Chair & CEO Messages

Building an organization with the strength to withstand the uncertain demands of the future requires patience and strategic thinking. When I reflect upon the past year at the Alberta Investment Management Corporation, I am heartened to see the foundation of the organization strengthened.  The introduction of a 5-year Corporate Plan, new Investment and People Strategies, and the kickoff of a Business Transformation initiative were critical milestones. These were heavy lifts — completed collaboratively and centred firmly around the needs of AIMCo’s clients and the Albertans they serve.  

After the challenging conditions of 2022, there was some relief for investors in 2023 with returns once again in positive territory, despite volatile geopolitical and inflationary pressures. Importantly, AIMCo’s long-term investment returns remain above investment benchmarks, bolstered by strong risk management practices.

After being appointed Vice Chair in December, I assumed the responsibilities of Board Chair when Mark Wiseman stepped down at the end of 2023. The Board and I extend our gratitude to Mr. Wiseman for his exceptional leadership and commitment to evolving AIMCo during his incredibly impactful three-year term. This April, we said farewell to board members Sharon Sallows and Tom Woods, who served for six and nine years, respectively. The pair made immeasurable contributions to AIMCo, for which the Board and I thank them. With departures come new arrivals and we are pleased to welcome our newest members Jason Montemurro and Joel Hunter.

Much of the work done by a Board of Directors is low profile, as it should be. However, in November, the Governance Professionals of Canada delivered an esteemed recognition, granting AIMCo an Excellence in Governance Award. The recognition acknowledged the collaborative work of the Board, Management and AIMCo colleagues on a Governance Framework Review that resulted in revisions to our Board Mandate and the Terms of Reference for each Board Committee. I am incredibly proud to see such recognition for the collective efforts of so many.    

Looking ahead, the Board is keen to monitor the implementation of the strategic efforts rooted in 2023. The Board’s duty to the people of Alberta who rely on the work of AIMCo is paramount in the execution of our responsibilities.  

Ken Kroner
Vice Chair, Board of Directors

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The last year saw AIMCo spread its wings globally, opening offices in Singapore and New York while expanding our London, Toronto and Calgary offices. We remain an Edmonton-headquartered enterprise, close to our clients. Our expansion supports improved talent acquisition, a revamped Investment Strategy targeting broader geographic diversification, and strengthening of our strategic partnerships. The ‘A’ in AIMCo has never held greater significance for us.

It was a critical time to take a hard look at our asset class strategies and align on where and how we will focus our energy in our quest to deliver persistent, superior risk-adjusted net investment returns for our clients. Public markets bounced back from the lows of 2022 despite what felt like non-stop geopolitical crises. Private markets were muted by high inflation and interest rates.

Against that backdrop, delivering an 8.0% Balanced Fund investment return, or $8.9 billion, was a notable accomplishment. Longer term, which is where our team focuses, the numbers remain strong. The 10-year Balanced Fund return is 7.3%, outperforming the 6.9% investment benchmark. The Investment Performance section of this report offers a detailed breakdown of our asset class returns, including commentary from the teams managing the various portfolios on behalf of our clients.

After several key additions in 2022, our leadership team was further strengthened by the arrivals of Kevin Bong, Chief Investment Strategist and Head of Singapore and Shelley Nixon, Chief Legal Officer. The broader AIMCo team grew by 17% and we are pleased to welcome the incredible professionals who have chosen to make our purpose theirs — to help our clients secure a better financial future for the Albertans they serve.

It was an incredible year for connections as we returned to some of the face-to-face activities that had been put on hold for some time. Inviting clients on a tour of Cando Rail, an asset in their Infrastructure portfolios with an Alberta terminal, was a highlight, as was the Investment Symposium, which brought the world’s best partners and insights to Edmonton in the fall. The entire AIMCo team was reunited in the Alberta capital in April for a special event promoting learning and client centricity that felt rather like an inflection point for the company.

An additional point of pride was our first recognition as one of Canada’s Top Employers for Young People, signalling a new energy. Add that to our tenth appearance on the list of Alberta’s Top Employers and you will get some idea of the sustaining culture at AIMCo.  

While the title of this report — Building Tomorrow, Today — perfectly captures the long-term view we take on investments, it is also highly relevant to the Business Transformation initiative now underway. As we continue to make progress in building trust with our clients, our efforts now expand from building relationships to improving our capabilities through operational simplicity and streamlined processes. We continue to work hard to earn our clients’ trust every day.

This Business Transformation is an ambitious undertaking that will pay off for our clients and position us as a leading investor in Canada, which is what we owe our clients, and the Albertans they serve.

Evan Siddall
CEO

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