The government of Alberta announced the introduction of legislation that would establish a new provincial corporation to manage Alberta’s investments.

The newly named Alberta Investment Management Corporation will have improved organizational governance, increased flexibility and opportunities for greater investment returns for Alberta’s savings, public sector pensions, endowments and other funds, the government said. It added that it expects that the new provincial corporation could improve net investment returns by 25 to 100 basis points.

Bill 22, the Alberta Investment Management Corporation Act, proposes the separation of the Investment Management Division from the Department of Finance into a provincial corporation. A recent study commissioned by the government concluded that a stand-alone organization would be the most appropriate structure to achieve investment excellence. The proposal follows best practices for top public sector investment funds such as the Canada Pension Plan, the B.C. Investment Management Corporation and the Ontario Teachers’ Pension Plan.

The legislation aims to balance operational independence with high standards of transparency and accountability. The Lieutenant Governor in Council will appoint a board of directors responsible for the oversight of the corporation. The government will continue to set the investment policy for all government funds.

The corporation will also be subject to the Fiscal Responsibility Act and its budget will be approved and published as part of the government’s budget process in the same manner as other non-commercial provincial corporations. It will fall under the mandate of the Auditor General, who will be entitled to attend, call and be heard at all meetings of the corporation’s audit committee.

Currently, Alberta Finance manages approximately $70 billion in assets, including the Alberta Heritage Savings Trust Fund and other public endowments, public sector pension plans and other funds.

Additionally, Alberta introduced the Securities Amendment Act, 2007 (Bill 21), which includes amendments to enhance the securities passport system, and further harmonize and streamline Alberta’s securities laws with other Canadian jurisdictions.