Alberta Investment Management Corp. (AIMCo) has seen a promising future in the discussions led by former Bank of Canada governor Stephen Poloz on domestic investment opportunities. The asset manager posted an overall return of 6.9 per cent in 2023, despite challenges in its real estate portfolio, ending the year with $160.6 billion in assets under management.
The real estate portfolio was down 8.4 per cent at the end of 2023, offsetting gains in public equities and fixed income. AIMCo’s chief investment officer, Marlene Puffer, attributed the decline in real estate to the persistence of hybrid work arrangements. She expressed optimism that clarity around interest rates could lead to more deals in the sector.
Puffer also expressed confidence in Poloz’s ability to lead a working group focused on identifying domestic investment opportunities for pension funds in Canada. The group will explore investments in digital and physical infrastructure, airport facilities, artificial intelligence, and housing.
AIMCo’s real estate holdings are primarily in Canada and the United States, with the office segment accounting for a significant portion of the portfolio. Puffer highlighted the importance of productive discussions on additional infrastructure assets in Canada.
The asset manager’s annualized 10-year return was 6.7 per cent at the end of 2023, with plans to expand activity in private debt. Puffer emphasized the importance of strategic partnerships in expanding deal flow and allocations.
Overall, AIMCo remains optimistic about the future of domestic investment opportunities in Canada, particularly in infrastructure assets, as discussions led by Poloz and the working group progress.