AlBErTA INvESTMENT MANAgEMENT COrpOrATION

AnnuAl RepoRt 2010/11
StRAight FoRwARd
AIMCo

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Government
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Pensions
Endowments
Cost
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Client Investment
Policies
AIMCo’s services to clients include investment
management, investment policy strategy
implementation, performance measurement and
reporting, asset administration and compliance.
The Alberta short-term government
Funds AIMCo manages are used for
priorities as diverse as health care,
education, infrastructure and social
programs. Withdrawals to fund these
government programs reduced
AIMCo’s assets under management.
AIMCo oversees and manages the
retirement income needs of over
300,000 active and retired public
sector employees. Annually, these
funds pay out more than $1 billion
in pension payments, refunds and
transfers to other plans.
The Alberta Heritage Endowment
Funds and other endowments make
up the largest system of its kind in
Canada. In the 2010/11 fscal year, the
Heritage Fund earned over $1 billion
under AIMCo’s management.
AIMCo

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Pensions
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Client Investment
Policies
Our clients are responsible for developing
their long-term investment policy. Upon
request, we assist with asset-liability
modelling, benchmark proxy selection,
investment policy statement development,
and assessing capacity for risk.
StRAight FoRwARd
this phrase best describes our unwavering commitment and
determination to build an organization that can achieve consistently
superior fnancial results for our clients. AiMCo was created in 2008 on
the premise that, with $70 billion of assets, we had the critical mass
to create an investment organization that could rank among the best.
our starting point was not ideal. the investment organization was
under-resourced. Revamping our systems and achieving best practice
for operational effectiveness will take another two years. guided by a
strong Board, we have made the most of AiMCo’s freedom to attract
and retain the best. our efforts to achieve better than market returns
are paying off in listed assets, but we still have challenges restructuring
some legacy unlisted assets. AiMCo targets long-term results. we are
putting in place the foundation necessary for success. in a few years it
should be clear we are achieving our goals.
Table Of cOnTenTs
About AIMCo (inside fold) Investment Highlights 2 Assets Under Management 3 Message from the Chair 4 Q+A with the CEO 5
Executive Management Team 8 Managing Investment risk 10 Investment performance 11 Building an Innovative Operational platform 34
people Strategies 36 Compensation Discussion and Analysis 37 governance 39 Board of Directors 42 Management’s responsibility for
Financial reporting 44 Independent Auditor’s report 45 Financial Statements and Notes 46 Investments Over $300 Million 60
Senior Management Team (inside back cover)
ANNUAl rEpOrT 2010/11
1
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
About AIMCo
WHaT We dO
Alberta Investment Management Corporation (AIMCo) is one of Canada’s largest institutional investment managers. We
are responsible for the fnancial assets of 26 clients: a diverse group of Alberta public sector pension plans, endowment
funds and certain assets for the government of Alberta.
With about $70 billion under management, we create portfolios that refect our clients’ chosen risk and return profles.
AIMCo’s Balanced Funds clients ($50 billion) are invested in equities, bonds and infation sensitive assets. The remaining
government of Alberta clients ($20 billion) are invested in money market and short-term bonds. Our mandate is to deliver
consistent, superior, long-term risk-adjusted returns for our clients.
HOW We plan TO earn sUperiOr reTUrns
Taking risk has a persistent long-term reward
Bonds provide high security of principal if held to maturity, but historically have low long-term return on investment.
riskier assets like stocks provide much higher long-term returns to compensate for the greater variability of short-term
returns and the extreme downside in years such as 2008.
We manage risk for maximum return
Our clients have limited tolerance for the capital loss that can result from taking risk. That makes risk our scarce resource.
risk must be deployed where and when we expect it to earn the highest return.
AIMCo’s goal is to improve on the passive returns our clients could achieve without us
The simplest way to deploy risk is through index investments in a broad range of listed markets. AIMCo’s size allows it to
access active return strategies to generate superior long-term risk-adjusted returns.
Active management is a critical source of returns
The bulk of AIMCo’s returns will always come from portfolio exposure to listed markets. Superior security, sector and
country selection can add value, while also providing diversifcation benefts.
AIMCo’s comparative advantages are cash and patience
Many investment opportunities are only accessible to investors with a long investment horizon. Most of the capital we
manage will not be needed for many years, so AIMCo can earn a premium return for our clients by committing sizeable
investments for long periods of time.
Investment strategies must respond to changing conditions
good investment ideas don’t last forever, and attractive returns accrue to those who identify new opportunities early.
returns in listed assets are mostly unpredictable in the short run, but extremely high market valuations tend to be
followed by an extended period of poor future returns.
Good governance has its own return
Well-governed companies tend to provide superior investment returns. In certain circumstances, AIMCo will work with
other shareholders to promote best practice in corporate governance.
We invest in cost-effective internal management
We employ the right people with the right expertise in Investments and Operations to manage the corporation in the most
cost-effective manner. Strong operational and risk management support can avoid costly investment implementation errors.

