Alberta dismisses provincial pension manager's entire board, citing low returns
Nov 7 (Reuters) -Canada's main crude-producing province Alberta dismissed the Alberta Investment Management Corp's (AIMCo's) entire board on Thursday, saying the pension manager had underdelivered returns from the investments of provincial government funds it manages.
The province's finance minister has been appointed the sole director and chair for AIMCo on an interim basis and a new board chair will be appointed within 30 days, Alberta Premier Danielle Smith's government said in a statement, adding that clients will not experience any disruption during the transition.
AIMCo is one of Canada's top pension manager's with some C$158 billion ($114 billion) in assets. Its board had 10 members as of June 2024, when it released its 2023 annual report.
"After years of AIMCo consistently failing to meet its mandated benchmark returns, the Minister of Finance will be making changes to restore confidence in Alberta’s investment agency," the Alberta government said.
AIMCo's operating costs, management fees and staffing had increased in recent years without a corresponding increase to return on investment, it added.
From 2019 to 2023, AIMCo's total fund return averaged 7.62% annually, while during that period its third-party management fees increased by 96%, employees increased by 29% and salary wage and benefit costs increased by 71%, according to the province.
($1 = 1.3862 Canadian dollars)
Reporting by Ismail Shakil; Editing by Jamie Freed
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