Government pension managers in Alberta and Quebec posted strong returns and outperformed their benchmarks, according to earnings reports released Wednesday.
The Alberta Investment Management Corporation (AIMCo) earned a total fund return, net of fees, of 5.2% in Q2, relative to its aggregate benchmark of 3.4%, a release said. Total client assets under management ended the quarter at $123.4 billion.
AIMCo invests globally on behalf of 32 pension, endowment and government funds in Alberta.
“Client portfolios continued to perform well amidst dynamic market conditions, generating $4 billion of value-add above benchmarks over the first half of 2021,” said Dale MacMaster, AIMCo’s chief investment officer, in the release.
“This outcome has been driven by solid performance in all asset portfolios, notably public and private equity. Despite rising yields during the early part of 2021, fixed income also contributed to AIMCo’s strong second quarter performance.”
As of June 30, 2021, AIMCo earned a total fund return of 7.3% year-to-date, surpassing its benchmark of 3.8%.
Over four and 10 years, annualized total fund returns were 6.9% and 8.1%, respectively. These results represented underperformance relative to the benchmark of 0.1% and 0.5%, respectively.
The Caisse de dépôt et placement du Québec (CDPQ), which manages funds for public pensions and insurance plans in the province, also posted results on Wednesday.
Over the six months to June 30, 2021, the CDPQ earned a return of 5.6%, outperforming its benchmark’s 4.4% return, a release said.
Over five years, the CDPQ generated an annualized return of 8.5%, compared to 8.3% for its benchmark, and produced $126 billion in investment results.
Over 10 years, CDPQ’s annualized return was 8.8%, also above its benchmark, which stood at 8.3%.
Net assets reached $390 billion at the end of June.
“In the first half of 2021, our teams continued to position the portfolios to navigate a new environment, especially in real estate and equity markets, where ongoing initiatives are already producing tangible results,” said Charles Emond, president and CEO of the CDPQ. “During the period, we also increased our exposure to promising sectors, such as logistics and technology.”