Alberta Investment Management Corp. (AIMCo) reported on Thursday that the aggregate return achieved on behalf of its 14 Alberta pension and endowment balanced fund clients was 2.5 per cent net of all costs.
The corporation said it actively selects the assets it invests in within each class, and measures its performance relative to a standard passive benchmark for each class. In 2018, AIMCo achieved a net return premium of 1.1 per cent for its balanced fund clients, over and above the composite benchmark.
“With the gains achieved in 2018, AIMCo has earned its clients investment income in excess of $60 billion, net of all costs, since being established in 2008, of which more than $6.3 billion represents value add investment income above the benchmark returns for the period,” said the corporation in a news release.
“We continue to see our long-term investment strategies paying off for Albertans. The results are a testament to the expertise and dedication of our talented team,” said Kevin Uebelein, chief executive officer, in a statement. “With the continued trust of our clients, we look forward to seeking out new investment opportunities that will build prosperity in the years to come.”
Chief investment officer Dale MacMaster said market volatility made 2018 a challenging year.
“Delivering a positive return for our clients was a significant achievement,” he said. “Our results show the necessity of a diversified portfolio. Returns on some of our real estate and infrastructure investments helped offset results from asset classes that did not perform as well.”
AIMCo is one of Canada’s largest and most diversified institutional investment managers with $108.2 billion of assets under management as of Dec. 31, 2018. The organization’s mandate is to maximize risk adjusted net investment returns in a manner responsive to the needs and expectations of its 31 Alberta-based pension, endowment, government and specialty fund clients.
“Balanced fund pension and endowment clients account for $89.5 billion of assets under management, and are most representative of AIMCo’s overall performance, as they utilize the full range of the organization’s asset and style capabilities. Government and specialty fund clients account for $18.7 billion of assets under management, and largely rely on AIMCo for its expertise in managing fixed income assets and for liquidity management,” it said.
AIMCo was established as a Crown corporation on Jan. 1, 2008.
– Mario Toneguzzi