Investment Performance - Ice Climber

Investment Performance

Active Management Generating Long-term Sustainable Returns

AIMCo earned a total fund net return of 9.1% in 2015. The net of fees return was 10.1% for pension and endowment clients, and 3.9% for government and specialty fund clients.

Returns From Active Management

Annually, the board and management agree on active return targets consistent with top quartile return on active risk. Since 2009, AIMCo has earned its clients value add of $4.0 billion net of fees.

In 2015, AIMCo earned a net of fees return of 9.1%, outperforming its active return target by 1.8%, resulting in value add return of $1.5 billion net of fees on total investment income of $7.5 billion net of fees.

AIMCo’s value add performance in 2015 was its strongest since inception, with strong outperformance across nearly all strategies. Record levels of value add were achieved in several asset classes, most notably Public Equities, Infrastructure, and Private Equity. Fixed Income and Real Estate strategies also contributed significant value add overall.

Investment Performance

- 2015 2014 2013 2012 2011
Rate of Return 9.1% 9.9% 12.5% 10.2% 4.8%
Benchmark 7.2% 10.5% 11.6% 8.2% 3.7%
Return relative to Benchmark $1,515 ($401) $589 $1,284 $715

Performance Benchmarks

AIMCo and its clients work together to identify the most appropriate benchmarks against which performance should be measured. In 2015, AIMCo adjusted certain benchmarks to achieve greater alignment with our clients.

The selection of appropriate benchmarks is important in investment management. Done properly, it ensures alignment of the client’s risk and return objectives to the investment strategy of the asset manager. Public market investment benchmarks comprise all of the attributes of an unbiased effective measure – transparent, stable, and investable. Illiquid asset classes are more difficult to benchmark given the lack of readily available comparison data for the physical assets invested in and due to the fact that by their very nature these investments are expected to provide an illiquidity premium relative to the nearest listed proxy.

AIMCo Asset Class Benchmarks Benchmark
- For year ended December 31, 2015
Fixed Income -
Cash and Money Market FTSE TMX Canada 91-Day T-bill Index
Short-Term Bonds FTSE TMX Canada Short-Term All Government Bond Total Return Index
Medium-Term Bonds, Including Mortgages FTSE TMX Canada Universe Bond Total Return Index
Long-Term Bonds FTSE TMX Canada Long-Term All Government Bond Total Return Index
Private Debt and Loan FTSE TMX Canada Short-Term Overall Index
Inflation Sensitive and Alternative -
Real Estate, Canadian & Foreign REALpac/IPD Canadian All Property Index – Large Institutional Subset
Real Return Bonds FTSE TMX Canada Real Return Bond Total Return Index
Infrastructure Total CPI 1 Month Lagged + 450 bps (5-year rolling average)
Timberlands Total CPI 1 Month Lagged + 450 bps (5-year rolling average)
Equities -
Canadian Public S&P/TSX Composite Total Return Index
Global Public MSCI World Net Total Return Index
Global Small Cap Public 1/3 S&P/TSX Small Cap Total Return Index, 2/3 MSCI World Small Cap Net Total Return Index
Private Equity MSCI All Country World Net Total Return Index

Autopista Central

Managing unique assets through their investment life cycle

Read More