The Alberta Government Dismisses AIMCo Board Due to Increasing Costs and Underperformance

Alberta’s finance minister has dismissed the board of directors of AIMCo, the organization responsible for managing over $160 billion in pension, endowment, and government funds for the province.

In a statement, Horner cited poor performance as the reason for the decision, noting increasing staffing and management fees along with a consistent failure to meet benchmark returns.

The dismissal is effective immediately, with Horner assuming the role of sole director and chair for AIMCo until a new chair is appointed within 30 days, followed by the establishment of a new board.

Horner emphasized the need to refocus the investment corporation’s priorities.

The province disclosed that between 2019 and 2023, AIMCo’s third-party management fees surged by 96%, staff numbers grew by 29%, and salary, wage, and benefit costs rose by 71%, all while AIMCo managed a smaller percentage of funds internally.

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As of the end of last year, AIMCo managed $161 billion in assets and had around 600 employees across offices in Edmonton, Calgary, Toronto, Luxembourg, and London, UK.

“AIMCo’s work directly impacts Albertans,” Horner stated on Thursday. “While they have delivered returns for their clients, we are taking action to prioritize optimal returns and minimize operating costs.”