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ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Investment Highlights
asseTs Under ManaGeMenT
For the years ended March 31 ($ billions)
23.0
16.5
29.4
27.6
17.3
25.8
31.4
18.5
18.9
Pensions 0.38 0.73 0.90
Govt Funds -0.35 -3.41 -7.60
Endowments -0.03 -2.17 -0.57
0
20
40
60
80
-4
-3
-2
-1
0
1
0
20
40
60
80
-8
-6
-4
-2
2
0
2009 2010 2011 2009 2010 2011
AIMCo ANNUAL ASSETS UNDER MANAGEMENT
I Pensions I Endowments I Government Funds
ANNUAL NET CONTRIBUTIONS
68.9
70.7 68.8
-0.35
-0.03
0.38
0.73
-2.17
-3.41
0.90
-0.57
-7.60
BALANCED FUNDS
(Pensions & Endowments)
AIMCo TOTAL GOVERNMENT FUNDS
1%
OVERLAYS
14%
INFLATION SENSITIVE

46%
MONEY MARKET
& FIXED INCOME
39%
EQUITIES
1%
OVERLAYS
19%
INFLATION SENSITIVE
26%
MONEY MARKET
& FIXED INCOME
54%
EQUITIES
2%
INFLATION SENSITIVE

98%
MONEY MARKET
& FIXED INCOME
-20
-15
-10
-5
0
5
10
15
20
-20
-15
-10
-5
0
5
10
15
20
-20
-15
-10
-5
0
5
10
15
20
0
5
10
15
20
15
20
15
20
0
5
10
0
5
10
2010 12 11
2011 8.2 8.2
2010 17.8 17.8
2011 10.3 10.5
2010 3.2 1.0
2011 3.1 2.5
AIMCo TOTAL
I Actual I AIMCo Total Benchmark
BALANCED FUNDS (Pensions & Endowments) GOVERNMENT FUNDS
12.0
11.0
8.2 8.2
10.5
3.2
1.0
3.1
2.5
10.3
17.8 17.8
2010 2011 2010 2011 2010 2011
invesTMenT perfOrMance
For the years ended March 31 (%)
asseT Mix
As at March 31, 2011
ANNUAl rEpOrT 2010/11
3
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Assets Under Management
Total assets under management did not change much this year. Drawdowns in the Sustainability Fund to fund
government programs were slightly larger than the growth in balanced funds.
By client type as at March 31, 2011
AIMCo ASSET ClASS
MArkET vAlUE MONEY MArkET INFlATION
($ MIllIONS) & FIxED INCOME SENSITIvE EQUITIES OvErlAYS
aiMco TOTal $ 68,801 46% 14% 39% 1%
Balanced Funds $ 49,950 26% 19% 53% 1%
endOWMenT fUnds 18,518 26% 18% 55% 1%
Heritage Savings Trust 15,466 26% 19% 55% 1%
Heritage Medical research 1,344 27% 18% 54% 1%
Heritage for Science and Engineering 769 27% 18% 55% 1%
Heritage Scholarship Trust 754 28% 15% 56% 1%
long-Term Disability Bargaining Unit 138 28% 11% 60% 1%
long-Term Disability Management 48 28% 10% 61% 1%
pensiOn plans 31,432 27% 20% 53% 1%
local Authorities 18,116 30% 23% 47% 1%
public Service 6,339 23% 15% 61% 1%
Management Employees 2,626 22% 19% 58% 1%
Universities Academic 2,586 17% 18% 64% 1%
Special Forces 1,522 26% 15% 58% 1%
Judges 99 43% 7% 50% 0%
Judges Supplementary retirement 85 46% 5% 49% 0%
Management Supplementary retirement 60 38% 11% 50% 1%
government Funds $ 18,850 98% 2% 0% 0%
sHOrT-TerM GOvernMenT fUnds 15,916 100% 0% 0% 0%
Sustainability 11,396 100% 0% 0% 0%
general revenue 1,314 100% 0% 0% 0%
Money Market Depositors
(1)
2,310 100% 0% 0% 0%
Debt retirement Account 880 100% 0% 0% 0%
Alberta Municipal Services Corporation 10 100% 0% 0% 0%
Management Closed pension Membership 5 100% 0% 0% 0%
special pUrpOse GOvernMenT fUnds 2,935 86% 14% 0% 0%
Workers’ Compensation Board 1,359 70% 30% 0% 0%
Agriculture Crop Insurance 871 100% 0% 0% 0%
Alberta Cancer prevention legacy 498 100% 0% 0% 0%
Credit Union Deposit guarantee 151 100% 0% 0% 0%
Special Areas long-Term Account 27 100% 0% 0% 0%
Alberta Securities Commission 29 72% 0% 28% 0%
(1)
Includes various government agencies, organizations, Crown corporations and other accounts.

