AIMCo in Focus: Overview, Strategy, and Case Studies

The Alberta Investment Management Corporation (AIMCo) was established on January 1, 2008, with a modest staff of 137. Over the years, it has experienced significant growth, expanding its workforce to 425 employees by January 1, 2017. AIMCo operates on a cost-recovery model, with expenses averaging around $0.46 per $100 of invested assets as of March 2014. Notably, since 2012, AIMCo has been internalizing the management of more assets to reduce operating costs by approximately $45 million annually.

AIMCo manages a diverse portfolio of funds, including the Alberta Heritage Savings Trust Fund and various Alberta government funds allocated for public services such as infrastructure, social programs, and education. As of 2020, AIMCo oversees numerous pension funds on behalf of over 370,000 public sector employees. These pension funds include the Local Authorities Pension Plan (LAPP), the Management Employees Pension Plan (MEPP), the Public Service Pension Plan (PSPP), and the Provincial Judges and Masters in Chambers Pension Plan. The corporation’s primary objective is to provide independent investment management services to the province.

AIMCo strategically allocates its investments across three main categories: equities, fixed income, and illiquid securities. Equities constitute 40% of AIMCo’s holdings and include public equity funds and co-venture deals. Illiquid investments, comprising 26% of its portfolio, encompass timberland, real estate, private equity, and infrastructure. Fixed income portfolios, making up 34% of AIMCo’s assets, are managed with a focus on liquidity, risk control, and capital preservation.

In addition to maximizing returns and minimizing risk, AIMCo prioritizes responsible investment practices. It exercises proxy voting rights on behalf of its clients, aiming to effect positive changes within asset corporations rather than immediately divesting holdings. AIMCo’s Responsible Investment policies, including proxy voting records, activities, and guiding documents, are available online. Furthermore, AIMCo is a signatory of initiatives such as the United Nations Principles for Responsible Investment (PRI), the Canadian Coalition of Good Governance (CCGG), and the Responsible Investment Association.

AIMCo primarily focuses on managing public and private equity funds, private debt, and fixed income securities.

AIMCo employs strategic asset allocation, risk control measures, and responsible investment practices to manage risk effectively.

AIMCo serves a wide range of clients, including public sector pension funds, government funds, and endowments.