The Alberta Investment Management Corp. is reporting a total fund return of 2.5 per cent net of all fees for 2020, approximately 5.4 per cent below that of its benchmark.
The total represents approximately $3 billion in net investment income, with assets under management reaching $118.6 billion, according to a press release, which noted the annualized total fund returns over four and ten years are 6.1 per cent and 7.7 per cent, respectively.
“[The] AIMCo is a long-term investor, in alignment with the objectives of our clients and accordingly, our performance is gauged by investment returns measured in decades, not years,” said Kevin Uebelein, chief executive officer, of the AIMCo. “Nevertheless, a year like 2020, where so many asset classes declined in near unison, erasing the typical benefits of well-diversified portfolios, is extremely humbling. [The] AIMCo has demonstrated complete transparency regarding investment performance in 2020. We undertook a comprehensive review of risk management and believe we are well-positioned going forward.”
The AIMCo said its public-market investments continued to gain strength following the challenges of the first quarter in 2020, while fixed income also continued on the path of recovery. However, while private-equity investments outperformed overall, infrastructure fared less well, the AIMCo said, noting that a re-positioning of its real estate portfolio toward industrial and logistics “is expected to drive strong performance in the future.”
Read: AIMCo appointing Evan Siddall as CEO
Evan Siddall, the former head of the Canada Mortgage and Housing Corp. is set to become the AIMCO’s next chief executive officer as of July 1. He’ll succeed Uebelein, who has been CEO of the AIMCo since Jan. 1, 2015. Uebelein remains the CEO until June 30 and will then support transition initiatives, according to a press release. Last November, Uebelein and the AIMCo board began the process of a leadership transfer after the CEO announced he would step down early.