In a bid to restore public confidence in the Alberta Investment Management Corporation (AIMCo), Finance Minister Nate Horner has announced significant changes following years of the agency underperforming relative to its benchmark returns. AIMCo’s growing operating costs, higher management fees, and an expanding staff size have not been matched by increased returns, prompting the government to take action.From 2019 to 2023, AIMCo’s costs have surged: third-party management fees increased by 96%, employee numbers grew by 29%, and salary expenses rose by 71%. Despite these increases, the agency managed a smaller share of its funds internally, raising concerns about inefficiency and value for Albertans.To realign AIMCo’s priorities, all board appointments have been rescinded, and a new board chair is expected to be appointed within 30 days. Until a permanent chair is named, Horner has stepped in as the agency’s sole director and chair, effective immediately, overseeing a reorganization aimed at ensuring low operating costs and maximized returns for Albertans.“AIMCo’s work has direct consequences for Albertans. While they have achieved returns for their clients, we are acting to bring a renewed focus on the best possible returns and low operating costs,” said Horner.Despite the structural changes, AIMCo’s clients are assured their portfolios will not be affected during the transition. Horner emphasized he will not participate in investment decisions nor receive compensation for his interim roles. AIMCo’s average annual return over the past four years has been 7.62%, which fell short of its mandated benchmarks.AIMCo manages the investments of several provincial government funds, including the Heritage Savings Trust Fund. That fund itself has $23.4 billion in it.It also invests money in the pension funds of Alberta public sector workers.
