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.
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