AIMCo Achieved 8% Balanced Fund Return in 2023

The Alberta Investment Management Company announced on Monday that it had achieved an 8% return for its balanced fund in 2023, although below under the 9.3% return on the fund’s benchmark. The 8% return represents a net investment return of $8.9 billion, bringing the fund’s total assets to $160.6 billion at the end of 2023.

AIMCo invests on behalf of pensions, endowments, foundations and insurers in the Canadian province of Alberta. AIMCo’s balanced fund return represents a client mix across asset classes. The fund announced a total fund return of 6.9%, below its benchmark of 8.7%.

“During 2023, persistently high inflation and interest rates and challenging geopolitical factors combined to affect global markets,” said Evan Siddall, CEO of AIMCo, in a press release. “Our investment teams continued to seize opportunities and effectively mitigate emerging risks to deliver a solid return for our clients and the Albertans they serve.”

The balance fund has returned 8.0%, 5.3% and 7.3% annualized for the past one, four, and 10 years respectively. In the same period, the total fund has returned 6.9%, 5.0%, and 6.7%.

AIMCo will release detailed investment returns in its annual report, due out in June 2024.

Asset Class Returns

AIMCo’s highest-performing asset class was equities, which returned 15.8% in 2023. Private debt and loans returned 9.6%, and money market and fixed-income assets returned 7.7%. Private equity returned 6.7%. The fund’s only negative returns came in real estate, which returned negative 8.4% in 2023. Infrastructure and renewable resources returned 3.8% and 1.6% respectively.

“With a continued focus on long-term results, we made significant strides in implementing our new investment strategy and translating it into asset class specific strategies, while navigating challenging markets throughout 2023,” said Marlene Puffer, CIO of AIMCo, in a release. “As we set our sights on 2024, we will focus on enhancing value in our existing direct investments and on managing private asset class allocations in this environment of capital constraint and higher interest rates.”