May 12, 2021

AIMCo Provides Update at Legislative Committee Meeting

AIMCo’s Chief Investment Officer is providing an improved outlook for the Alberta Heritage Savings Trust Fund, as the markets continue recovering from the initial shock of the COVID-19 pandemic. Dale MacMaster spoke during a meeting of the fund’s Standing Committee Friday regarding investment performance between October and December 2020.

“While we see millions of jobs lost, with an estimated 4.5% wiped off global GDP, the markets closed the calendar year with a gain of 10% in bonds and over 13% in stocks,” said MacMaster.

“Equity markets have continued to hit new all-time highs during the quarter, in fact, which has benefited Heritage Fund returns.”

The committee was presented with the following performance information:

• Over the third quarter of the 2020-21 fiscal year, the Heritage Fund earned a 3.7% rate of return and $538 million in net income.

• Over the past 5 years, the Heritage Fund earned a 6.3% average annual rate of return. Over the past 10 years, the average annual return was 8.8%.

Income from the Heritage Fund, valued at $17.3 billion on December 31, 2021, funds Albertans’ priorities like health care, education and infrastructure. AIMCo is the fund’s investment manager.

Similar meetings are held every quarter and are an opportunity for the committee, members of Alberta’s Legislative Assembly, to review the most recent performance report and ask questions about the fund.

MacMaster acknowledged that the fund’s investment performance struggled earlier in 2020, but long-term results must not be forgotten.

“AIMCo has outperformed its benchmarks 7 of the last 11 years, and prior to 2020, which I will give you was a dreadful year — it was a dreadful year for many investors — AIMCo was a top quartile performer over all periods,” he said.

“We expect to be back into the first-quartile zone again as we move into the future.”

A transcript of the meeting is available here.