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ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Message from the Chair
We are building AIMCo on the premise that a conscientiously governed and
disciplined organization that can attract and retain highly talented investment
expertise will, over time, produce superior investment results. The importance of
superior investment returns is brought home by the fact that the contributions
required to fnance a pension can be reduced by roughly 25% for every 1%
in sustained incremental return.
We have now completed our third year as AIMCo. The frst year was overshadowed
by the fnancial panic, but we utilized that and the two following years to put in
place the controls and systems without which we could not aspire to investment
excellence. That challenge proved greater than we had initially expected but we
believe AIMCo has made signifcant strides in that regard. For example, we have
implemented sound risk management and measurement controls and we are
well on our way to certifcation under Section 5970 of the Canadian Institute of
Chartered Accountants Handbook.
AIMCo’s predecessor company, lacking the necessary internal systems and operating
infrastructure, relied extensively on external managers. That is an expensive option
as evidenced by historical budgets in which the 20% of the assets managed
externally accounted for approximately 80% of the expenses. Since AIMCo’s launch,
management has concentrated on enhancing our risk management and operational
controls, and on strengthening the internal talent pool both through development
and recruitment. As a result, we have been able to meaningfully increase the
percentage of assets managed internally and use the savings to fnance operational
improvements. We participated in a number of innovative transactions across the
investment spectrum this past year, investments which should prove rewarding.
While it takes years to build an outstanding investment manager and investment
returns are still constrained by restructuring and start-up costs, we are optimistic that
these steps will lead to ever more attractive returns in future years.
We are committed to working collaboratively with our clients to understand their
challenges and implement effective solutions within their prescribed risk limits.
We shall also be devoting additional resources to improving the effectiveness of
client communication and reporting.
In closing we would like to acknowledge the signifcant contributions of David
Bissett and Frank layton, Q.C. who retired from the Board this past year. Their
insight and experience assisted in shaping AIMCo’s strategic direction as a Crown
Corporation. We are pleased to welcome two new Board members. ross grieve,
Chairman of pCl Construction Holdings ltd., joined in December 2010 and
kurt Winkelmann, Head of risk & Analytical research of MSCI Inc. and a former
partner of goldman Sachs, in April 2011. Their business acumen and expertise will
be an invaluable asset to AIMCo. We would also like to acknowledge and thank the
government of Alberta, and particularly, the Department of Finance and Enterprise
for their unstinting support. Finally, we thank leo de Bever and his team for their
stewardship and unwavering commitment to creating an investment manager of
which Albertans will be proud.
a. cHarles baillie, O.c.
Chair
on behalf of the Board
of AiMCo, i am pleased
to report another year of
progress in our quest to build
a superior Alberta-based
investment manager. For the
fscal year ended March 31,
2011, AiMCo achieved an
aggregate net return of 8.2%
on the $68.8 billion of assets
we manage for pensions,
endowments and short-term
government funds, matching
the net market return on
investment policy.
ANNUAl rEpOrT 2010/11
5
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Q+A with the CEO
a: AIMCo’s absolute fscal year return of 10.3% on pensions and endowment
assets, and 8.2% on total assets including short-term government funds
mostly refects above average market returns. Active management returns
are inherently volatile. Their contribution was negligible this year, but did add
$750 million over the last two fscal years. Most of our challenges were in
unlisted assets; valuations often lag when listed markets do well, as they have
done recently. restructuring costs for underperforming historical private equity
assets detracted about 0.2%. rapid growth in recent years to many unlisted
categories gave rise to usual lags in return relative to listed benchmarks.
a: peer comparisons are of limited value. The different circumstances and
preferences of organizations are refected in their policy asset mix and risk limits.
Our clients’ policy to keep foreign currency exposure mostly unhedged did cost
a few percentage points last year, but hedging makes little long-term difference.
Some peers had higher unlisted returns refecting good decisions often made
a decade earlier; excluding real estate, our unlisted assets are of more recent
vintage. AIMCo is prohibited from specifc types of leverage, which some peers
elsewhere used to great advantage in 2010.
Q: how did AiMCo perform
in 2010/11?
Q: how did AiMCo do
relative to its peers?


