Alberta Investment Management Corp., Edmonton, returned a net -4% for the second quarter of 2022 and a net -6.8% for the first half of the year, besting the respective benchmark returns of -5.3% and -7.9%.
"Inflation, slowing global economic growth, lingering supply chain and energy issues have created tumultuous conditions for investors so far this year," AIMCo said in a Wednesday release.
Over the four- and 10-year periods, AIMCo showed annualized net returns of 4.8% and 7.4%, respectively, outperforming their benchmarks. According to a spokesman for AIMCo, benchmark returns for the 4-year and 10-year periods were 4.1% and 6.7%, respectively.
The fund had C$136.6 billion ($106.1 billion) in assets under management as of June 30. However, that amount does not include more than C$30 billion in assets from Alberta Health Services, Alberta Teachers' Retirement Fund and Workers' Compensation Board that were transferred to AIMCo in 2021, according to the quarterly report issued alongside the release.
The spokesman also said by email that with respect to the transition of certain assets to AIMCo last year, "although the assets were transferred, they remain segregated for performance purposes."
As of June 30, the fund's asset allocation was 36% illiquid markets (including infrastructure, real estate, renewable resources, private equity); 33% money markets and fixed income (including bonds, mortgages, real return bonds, private debt and loan); and 31% in public equities, the quarterly report noted.
"Demand for inflation-sensitive private assets remained high and mid-year valuations in private equity, real estate and infrastructure were favorable for AIMCo client portfolios," the firm noted in the quarterly report.
In the second quarter of 2021, AIMCo had a net return of 5.2%, topping the benchmark return of 3.4%. For the first half of 2021, AIMCo delivered a net return of 7.3%, surpassing the benchmark performance of 3.8%.
