AIMCo posts 12.6% return in 2024 while public equities lead and real estate declines 2.0%
Alberta Investment Management Corporation (AIMCo) reported a Balanced Fund net investment return of 12.6 percent, amounting to $15.1bn, for the year ended December 31, 2024.
This return was 0.8 percentage point below its benchmark of 13.4 percent.
Over a four-year period, the Balanced Fund achieved an annualized return of 7.8 percent, or $35.0bn, surpassing the benchmark by 1.7 percentage points.
The ten-year return stood at 7.4 percent, or $70.4bn, exceeding the benchmark by 0.4 percentage point.
The Total Fund return for 2024 was 12.3 percent, 1.5 percentage points below its 13.8 percent benchmark. This figure represents the aggregated performance of all client accounts.
AIMCo has appointed Ray Gilmour, the government’s deputy minister and secretary to the cabinet, as interim CEO, replacing Evan Siddall.
Gilmour said the team delivered strong results in 2024, with total assets under management reaching $179.6bn compared to $160.6bn at the end of 2023.
“This progress is a testament to the team's ability to evaluate and seize opportunities, while skillfully navigating the volatile global investment landscape,” he said.
Public Equities led asset class performance with a one-year return of 24.7 percent.
The Money Market & Fixed Income portfolio returned 4.6 percent, with Mortgages and Private Debt & Loan components achieving 6.4 percent and 8.7 percent, respectively.
Justin Lord, senior executive managing director and global head of Public Markets at AIMCo, said 2024 was another exceptional year for returns from public markets.
“Particularly in global equities, which was responsible for the majority of this performance,” he said.
He added that fixed income returns were positive despite the volatile rate environment and that high-quality credit exposure contributed to client portfolios.
Infrastructure and Private Equity posted returns of 12.0 percent and 11.8 percent, respectively. The Real Estate portfolio declined by 2.0 percent in 2024.
Peter Teti, executive managing director and global head of Private Equity, noted, “The real estate portfolio continued to be negatively affected by difficult market conditions during 2024, particularly in the office sector.”
Performance Breakdown for the Year Ended December 31, 2024
(All results are unaudited and net of fees and costs)
|
Category |
One-Year Return |
Four-Year Return |
Ten-Year Return |
|
Balanced Fund |
12.60% |
7.8% |
7.4% |
|
Total Fund |
12.30% |
7.4% |
6.9% |
|
Money Market & Fixed Income |
4.60% |
0.6% |
2.6% |
|
Mortgages |
6.40% |
1.7% |
3.6% |
|
Private Debt & Loan |
8.70% |
8.2% |
6.0% |
|
Public Equities |
24.70% |
12.5% |
10.3% |
|
Private Equity |
11.80% |
19.2% |
11.4% |
|
Real Estate |
-2.00% |
1.8% |
3.0% |
|
Infrastructure |
12.00% |
12.7% |
10.2% |
|
Renewable Resources |
1.90% |
10.6% |
9.6% |
Despite these investment outcomes, AIMCo experienced a significant governance shake-up in late 2024.
As reported by iGlobal News, the Alberta government dismissed AIMCo’s entire board of directors and its chief executive officer, Siddall, in November 2024, citing concerns about poor performance and rising costs,
As per Reuters, the government appointed former Canadian Prime Minister Stephen Harper as AIMCo’s new board chair, a move Premier Danielle Smith said would help “restore confidence in the long-term sustainability and success of AIMCo.”
These leadership changes followed earlier scrutiny over AIMCo’s strategies. The fund had faced public criticism in the past, including a $4bn loss during the COVID-19 pandemic tied to volatility-driven investment strategies.
AIMCo indicated that detailed financial performance will be released in its 2024 Annual Report in June 2025.
