Explainer: What Is the Alberta Investment Corporation Harper Has Been Tapped to Lead?

Upheaval at the Alberta Investment Management Corporation has brought the rarely discussed provincially owned investment agency into the public eye in recent weeks with firings, hirings, and appointments changing the face of the entity responsible for managing billions in public funds.
The province announced on Nov. 20 that it had appointed former Prime Minister Stephen Harper as chairman of the Crown corporation, saying it would “restore confidence and stability” in the agency.
The Alberta Investment Management Corporation, better known as AIMCo, has been investing Alberta’s money for nearly 17 years, yet it is far from a household name in Canada.
AIMCo stands as one of the largest institutional investors globally, overseeing a diverse portfolio that includes public sector pension funds and endowments. It is also responsible for managing Alberta government funds designated for public services.
These costs all increased while AIMCo managed a smaller percentage of funds internally, the province added.
The pension fund’s manager took a $4-billion dollar loss on the $110 billion it managed in the spring of 2020. AIMCo officials at the time said the loss was a result of COVID-19-related market swings and an ensuing oil price war.
Finance Minister Nate Horner said last week’s dismissal of the board would bring a “renewed focus on the best possible returns and low operating costs.”
Harper led the Conservative Party of Canada from 2004 to 2015 and was elected prime minister in 2006. He served for three terms before losing in 2015 to the current Justin Trudeau-led Liberals.
The now 65-year-old Harper is described by the UPC party as being fiscally responsible and keeping Canada on a steady course during the Great Recession that began in late 2007 and lasted through mid-2009.
“Over the last decade, AIMCo has earned $62.2 billion in net investment returns for its pension, endowment, insurance, and government fund clients,” the board said in its year-end report.
The majority of the money it manages—$118.4 billion as of last year—comes from the province’s public sector pension plans, representing hundreds of thousands of Albertans.
The agency also oversees $27.3 billion in investments for several endowment funds, including the Alberta Heritage Savings Trust Fund and is responsible for managing $425 million in key government assets. Much of the money it manages for the province is used to fund infrastructure, social programs, and education.
AIMCo also manages the investments for several insurance-related funds on behalf of provincial arms-length organizations including the Workers’ Compensation Board. These funds amount to $12.9 billion of AIMCo’s assets and are invested “with an emphasis on stability and preservation of capital,” the report said.
AIMCo also manages $1.6 billion in assets for select specialty funds, including some provincial arms-length organizations.
The corporation makes its investments in three categories: public equities, fixed income, and private markets, which includes real estate, infrastructure, private equity, and renewable sources.
The corporation currently represents “a majority of the world’s cultures” with more than 40 languages spoken by those it employs.