Alberta Investment Management
Encyclopedia
Alberta Investment Management Corporation (AIMCo) is one of Canada's largest institutional investment fund managers. It is headquartered in Edmonton, Alberta.
Established as a crown corporation on January 1st, 2008, it manages C$71 billion on behalf of the province of Alberta. A total of 27 funds are managed, including the province's sovereign wealth fund
, the Alberta
Heritage Savings Trust Fund as well as several public pensions, and other endowment
funds.
Legislation creating AIMCo was passed by the Alberta legislature on March 13, 2007. , and AIMCo became a crown corporation in January 2008. AIMCo is governed by an experienced Board of Directors. AIMCo controls C
$69 billion in assets under management
as of March 31st, 2009.
royalties.
During the early 1980s, the fund made loans to other provincial governments in Canada. Later the fund's money was used for capital infrastructure projects. After 1987 resource royalty revenue was no longer added to the fund.
During the mid-1990s, public opinion turned against allowing governments to dip into the Heritage fund to fund special projects, and instead all income earned each year began to be withdrawn from the fund and added to general revenues.
As of 2009, the fund is invested in stocks, bonds, real estate and other ventures, with the aim of generating revenue for the province.
In order to be appointed to the Board, a Director must have demonstrated experience in investment management, finance, law or served as an executive with a large, publicly traded company. All Directors are independent of management. Directors are required by statute to act honestly and in good faith with a view to the best interests of the Corporation and are required to exercise the care, diligence and skill that a reasonable and prudent person would exercise in comparable circumstances. The Board of Directors meets six times every year with meetings scheduled one year in advance. Additional meetings are arranged as required.
Established as a crown corporation on January 1st, 2008, it manages C$71 billion on behalf of the province of Alberta. A total of 27 funds are managed, including the province's sovereign wealth fund
Sovereign wealth fund
A sovereign wealth fund is a state-owned investment fund composed of financial assets such as stocks, bonds, property, precious metals or other financial instruments. Sovereign wealth funds invest globally. Some of them have grabbed attention making bad investments in several Wall Street financial...
, the Alberta
Alberta
Alberta is a province of Canada. It had an estimated population of 3.7 million in 2010 making it the most populous of Canada's three prairie provinces...
Heritage Savings Trust Fund as well as several public pensions, and other endowment
Financial endowment
A financial endowment is a transfer of money or property donated to an institution. The total value of an institution's investments is often referred to as the institution's endowment and is typically organized as a public charity, private foundation, or trust....
funds.
Legislation creating AIMCo was passed by the Alberta legislature on March 13, 2007. , and AIMCo became a crown corporation in January 2008. AIMCo is governed by an experienced Board of Directors. AIMCo controls C
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
$69 billion in assets under management
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
as of March 31st, 2009.
Heritage Fund
The Alberta Heritage Savings Trust Fund was created in 1976 by the Alberta Heritage Savings Trust Fund Act. Initially, the fund received 30 per cent of Alberta's non-renewable resourceNon-renewable resource
A non-renewable resource is a natural resource which cannot be produced, grown, generated, or used on a scale which can sustain its consumption rate, once depleted there is no more available for future needs. Also considered non-renewable are resources that are consumed much faster than nature...
royalties.
During the early 1980s, the fund made loans to other provincial governments in Canada. Later the fund's money was used for capital infrastructure projects. After 1987 resource royalty revenue was no longer added to the fund.
During the mid-1990s, public opinion turned against allowing governments to dip into the Heritage fund to fund special projects, and instead all income earned each year began to be withdrawn from the fund and added to general revenues.
As of 2009, the fund is invested in stocks, bonds, real estate and other ventures, with the aim of generating revenue for the province.
Employees
When AIMCo was created on January 1, 2008, it had a staff of 137. By March 31, 2009 that had grown to 170. AIMCo's 2008-09 Annual Report says the corporation expects the number of fulltime employees to reach approximately 250 by 2010. The two-year increases reflect the need to create a senior management team, enhance operational and risk management support and internalize the management of assets previously managed externally. By enhancing its expertise to manage more funds internally, AIMCo will significantly reduce overall management costs while improving investment performance.Operating Costs
AIMCo operates on a cost-recovery basis. Total expenses for the year ended March 31, 2009 were $215 million, equating to 31 cents per $100 of invested assets. AIMCo is increasing internal investments in people and technology to achieve greater cost-efficiencies over the next three years. It expects to internalize the management of an additional $8 billion of assets ($5 billion in equities and $3 billion in inflation sensitive). The net result is a projected savings of $45 million in operating costs every year, starting in 2012. These cost savings may then be passed along to the Investment Partners on whose behalf funds are managed.Governance
AIMCo was established as a crown corporation by the Province of Alberta to provide independent, arms length investment management services to designated pension funds and provincial public sector bodies and funds, with strong accountability for its investment decisions. The Board of Directors is responsible for overseeing management of the business and affairs of AIMCo. As part of this mandate, the Board sets the strategic direction of the Corporation and oversees the development and implementation of policies and procedures that govern the conduct of AIMCo's business.In order to be appointed to the Board, a Director must have demonstrated experience in investment management, finance, law or served as an executive with a large, publicly traded company. All Directors are independent of management. Directors are required by statute to act honestly and in good faith with a view to the best interests of the Corporation and are required to exercise the care, diligence and skill that a reasonable and prudent person would exercise in comparable circumstances. The Board of Directors meets six times every year with meetings scheduled one year in advance. Additional meetings are arranged as required.