The Board evaluates the performance and measures the value returned by its investment manager for active investment decisions such as security selection. To do this, the Board compares the actual investment results to its investment policy benchmark. The benchmark return represents what the Plan could reasonably expect to earn without active management if it invested in the market indices in proportion to the policy asset mix approved by the Board.
AIMCo strives to earn more than market returns by over or under-weighting specific investments in relation to the indices. AIMCo is expected to deliver a return of 85 basis points or 0.85% per annum, net of fees, in excess of the policy benchmark over a four-year time horizon.
In 2016, AIMCo posted a return of negative 0.15% relative to the market-based policy benchmark of 5.99%. Private equity investments were the main contributor to the relative performance. AIMCo has added value in 2017 year-to-date.