FAQ
1. WHO IS ALBERTA INVESTMENT MANAGEMENT CORPORATION?
Alberta Investment Management Corporation (AIMCo) is one of Canada’s largest and most diversified institutional investment fund managers. The Corporation manages approximately $70 billion for Alberta pensions, endowments and government funds. AIMCo is governed by an experienced board of directors. AIMCo’s goal is to inspire the confidence of Albertans by achieving superior risk-adjusted investment returns. The Corporation was established as a Crown corporation on January 1, 2008. The sole shareholder is the Province of Alberta. Our assets were previously managed by a division of Alberta Finance and Enterprise.
2. HOW IS AIMCo DIFFERENT FROM OTHER INVESTMENT MANAGEMENT COMPANIES?
AIMCo is one of the five largest institutional investment fund managers in Canada. Many other Canadian investment fund managers have a single purpose objective, which is to invest on behalf of a single client Alternatively, AIMCo manages funds for a diverse group of Alberta public sector clients. These can be divided into three separate groups: Public Sector Pension Funds, Endowment Funds and Government Mandated Funds.
Public Sector Pension Funds: Similar to other investment fund managers, AIMCo has a significant portfolio of Pension Funds. This portfolio includes, but is not limited to, Alberta public sector employees, university professors and Court of Queen’s Bench judges.
Endowment Funds: AIMCo is the largest endowment fund manager in Canada. The endowment funds include the Alberta Heritage Savings Trust Fund and a number of additional large endowments relating to science and technology, medical research and others.
Government Mandated Funds: Essentially, these are fixed-income funds that are the Government of Alberta’s bank accounts, which, just like a personal bank account, are focused on capital preservation.
3. WHAT IS THE RELATIONSHIP BETWEEN AIMCo AND THE GOVERNMENT OF ALBERTA?
AIMCo is run on commercial principles by a strong Board of Directors, whose members are appointed by the Alberta Minister of Finance and Enterprise. AIMCo is a corporation with one shareholder – the Government of Alberta. AIMCo was formerly known as Alberta Investment Management, a division within the Alberta Ministry of Finance. As of January 1, 2008, AIMCo became a Crown corporation by an Act of the Alberta Legislature.
4. DOES AIMCo USE TAXPAYERS’ DOLLARS TO MAKE INVESTMENTS?
A significant portion of AIMCo’s investment funds are from provincial taxes, royalties and government fees. AIMCo also invests on behalf of public sector pensions, funded to a large degree by public sector employee contributions.
5. WHERE DO THE INVESTMENT FUNDS COME FROM?
AIMCo invests on behalf of all Albertans through Public Sector Pension Funds, Endowment Funds and Government Mandated Funds. AIMCo is committed to attaining the highest and best total fund financial outcomes for their clients.
Approximately one-third of AIMCo’s investments are on behalf of Alberta Public Sector Pension Plans. Each of the pension plans have their own independent Board whose purpose is to provide due diligence, oversight, as well as set contribution rates and general investment policy guidelines. AIMCo provides expert fund management advice to the plans’ boards and investment committees and is able to pool funds to generate better returns through economies of scale.
Alberta has established significant endowment funds for future generations, including the Alberta Heritage Trust Fund. AIMCo, as the largest endowment fund manager in Canada, provides fund management services to these funds. In addition, AIMCo manages Alberta Provincial Government funds.
6. WHAT KINDS OF FUNDS/ORGANIZATIONS DOES AIMCo INVEST IN?
AIMCo invests in a wide range of securities, such as bonds, treasury bills, public and private equities and real estate.
The goal is to inspire the confidence of Albertans by investing their money wisely and prudently in securities that provide the best possible returns while minimizing risk. AIMCo invests globally but most of its investments are held in North America and Western Europe. The Corporation actively seeks new opportunities that will provide promising investment returns within clearly established levels of risk.
7. HOW DOES CORPORATE GOVERNANCE PLAY A ROLE IN AIMCo’S INVESTMENT DECISION MAKING PROCESS?
AIMCo’s governance structure ensures that it will operate as a Crown corporation with strong accountability for its investment decisions. An experienced Board of Directors, not government, approves investment policies and sets the overall strategic direction of the corporation. The Board of Directors is appointed by the Alberta government and is responsible for hiring the Chief Executive Officer (CEO), defining the CEO’s powers, duties and compensation.
The CEO is responsible for hiring a senior management team and developing a corporate business plan, which sets out overall investment objectives and strategies. This plan is approved annually by the Board. The senior management team approves individual investment decisions guided by the policies established by the Board. AIMCo has rigorous accounting and reporting standards and is subject to annual audits by the Office of the Auditor General of Alberta.
AIMCo’s Board of Directors appoints an audit committee from its members. The Audit Committee reviews financial statements and the corporation’s internal audit and financial control.
All AIMCo employees must comply with strict disclosure standards and adhere to a Code of Business Conduct. AIMCo provides information on its website with details about its various investments and publishes an Annual Report with financial statements.
8. DOES AIMCo HAVE GROWTH/EXPANSION PLANS FOR THE FUTURE? IF SO, WHAT ARE THEY?
Yes, AIMCo has significant expansion plans. We believe that improved investment returns may be achieved not only by making smart investments, but also by reducing administrative costs. About 74 per cent of our administrative costs are consumed by external management fees. Yet these fees are for the management of only 17 per cent of AIMCo’s total assets. AIMCo firmly believes that bringing the management of these funds in-house will result in better returns and significantly reduce overall management costs.
9. HOW CAN ONE LEARN MORE ABOUT AIMCo?
For all media inquiries, please contact:
Shauna MacDonald
Brookline Public Relations Inc.
T: 403-538-5645
C: 403-585-4570
E:
smacdonald@brooklinepr.com
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