Where do contributions go? Who invests the pension fund assets?
Pension fund contributions are not part of the Government’s general revenues, so they go to a separate fund that is directed by the LAPP Board of Trustees. This fund is managed by Alberta Investment Management Corp. (AIMCo), as directed by the LAPP Board. The investments are balanced in asset classes and are well-diversified for security and long-term growth. The current policy has 35.5% of the fund invested in fixed income investments (such as bonds and mortgages), 15% in Canadian equities, 24.5% in foreign equities, 10% in real estate and 17% in alternative investments (such as private equity, hedge funds, timberland, etc.). To view the Board’s funding policy, click here.
