Alberta Government Dismisses AIMCo Board Amid Criticism

The Alberta government has dismissed the entire board of the Alberta Investment Management Corporation (AIMCo) due to significant increases in operational costs and management fees that did not correspond with adequate investment returns. From 2019 to 2023, AIMCo's management fees nearly doubled, employee numbers grew by 29%, and salary costs rose by 71%, despite managing a smaller percentage of funds internally. Finance Minister Nate Horner has been appointed as the sole director and chair on an interim basis, with a new board chair to be appointed within 30 days. This move has sparked concerns over public confidence in AIMCo's ability to manage pensions, with critics like Alberta NDP Leader Naheed Nenshi expressing skepticism about the province's handling of pension management. The government's decision aims to refocus AIMCo on achieving better investment returns at lower costs. It comes amidst ongoing discussions about the potential establishment of an Alberta Pension Plan (APP).