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ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Q+A WITH THE CEO
a: leverage does not always increase risk of loss. looking just at assets, borrowing
to buy stocks does indeed increase total risk: it improves return when asset prices
are rising, but 2008 showed the downside when prices fall. However, proper use of
leverage can reduce asset/liability pension funding risk. pension funding risk arises
when assets do not resemble the nominal and real return bonds that best match
nominal and real pension promises. Borrowing to buy more of those assets can
lower funding risk.
a: Opportunities do not come in neat geographical packages. We did acquire
a very attractive Canadian industrial real estate portfolio, and we made a
number of investments in Canadian companies seeking to strengthen their
global position. The Chilean toll road acquisition and the Australian timberland
purchase refect our increased capacity to seek out attractively priced assets
wherever they are located.
a: AIMCo has a mandate to focus on risk-adjusted return. Alberta assets make
up 8% of the total portfolio. paradoxically, I have been criticized for focusing too
much on Alberta (i.e., neglecting global portfolio diversifcation), but also for not
focusing enough on Alberta (i.e., not helping the provincial economy diversify).
Because of strong global long-term demand for resources and agricultural
products, many good future opportunities may be Alberta-related. When one
comes along, we will not let optics stand in the way of earning good returns.
a: After 30 years of phenomenal bond returns refecting a drop in interest rates
from 20% to 2%, we see rough weather ahead. The principal of most bonds
may be safe, but buys a lot less on maturity. Stocks may be at risk near-term,
but high quality companies with a strong market position could offer better
long-term return on risk than fxed income. Opportunities in infrastructure may
also increase, as governments face rising funding pressures. geographically, Asia
may slow down in the near term, but we still believe that Western Canada’s
resources will remain attractive. What looks like the biggest energy technology
revolution in 100 years will create opportunities both in the conventional and
alternative sectors of that market.
a: Convincing everyone to retain a long-term focus and not be myopic about
quarterly or even annual results. Over most of human history, you had to be good
at surviving today, or there was no tomorrow. Most people have trouble evaluating
long-term costs, risks and opportunities in pension programs, because we have
had less than a century of practice. Our instinctive response to poor results today
is to be wary of pots of gold at the end of long run rainbows. That very reaction
could be what is keeping long-term return on risk higher than it should be.
Q: leverage did pay off last
year, but what about the
downside in years like 2008?
Q: You are going farther
afeld to buy unlisted assets.
why not stay closer to home?
Q: Are you considering any
investments in Alberta to
support the local economy?
Q: Are there any big changes
in the attractiveness of
various asset classes?
Q: what do you see as your
biggest challenge in the
years ahead?
Economies of scale
AiMCo ClientS get the BeneFit oF lARge eConoMieS
oF SCAle in ASSet MAnAgeMent.
ANNUAl rEpOrT 2010/11
7
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Q+A WITH THE CEO
a: Organizations like that do not rise like a phoenix: they take fve years or
more to mature. Our starting position was less than ideal. In an attempt to
emulate peers, our predecessor organization increased investment complexity
in unlisted assets between 2004 and 2008, without proper operations and
IT support. It was like an old volkswagen trying to purr like a porsche. In
Operations, processes and controls are now far more robust, but it still feels like
a construction zone. Most IT projects take 18 months to put in place. To deal
with 10 years of under-investment, we are halfway done implementing a dozen,
without any hiccups. That is a huge accomplishment in itself.
a: Nothing. Spending that money made it possible to reduce our dependence
on expensive externally managed assets and attract the talent to manage more
assets internally at a fraction of the cost without sacrifcing return. Our costs
are as low as those of peers of similar size and AIMCo clients get the beneft of
large economies of scale in asset management.
a: I wish I had a magic wand to “fast forward” the work in progress
by a few years, but a lot has already been achieved. We started with an
organization that generated index returns after expenses, with real estate,
mortgages and fxed income doing quite well. We have now attracted most
of the investment professionals needed to get us to “superior” return on risk.
Operations are moving mountains to build the necessary support structure.
Along the way, we have added over 125 professional jobs and $30 million per
year to the Alberta economy.
leO de bever
Chief Executive Offcer and Chief Investment Offcer
Q: where are you in creating
“an Alberta institutional
manager that ranks among
the best”?
Q: how much did all that
hiring and it spending add
to client costs?
Q: So, what do you see as
AiMCo’s contribution so far?
125 jobs
AiMCo hAS CReAted oveR
125 pRoFeSSionAl joBS.
$30 million
AiMCo hAS Added $30 Million peR YeAR to the
AlBeRtA eConoMY.

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ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Left to right: Sally Chan, John Osborne, Lorne R. Anderson, Warren Cabral, Leo de Bever, A.J. (Pine) Pienaar, Jagdeep Singh Bachher and Carole Hunt
Executive Management Team
ANNUAl rEpOrT 2010/11
9
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
ExECUTIvE MANAgEMENT TEAM
leO de bever
Chief Executive Offcer and
Chief Investment Offcer
leo leads the AIMCo team in its efforts to
deliver superior long-term results for our
clients. leo holds a BA in Economics from
the University of Oregon and received
an MA and phD in Economics from the
University of Wisconsin at Madison.
JaGdeep sinGH bacHHer
Chief Operating Offcer
Jagdeep leads the AIMCo team in
its efforts to build outstanding client
relationships and create an innovative
operational platform to support investment
decision-making. Jagdeep holds a BASc in
Mechanical Engineering and an MASc and
phD in Management Sciences from the
University of Waterloo.
Warren cabral
Chief Financial Offcer
Warren is responsible for all fnancial
operations and services for AIMCo. Warren
holds the CA designation, is a member of
the Institute of Chartered Accountants of
Alberta and received a BComm from the
University of Alberta.
carOle HUnT, Q.c.
Chief legal Counsel and
Corporate Secretary
Carole manages internal and external
legal services provided to AIMCo and is
responsible for Compliance. Carole holds
BComm, MBA and llB degrees from the
University of Alberta and is a member of
the law Society of Alberta.
JOHn OsbOrne
Chief risk Offcer
John oversees the operational and
investment risk management program.
John holds a CA designation, is a CFA
charterholder and received a BAdmin from
Brock University.
lOrne r. andersOn
Senior vice president, Human resources
lorne leads our efforts to attract and
retain the best people for the AIMCo
team. lorne was a senior manager with
one of Canada’s leading chartered banks
and is a Fellow of the Institute of
Canadian Bankers.
sally cHan
vice president, Internal Audit
Sally leads the internal audit function. Sally
holds a CMA designation; is an associate
of the Institute of Chartered Secretaries
and Administrators in Canada; is Certifed
in the governance of Enterprise IT (CgEIT);
and received an MA from the University of
British Columbia.
a.J. (pine) pienaar
Senior vice president, Client relations
pine leads AIMCo’s team responsible
for building and strengthening client
relationships. pine holds a BComm from
the University of Natal, South Africa.

