Stephen Harper Appointed New Chairman of Alberta Investment Corporation

Former Prime Minister Stephen Harper in a file photo. The Canadian Press/Jeff McIntosh

Former Prime Minister Stephen Harper has been named chairman of the board of the Alberta government’s investment agency, the province has announced.

Harper’s appointment aims to “restore confidence and stability” in the agency after the previous board of the Alberta Investment Management Corporation (AIMCo) was dissolved over concerns about underperformance, the province said in a release.

Harper will lead the newly reconstituted board, which manages more than $160 billion in funds, including pension funds and the Heritage Savings Trust Fund. The province terminated the previous board on Nov. 7, citing rising costs and failure to meet required benchmark returns.

“We’re incredibly fortunate that Mr. Harper has agreed to take on this leadership role with AIMCo,” said Premier Danielle Smith in a Nov. 20 release.

“His appointment, and that of the rest of the board, are a strong step forward in giving all Albertans confidence in the long-term sustainability and success of AIMCo.”

Harper opted not to receive pay in the new position, saying in the release that he will take it as “a meaningful act of public service to my adopted home province of the last 46 years.”

The province said Harper, who served as prime minister from 2006 to 2015, is uniquely qualified for the position because of his “excellent” track record of managing taxpayer dollars and commitment to governance accountability.

To ensure consistent communications between the investment agency and the provincial government, Alberta’s deputy minister of treasury board and finance, Katherine White, will now be a permanent member of the board, officials said. She will not be paid for this role.

The province has an “ambitious” goal of building the Heritage Savings Trust Fund to more than $250 billion in the next 25 years, said Smith.

Under the previous board, from 2019 to 2023, AIMCo’s third-party management fees increased by 96 percent, the number of employees increased by 29 percent, and wage and benefit costs increased by 71, according to the province. These costs all increased while AIMCo managed a smaller percentage of funds internally, the province added.

In its latest annual report, AIMCo said it had $161 billion of assets under management as of the end of 2023, with 600 employees spread across offices in Edmonton, Calgary, Toronto, Luxembourg and London, U.K.

In the spring of 2020, the pension fund manager took a $4 billion dollar loss on the $110 billion it managed. AIMCo officials at the time said the loss was a result of COVID-19-related market swings and an ensuing oil price war.

Then-premier Jason Kenney defended the fund managers, saying at the time that the loss was a “fraction” of what was seen elsewhere.

The Canadian Press contributed to this report.