required to exercise the care, diligence and skill that a reasonable and prudent person would exercise in comparable circumstances. The Board of Directors meets six times every year with meetings scheduled one year in advance. Additional meetings are arranged as required.-- AIMCo Annual Report
AIMCo manages funds for a diverse group of Alberta public sector clients. It creates portfolios that reflect the clients' chosen risk and return profiles. The majority of AIMCo's assets under management come from Alberta public sector pension plans and provincial endowment funds. Collectively known as AIMCo's Balanced Funds, these clients are primarily invested in equities, bonds and inflation sensitive products. Other assets, managed for the Government of Alberta, are generally invested in money market and short-term bonds.
The Alberta Heritage Savings Trust Fund was created in 1976 by the Alberta Heritage Savings Trust Fund Act with three objectives: "to save for the future, to strengthen or diversify the economy, and to improve the quality of life of Albertans.
Initially, the fund received 30 per cent of Alberta's non-renewable resource royalties. During the early 1980s, the fund made loans to other provincial governments in Canada. Later the fund's money was used for capital infrastructure projects.
To date, over $33 billion has been made available to fund Albertans' priorities, such as health care, education, infrastructure and social programs. The Fund is managed with the goal of maximizing long-term real returns at a prudent level of risk. Under the Alberta Heritage Savings Trust Fund Act, all income, less the amount required for inflation proofing, is used as revenue by the government. The Heritage Fund is a member of the International Forum of Sovereign Wealth Funds and is therefore signed up to the Santiago Principles on best practice in managing sovereign wealth funds. AIMCo works closely with Alberta Treasury Board and Finance to set long-term objectives for the Heritage Fund and implements these objectives through investments in a globally diversified mix of bonds, public and private equities, hedge funds, real estate and other real asset investments, such as infrastructure and timberland.
AIMCo manages the investment assets on behalf of the following pension plans on behalf of its sole shareholder, the Alberta Minister of Finance:
The Government funds managed by AIMCo are used for Albertan services such as health care, education, infrastructure and social programs. As a result, AIMCo invests in private equity, public equity, fixed income and private debt.