Public Equities And Mortgages

AIMCO’s Public Markets Team applied a range of strategies to earn strong returns in 2014.

AIMCo’s Public Equities team is responsible for managing over $32 billion through a set of diversified portfolios invested across 45 global equity markets.

In 2014 the team outperformed their benchmarks by emphasizing high quality and value oriented stock selection strategies, while carefully managing country, sector and currency risks.

The team manages a wide range of strategies including index, quantitative, fundamental stock selection and hedge funds. This approach is designed to provide a diverse set of exposures and has led to strong risk adjusted returns for AIMCo’s Clients.

2014 was another successful year with $369 million in value added.

Peter Pontikes
SVP Public Equities

Interview with Peter Pontikes

How do you go about constructing equity portfolios?

We start with the idea that there are many sources of risk in the equity markets, some will pay us positively and others will hurt us. Our primary job is to identify the risks we want to take on in the portfolio and design strategies to target those exposures while minimizing exposure to undesirable risks.

What do you consider desirable risk exposures?

Our portfolios tend to tilt towards value, quality and low volatility. Our research shows that these characteristics tend to outperform over time.

Describe your team.

The Public Equities team consists of 25 individuals with backgrounds in Finance, Economics, Engineering and Computing Science. The depth and breadth of experience in the team allows us to research, manage and trade a diverse set of strategies internally. Today, more than 55% of the portfolio is internally managed.

Which countries or regions do you invest in?

Our portfolios are invested across nearly all developed and emerging markets – 45 countries in total. We tend to be quite diversified in this regard and are quite modest in terms of taking significant country bets versus our benchmarks. However, during most of 2014 we tended to be overweight the United States and Japan and underweight Europe.

What is AIMCo’s view on the equity markets?

During 2014 we maintained an overweight to equities versus fixed income for our Clients. We believed that equity valuations were reasonable and prospects for earnings growth were positive for most markets.

What is your view on Energy stocks?

Energy stocks experienced a big sell off in 2014. Situations like this often create opportunities and we have been keeping a close watch on the sector. We believe there will be winners and losers, and we carefully accumulated positions in companies with strong balance sheets, high netbacks and high quality managements.

Quantitative Investments Team
(left to right)

  • Jason Huang, Associate Portfolio Manager
  • John Chen, Associate Portfolio Manager
  • David Triska, Associate Portfolio Manager
  • Li Xiao, Senior Analyst
  • Darren Wettig, Associate Portfolio Manager
  • Tamara Owchar, Director
  • Atam Kapoor, Associate Portfolio Manager
  • Pei Li, Analyst (Missing)

External Funds Team
(left to right)

  • Christopher Tsang, Junior Research Analyst
  • James Sawatzky, Analyst
  • Alejandro Hernandez, Associate Portfolio Manager
  • Aly Rahemtulla, Analyst
  • Eric Pedde, Director

Conviction Equities Team
(left to right)

  • Keith Walton, Portfolio Manager
  • Kirby O'Connor, Portfolio Manager
  • David Tiley, Director
  • James Alder, Portfolio Manager

Indexes Team
(left to right)

  • Nick Wildman, Analyst
  • Dietmar Sollbach, Director
  • Jenny Li, Senior Analyst
  • Srdan Komlenovic, Analyst

Trading Team
(left to right)

  • Christian Yacoub, Senior Trading Analyst
  • Justin Lord, Equity Trader/Portfolio Manager
  • Brian Ng, Senior Analyst Public Equities Strategies
  • Richard Wan, Director

Mortgages Profile

Mortgage Portfolio Purchase

By seizing upon a rare opportunity to acquire a conservative, seasoned loan portfolio from a prominent Canadian pension fund AIMCo’s Mortgage team was able to satisfy our Clients’ target allocation to this asset class.The team integrated the $520 million, 50 loan portfolio of high quality and geographically dispersed Canadian mortgages into AIMCo’s existing mortgage portfolio.

Expertise

Qualified parties were invited to submit offers to purchase the entire OMERS mortgage portfolio.  AIMCo’s ability to transact quickly was rewarded with an exclusive opportunity to negotiate with Oxford, culminating in the execution of a Mortgage Loan Purchase Agreement.  The agreement was subject to loan due diligence and competition bureau consent and the team successfully closed the transaction in August 2014.

Investment Characteristics

  • 50 first mortgages: 29 conventional and 21 CMHC insured
  • Geographically dispersed across Canada: 67% Ontario, 17% Alberta, 9% Quebec, 4% British Columbia, 2% Nova Scotia
  • Portfolio was comprised of high quality real estate of a variety of property types: 34% Office, 28% Multifamily, 16% Industrial, 15% Retail, 7% Hotel

Deal Team

  • Andrew Huntley

    Senior Vice President,
    Mortgage Investments

  • David Grieve

    Director Mortgage Investments

  • Scott Russill

    Portfolio Manager Mortgage Investments

  • Sachiko Goto

    Senior Analyst Mortgage Investments

  • Jon Reay

    Senior Legal Counsel

  • Christina Luison

    Legal Counsel

Porterbrook

Read More