Alberta Investment Management (AIM) of Alberta Finance manages $64.7 billion in assets as of September 30, 2006. The most significant asset is the Alberta Heritage Savings Trust Fund (AHSTF).  The Heritage Fund's fair value stands at $15.4 billion as of September 30, 2006.

The Investment Operations Committee provides private sector oversight to AIM. The Deputy Minister chairs the Committee and members are selected primarily from the private sector. The committee meets at least quarterly and makes recommendations to the Minister regarding the operation of AIM.

Investment Philosophy

Our objective is to create portfolios that match the risk profiles and financial goals of client funds. We emphasize diversification within a long-term investment horizon and believe that both passive (indexed) and active strategies have a place in an investment portfolio. The asset allocation between passive and active strategies depends on the particular risk tolerance and investment philosophy of each client. 

Given the broad range of clients, AIM seeks to meet specific client investment objectives by providing a comprehensive set of products. Where appropriate, AIM integrates external managers to take advantage of specialized knowledge and additional diversification. AIM places a strong emphasis on understanding and communicating the risks within each product and fund to clients.

Assets Under Management
(at September 30, 2006)

AIM manages capital for clients including seven public sector pension funds, a number of endowment funds and a number of special purpose funds (sinking funds, insurance funds and reserves). A significant fund is the Alberta Heritage Savings Trust Fund (AHSTF). The AHSTF has the objective to maximize the long run return while providing income to the province's budget.

In order to meet the varied investment objectives of each client fund, as expressed in the clients' Statements of Investment Policies and Guidelines, the assets are invested across a full range of asset classes.

Investments are made in equities to generate longer-term growth while investments in fixed income securities are made where higher current income is important. Within each broad asset category specific investment strategies are undertaken. These strategies are grouped together into product pools.