Alberta government facing backlash after changing terms of public-sector pensions

The Alberta Investment Management Corp. secured a return of 14.7 per cent in 2021, according to its annual report.

During the year, the AIMCo’s assets under management reached $168.3 billion, up from $146.6 billion in 2020. Following the record-breaking performance, its annualized total fund return rose to 7.4 per cent on a four-year basis and 8.6 per cent on a 10-year basis.

The performance was led by the AIMCo’s private equity portfolio, which saw returns of 65.9 per cent during the year, growing by $5.4 billion to $8.2 billion. Its public equity portfolio also saw significant growth, generating returns of 23.4 per cent and growing by $12.2 billon to $51.9 billion. Only the AIMCo’s fixed income portfolio declined in value during the year, shrinking by 1.1 per cent.

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Beyond its investment performance, the AIMCo was also able to absorb the assets from a number of provincial funds, including the Alberta Health Services and the Workers’ Compensation Board. The Alberta Teachers’ Retirement Fund, which is the last independently managed provincial public sector pension plan, also reached an agreement to see its assets managed by the AIMCo starting in September.

The AIMCo credits its internal asset management expertise for the strong returns. In a press release, Evan Siddall, chief executive officer, touted the centralization of Alberta’s government investing needs as being in the best interests of beneficiaries. “By providing superior, long-run, risk-adjusted net returns, we are proud to support each of our clients in achieving their long-term goals.”

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