The Alberta government has jettisoned the entire board of Alberta Investment Management Corp. (AIMCo), saying the investment manager of pensions and other funds in the province has seen “significant” increases in operating costs and management fees in recent years “without a corresponding return on investment.”

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From 2019 to 2023, AIMCo’s third-party management fees have increased by 96 per cent, the number of employees increased by 29 per cent and salary wage and benefit costs increased by 71 per cent, the government said in a news release Thursday, adding that the costs increased even though AIMCo managed a smaller percentage of funds internally during that time.

The release did not mention Evan Siddall, the chief executive of AIMCo, but he no longer appears on the pension manager’s website.

“Alberta’s government has decided to reset the investment corporation’s focus,” the statement said. “A new board chair will be appointed within 30 days.”

It went on to say that all previous board member appointments have been “rescinded” and that a new board would be established after a permanent chair is named.

In the interim, minister of finance Nate Horner has been appointed the sole director and chair for AIMCo.

“AIMCo’s work has direct consequences for Albertans,” Horner said in the statement. “While they have achieved returns for their clients, we are acting to bring a renewed focus on the best possible returns and low operating costs.”

Prominent members of AIMCo’s board were Jim Keohane, a pension veteran and former CEO of Healthcare of Ontario Pension Plan (HOOPP) and Bob Dhillon, founder and CEO of Calgary-based Mainstreet Equity Corp.

In another, albeit smaller, shakeup at the pension manager in September, chief investment officer Marlene Puffer left after less than two years on the job. There is no known connection between her departure and the board purge on Thursday.

Although the AIMCo board is appointed by the Alberta government, previous executives and directors have said there are measures in place to give the investment manager independence when it comes to investment decisions for clients.

Pension clients include the province’s teachers, judges, and public service. AIMCo also manages funds for government and endowments. 

• Email: bshecter@nationalpost.com

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