10
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Managing Investment risk
Most of our portfolios target a higher return than can be earned from investing in relatively safe assets like T-bills and
government bonds. Trying to capture the “upside” from assets with higher expected return like equities is impossible
without accepting the “downside” risk that returns will in extreme circumstances fall short of long-term averages by a
painful margin, as they did in 2008.
The long-term reward for taking risk has remained high, most likely because investors have limited tolerance for
unpredictable and painful short-term surprises. If risk appetite were unlimited, all capital would be allocated to equities,
the asset class with the highest expected return. Our clients place a much lower limit on acceptable risk, and that limit
becomes our “risk budget”, the scarce resource we manage for maximum return.
Asset mix policy and the associated listed market benchmarks provide a measure of client tolerance for “passive” or
“market” risk – underperforming long-run return expectations because of poor short-term market returns. Acceptable
ranges around asset mix policy allocations signal tolerance for “active” risk – underperforming short-term market returns
because of poor returns from active management decisions.
passive risk is by far the dominant component of total risk. Over four years, the approximate real (infation-adjusted) value of
$100 million invested in a market index portfolio of 60% stocks and 40% bonds can be below expectations by $50 million
in the worst 1% outcome.
Active risk is small compared to passive risk when considered in isolation. Its incremental contribution to total risk is
usually even smaller, since markets and managers do not typically experience extreme events at the same time.
pension plans are also concerned about “asset/liability mismatch” risk – the possibility of pension obligations growing
faster than pension assets, causing the plan to become underfunded. pension obligations typically look like some
combination of conventional and infation-linked government bonds. Investing pension contributions in those assets
would keep assets growing at the same pace as liabilities. However, most plans mismatch assets and liabilities by
allocating most of their assets to stocks, hoping that the higher return will reduce the long-term contributions required
to fnance pensions.
If we expect to earn a return on risk, we cannot eliminate passive, active, and asset/liability risk, but we can measure and
manage it within client-defned limits. risk measurement and management is as much a language for comparing and
contrasting return and risk across opportunities as it is a set of numbers measuring historically observed extreme
annual losses.
We stress test our portfolios to see the impact of various extreme historical and potential market scenarios. We also
continuously monitor key operational and fnancial risks including credit, market, solvency, liquidity and counterparty
concentration risk for derivatives.
Quantitative investment risk measurement systems have improved over the last 20 years. When used properly, they
provide a good measure of how bad things can become in extreme circumstances. We continue to recruit more risk
management staff and invest in better risk technology. Continuous review of measured risk is also an excellent way of
gauging whether investment strategy has been properly implemented.
A few years ago we set a $500 million target for return on active risk net of expenses, or about 1% of our balanced
pension and endowment funds. To constrain downside risk from active management, we set an active risk budget that
will over four years allow us to reach this target if risk is deployed with the skill of a frst quartile manager.
AIMCo’s capacity to deliver consistently positive active return will increase with the maturity of our investment program.
Over time, we expect to raise the annual active return target, which will require a commensurate increase in the active
risk budget needed to achieve that return.
ANNUAl rEpOrT 2010/11
11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Investment performance
TOTal aiMco perfOrMance
AIMCo’s total fund return was 8.2% for the year ended March 31, 2011, marginally better than the AIMCo Total Fund
Benchmark. Most listed assets earned a higher than market return, but that was offset by lower than market returns in
unlisted assets. The return on pension and endowment assets was 10.3%.
aiMco’s Total, balanced and short-Term Government performance
ANNUAlIzED rETUrNS (%)
AS AT MArCH 31, 2011
pErFOrMANCE 1 YEAr 2 YEAr
aiMco TOTal fUnd 8.2 10.1
Benchmark 8.2 9.6
balanced fUnds 10.3 14.0
Benchmark 10.5 14.1
sHOrT-TerM GOvernMenT fUnds 3.1 3.2
Benchmark 2.5 1.7
perfOrMance bencHMarKs
When AIMCo was formed, performance was measured by about 90 separate benchmark components. Some were minor
variants of the same listed market benchmarks. Others refected absolute return aspirations that already included the
expected return from active management.
A policy benchmark should measure the net return our clients could achieve without AIMCo, by passively implementing
investment policy with listed bond and stock market index investments. Unlisted allocations should be linked to the
closest listed return and risk proxy. Consistent with this principle, AIMCo adopted internal performance management
benchmarks on July 1, 2009.
The differences between the AIMCo and client benchmarks have diminished over time as most clients agreed that our
approach had merit because it made a better distinction between short-term market forces and incremental return from
manager skill. The market benchmarks pose a higher hurdle in rising markets, while the older absolute return targets
were impossible to achieve in a year like 2008.
There is now broad agreement on benchmarks between AIMCo and its clients. Judging historical outcomes using measures
now seen as less than perfect is not helpful. The timing of benchmark changes by itself added to the confusion. So we
are reporting results for calendar years 2009/10, and for the last two fscal years against AIMCo benchmarks in effect in
the last fscal year.

