"AIMCo's work has direct consequences for Albertans"—government targets lower costs, stronger returns
The Alberta government has dismissed the entire board of Alberta Investment Management Corp. (AIMCo), including CEO Evan Siddall, citing concerns over rising costs.
According to a statement reported by Financial Post, AIMCo, responsible for managing pensions, government, and endowment funds in Alberta, saw a “significant” increase in operating costs and management fees in recent years, with “no corresponding return on investment.”
Between 2019 and 2023, AIMCo’s third-party management fees rose by 96 percent, while the employee count increased by 29 percent. Salary, wage, and benefit costs also surged by 71 percent.
Despite these increases, AIMCo managed a smaller percentage of funds internally, as per a government news release on Thursday.
Although the release did not mention Siddall by name, Nate Horner, Alberta’s minister of treasury board and finance, confirmed during a media briefing that Siddall had been dismissed, saying, “I did relieve the CEO of his duties.”
Horner explained that the government has been “monitoring the situation at AIMCo with concern,” noting that a recent meeting indicated further cost increases. “It seemed like it needed a reset, and that’s what we did today,” he added.
The Alberta government plans to appoint a new board chair within 30 days, while Horner serves as the interim director and chair. All previous board member appointments have been rescinded, and a new board will be established after a permanent chair is named.
“AIMCo’s work has direct consequences for Albertans,” Horner stated, emphasizing the need to achieve “the best possible returns and low operating costs.”
AIMCo’s previous board included prominent figures such as pension expert Jim Keohane, formerly CEO of Healthcare of Ontario Pension Plan (HOOPP), and Bob Dhillon, CEO of Mainstreet Equity Corp.
In September, Marlene Puffer, AIMCo’s chief investment officer, departed after less than two years; her departure has not been linked to the recent board and CEO changes.
AIMCo manages investments for Alberta’s pension clients, including teachers, judges, and public service employees, as well as government funds and endowments.
Despite being appointed by the Alberta government, former executives and directors have maintained that AIMCo’s structure provides independence in client investment decisions.
In 2020, AIMCo lost $2.1bn on a volatility investing strategy. The board then initiated a review and committed to implementing recommendations, following which former CEO Kevin Uebelein departed in 2021, with Siddall succeeding him.
