Alberta Investment Management Corp., Edmonton, outperformed its composite benchmark in 2022, buoyed by strong returns generated by its infrastructure and renewable resources assets.
Specifically, AIMCo delivered a net return of -3.4% for 2022, versus a net -5.2% performance by its composite benchmark, said a Thursday news release.
In 2021, AIMCo produced a net return of 14.7%, compared to a benchmark return of 8%.
AIMCo reported total assets under management of C$158 billion ($116.6 billion) as of Dec. 31. For the four- and 10-year periods through Dec. 31, AIMCo delivered annualized net returns of 5.9% and 7.2%, respectively, compared with respective benchmark returns of 5.3% and 6.5%.
By asset class, renewable resources, infrastructure and real estate portfolios posted the strongest one-year returns, at 25.7%, 16.8% and 4.6%, respectively. The poorest returns came from public equities (-10%), money market and fixed income (-8.1%) and private equity (0.5%).
As of Dec. 31, AIMCo's asset allocation comprised public equities (31.3%); money market & fixed income (27.4%); real estate (17%); infrastructure (12.9%); private equity (8.8%); and the remainder in renewable resources (2.2%), based on figures provided in the release.
"With high inflation, rising interest rates and unprecedented declines in both public equities and fixed income markets taking place simultaneously, 2022 was an extremely challenging year for investors," said Evan Siddall, CEO of AIMCo, in the release.
Looking at the near term, Mr. Siddall said that as markets are expected to remain volatile, "we will make strategic shifts in our investments that will enhance our commitment to private asset classes."