12
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
INvESTMENT pErFOrMANCE
aiMco Market return benchmarks
As at March 31, 2011
ASSET ClASS BENCHMArk
fixed incOMe
Cash and Money Market DEx 30-Day T-Bill Index or DEx 91-Day T-Bill Index
Short-Term Bonds DEx Short-Term All government Index
Medium-Term Bonds, including Mortgages DEx Universe Bond Index
long-Term Bonds DEx long-Term All government Bond Index
inflaTiOn sensiTive and alTernaTives
real Estate, Canadian and Foreign realpac/IpD Canadian large Fund Index
(1)
real return Bonds DEx real return Bond Index
private Debt and loan 70% DEx real return Bond Index/30% MSCI World Index
Timberlands 50% DEx real return Bond Index/50% MSCI World Index
(2)
Infrastructure 50% DEx real return Bond Index/50% MSCI World Index
(2)

Commodities MSCI All Country World Index
(3)
eQUiTies
Canadian public S&p/TSx Composite Total return Index
global public MSCI World Index
Emerging Markets public MSCI Emerging Markets Index
Hedge Funds MSCI All Country World Index
(4)
private Equity 25% S&p/TSx Composite Total return Index/
75% MSCI World Index (ex Japan)
Overlays
Asset Allocation and Overlay pools Benchmark appropriate for underlying asset class
(1)
Came into effect July 1, 2010. Custom benchmark of IPD comprised of Canadian institutions of over $1.5 billion covering about 80% of the total capital
value of the IPD Index.
(2)
Hedged to Canadian dollar.
(3)
For the period between April 1, 2010, and June 30, 2010, the benchmark for the Commodities asset class was the S&P GSCI Total Return Index.
(4)
For the period between April 1, 2010, and January 31, 2011, the benchmark for the Hedge Funds asset class was the HFRX Global Hedge Fund Index
(hedged to Canadian dollar).
ANNUAl rEpOrT 2010/11
13
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
INvESTMENT pErFOrMANCE
reTUrns frOM acTive ManaGeMenT
Since 2009, the AIMCo Board and management agreed on a stretch target of $500 million for net value-added. This
represents about 1.0% of balanced fund assets. Asset groups are allocated a share of the total target based on what the
management team considers to be our capacity to take advantage of attractive opportunities.
investment performance
2010/11 2009/10
(%) fiscal year FISCAl YEAr
rate of return 8.2% 12.0%
Benchmark 8.2% 11.0%
return above Benchmark $ 14 $ 748
The Total Fund earned 8.2% in fscal 2010/11, generating $5.4 billion in investment income and slightly outperforming
the Total AIMCo Composite Benchmark.
Active management contributed $14 million of return above the AIMCo Composite Benchmark net of expenses in
fscal 2010/11. As the comparison to the 2010 fscal year shows, short-term active returns are inherently volatile.
Most of the positive value-added came from listed assets. This was offset by net negative results in overlays and unlisted
asset classes. Some of this is transitory, and refects the typical phenomenon that return expectations for unlisted assets
lag in the frst few years of their investment – the “J-curve effect”. This effect was signifcant in our portfolios, due to the
steep ramp-up in unlisted assets since 2005.
Most of the underperformance of unlisted assets should even out over time. part of the unlisted active loss is real, e.g., in
private equities, where a rush to fll target allocations resulted in heavy exposure to external underperforming fund vintages
invested near the peak of the last equity boom. Our decision to spend money today to reposition for lower costs and
better results tomorrow accentuated the loss.
Conscious efforts to add value by underweighting or overweighting asset classes marginally detracted from returns in
2010/11. However, this largely refects limitations in the current attribution software, with the shortfall being a mirror
image of positive effects in security selection.

14
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Money Market & Fixed Income
acTive pOrTfOliO ManaGeMenT
AIMCo is one of the largest fxed income managers in Canada.
We continue to monitor infationary environments both in Canada
and globally to look for value-adding strategies for this portfolio.
There are pockets of value in the debt market that should help
drive future performance.
AIMCo’s Fixed Income portfolio is structured to generate superior
risk-adjusted returns, while providing adequate liquidity for our
clients’ obligations.
$31
.
4 billion
AS At MARCh 31, 2011, the poRtFolio CoMpRiSed
A totAl MARket vAlue oF $31.4 Billion.
ANNUAl rEpOrT 2010/11
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AlBErTA INvESTMENT MANAgEMENT COrpOrATION

