AIMCo earned a total fund net return of 9.9% in 2014.
The net of fees return was 11.2% for pension and endowment Clients, and 4.4% for government and specialty fund Clients.
Annually, the board and management agree on active return targets consistent with top quartile return on active risk. Since 2009, AIMCo has earned its Clients value add of $2.5 billion net of fees. In 2014, AIMCo earned a net of fees return of 9.9%, underperforming its active return target of 10.5% by 0.6% or $401 million net of fees.
Public markets investments performed strong with public equities contributing $369 million and fixed income adding $167 million to value add. Private market investments also demonstrated strong returns in certain asset classes with real estate generating $145 million.
The primary driver of underperformance in 2014 may be attributed to losses incurred by AIMCo’s global tactical asset allocation strategy and the revaluation of certain prior year investments. In addition, certain illiquid asset classes lagged behind the very strong performance of their listed benchmarks, a not unexpected outcome given the diversification rationale for investment in these asset classes.
Calendar Year (net of fees)
|Rate of Return||
|Return above Benchmark||
* 2014 Return relative to Benchmark includes a one-time adjustment of $437 million due to the revaluation of certain of AIMCo investments made in prior years.