16
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
INvESTMENT pErFOrMANCE
Money Market & Fixed Income
AIMCo manages $31.4 billion in money market and fxed income assets. Approximately 33% represents pension and
endowment mandates, while 67% are short-term government funds.
Money Market and fixed income performance
As at March 31, 2011
ANNUAlIzED rETUrNS (%)
MArkET vAlUE AS AT MArCH 31, 2011 CAlENDAr YEAr rETUrNS (%)
TOTAl FUNDS – MONEY MArkET & FIxED INCOME ($ MIllIONS)
(1)
1 YEAr 2 YEAr 2010 2009
MOney MarKeT & fixed incOMe 31,432 4.4 5.0 5.7 4.7
Benchmark 3.6 2.8 4.5 2.2
MOney MarKeT 5,247 1.0 0.8 0.7 1.1
Benchmark 0.7 0.5 0.5 0.5
Universe bOnds 7,055 6.9 9.1 9.5 7.8
Benchmark 5.1 5.1 6.7 5.4
lOnG bOnds 4,665 8.2 9.3 13.0 6.2
Benchmark 8.1 5.8 12.1 1.2
seGreGaTed sHOrT-TerM fixed incOMe
(2)
10,424 3.4 3.6 3.6 5.0
seGreGaTed lOnG-TerM fixed incOMe
(3)
1,779 2.9 3.6 2.9 5.6
privaTe MOrTGaGes 2,262 6.7 7.1 10.4 3.6
Benchmark 5.1 5.1 6.7 5.4
(1)
Does not include Alberta Heritage Savings Trust Fund policy loans.
(2)
Segregated Short-Term includes investments held in the Sustainability, Credit Union Deposit Guarantee and Alberta Cancer Prevention Legacy portfolios.
(3)
Segregated Long-Term includes investments held in the Debt Retirement Account, Special Areas Long-Term Account and Agriculture Crop Insurance portfolios.
Money Market and fixed income ($31.4 billion)
Real Return Bonds
Fully Hedged
Other
Corporate
Federal
Provincial
Municipal
Asset Backed Securities
5
2.7
0
33.1
24
25.4
1.4
8.4
5.0%
REAL RETURN
BONDS
2.7%
FULLY HEDGED

33.1%
CORPORATE
24.0%
FEDERAL
8.4%
ASSET-BACKED
SECURITIES
1.4%
MUNICIPAL
25.4%
PROVINCIAL
SECTOR EXPOSURE
(As at March 31, 2011)
B
CCC
Other
AAA
AA
A
BBB
BB
0.1
0.1
2.6
38.2
35.1
21.1
2.1
0.6
0.1%
B
0.1%
CCC

2.6%
OTHER*
38.2%
AAA
0.6%
BB
2.1%
BBB
21.1%
A
35.1%
AA
RATINGS
(As at March 31, 2011)
*
No available ratings.
Money Market
Universe Bonds
Long Bonds
Segregated Short Term Fixed Income
Segregated Long Term Fixed Income
Mortgages
17
23
15
32
6
7
16%
MONEY MARKET
23%
UNIVERSE BONDS

15%
LONG BONDS
7%
PRIVATE
MORTGAGES
6%
SEGREGATED
SHORT-TERM
FIXED INCOME
33%
SEGREGATED
LONG-TERM
FIXED INCOME
ASSET MIX
(As at March 31, 2011)
Federal
Provincial
Municipal
Corporate
Asset-Backed Securities
Others*
27
31
1
27
9
5
27%
FEDERAL
31%
PROVINCIAL

1%
MUNICIPAL
5%
OTHERS*
9%
ASSET-BACKED
SECURITIES
27%
CORPORATE
SUMMARY OF FIXED INCOME HOLDINGS
(As at March 31, 2011)
*
Others include Canadian Private Mortgages, Canadian Private Debt Fund, Collateralized Loans, Fully Hedged Derivatives and Fixed Income Portable Alpha investments.
ANNUAl rEpOrT 2010/11
17
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
INvESTMENT pErFOrMANCE
MOney MarKeT
portfolio Strategy
AIMCo manages $5.2 billion in money market assets. The objective is capital preservation, liquidity and superior
risk-controlled return relative to benchmark.
performance
Absolute returns remain low but our money market funds outperformed the benchmark by 0.3%, through increased
exposure to credit and foating rate notes with superior returns relative to other money market securities. We often kept
duration shorter than benchmarks and benefted from Bank of Canada interest rate hikes in the summer of 2010.
fixed incOMe
portfolio Strategy
AIMCo manages $23.9 billion in fxed income assets. The portfolio provides liquidity and targets superior risk-adjusted
returns. Our active return strategy has four principal components: interest rate change anticipation, sector rotation, relative
value, and anticipating yield curve change.
performance
Our universe and long bond portfolios returned 6.9% and 8.2%, respectively, outperforming their benchmarks by
1.8% and 0.1%. Total returns have been unusually strong over the past two years as markets recovered from the credit
crisis of 2008, and Corporate and provincial credit spreads stabilized, despite relatively large new issuance in both sectors.
The portfolio remains overweight in high quality corporate bonds with attractive risk-adjusted returns, which should
beneft from continued economic and balance sheet improvements. We expect rates to rise at some point, causing
total bond returns to be low or negative. Since timing is uncertain, we are careful to fnd pockets of incremental return
to balance the cost of our cautious stand on duration.
MOrTGaGes
portfolio Strategy
AIMCo’s $2.3 billion mortgage portfolio meets client needs for stable monthly cash fows. We mostly hold high quality
frst Canadian mortgage loans, secured by offces, shopping centres, industrial properties, and by Canada Mortgage and
Housing Corporation (CMHC) insured multi-unit residential properties. We invest opportunistically in higher risk, higher
return Specialty Mortgages (mezzanine loans, bridge loans, B-notes, second mortgages). We pride ourselves on
committing quickly and closing effciently on larger loans. looking ahead, we are examining U.S. opportunities created
by credit market dislocation.
performance
The Mortgage portfolio returned 6.7%, 1.6% more than benchmark, mostly because of rapid spread contraction.
All of our loans are in good standing. The Canadian mortgage market remains robust. We committed $351 million
of new mortgage investments in nine separate transactions.

18
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
ANNUAl rEpOrT 2010/11
19
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Infation Sensitive
eiGHTH avenUe place
Eighth Avenue place, a 49-storey premier Calgary offce development,
is one of the frst multi-tenant, large offce buildings in Canada to be
awarded the pre-certifed leadership in Energy and Environmental
Design (lEED) platinum status, the highest environmental standard.
This certifcation recognizes high-performance green interiors that
are healthy, productive places to work; are less costly to operate and
maintain; and have a reduced environmental footprint.
Core quality properties, such as Eighth Avenue Place,
produce long run returns for our clients.
75%
oveR 75% oF AiMCo’s CoMMeRCiAl Building poRtFolio
iS CeRtiFied undeR An induStRY ReCognized
SuStAinABilitY pRogRAM.

20
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
INvESTMENT pErFOrMANCE
Infation Sensitive
Infation Sensitive assets are designed to have long-term, sustainable cash fows in sync with our clients’ obligations
and objectives.
infation sensitive performance
As at March 31, 2011
ANNUAlIzED rETUrNS
AIMCo TOTAl FUND COMpOSITE – MArkET vAlUE
(1)
AS AT MArCH 31, 2011 (%) CAlENDAr YEAr rETUrNS (%)
INFlATION SENSITIvE ($ MIllIONS) 1 YEAr 2 YEAr 2010 2009
inflaTiOn sensiTive 10,010 11.3 3.9 10.9 -2.9
Benchmark 12.2 9.8 11.0 6.2
real reTUrn bOnds 1,882 10.5 9.9 11.0 13.1
Benchmark 10.6 10.5 11.1 14.5
real esTaTe 5,580 12.5 1.9 12.8 -8.4
Benchmark 13.4 7.1 11.2 -0.1
privaTe infrasTrUcTUre 1,716 8.2 4.8 5.9 3.1
Benchmark 10.1 18.1 10.7 20.2
TiMberlands 559 9.6 1.0 7.2 -7.2
Benchmark 10.1 18.1 10.7 20.2
cOMMOdiTies 95 18.1 14.4 4.1 0.6
Benchmark 11.3 6.2 4.9 -3.0
(1)
Infation Sensitive Total includes $178 million from Private Debt and Loan, excluded from this table as it was established late in 2010 and did not have a full
year of return performance.
real reTUrn bOnds
The majority of AIMCo’s CpI-linked real return bonds are buy-and-hold government of Canada issues. On March 31, 2010,
all real return bond holdings were amalgamated into one pool to reduce management and trading costs and operational risk.
The portfolio returned 10.5%, underperforming its benchmark by 0.1%. AIMCo continues to monitor infationary
environments both in Canada and globally to look for value-adding strategies for this portfolio.
ANNUAl rEpOrT 2010/11
21
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
INvESTMENT pErFOrMANCE
real esTaTe
portfolio Strategy
The real Estate portfolio is expected to produce long run returns between those of stocks and bonds: capital values are
more stock-like and volatile, while income returns tend to stay in a stable band of 5% to 7% per annum.
AIMCo’s real Estate portfolio consists primarily of direct investments in high quality offce, retail, industrial and multi-unit
residential properties in Canada’s major centres. Canadian assets are held for their stable cash fow. We selectively invest
in higher returning opportunistic strategies.
participants in the Canadian market are competing very aggressively for the few investment opportunities available. We
therefore have been looking opportunistically for quality assets that require repositioning in dislocated U.S. and European
markets. We expect foreign assets to grow to one-third of total holdings over time, providing more diversifcation and
opportunities not available domestically.
Top five real estate investments
As at March 31, 2011
TOTAl
COMplEx SIzE OWNErSHIp
prOpErTY SECTOr lOCATION (MIllION SQ. FT.) (%)
place ville Marie Offce Montreal, pQ 2.77 50
Square One retail Mississauga, ON 1.86 50
Scarborough Town Centre retail Scarborough, ON 1.59 50
Yorkdale Shopping Centre retail Toronto, ON 1.52 50
Bow valley Square Offce Calgary, AB 1.47 50
real estate ($5.6 billion)
1.1
2.1
32.5
1.9
8.5
0.3
46.3
7.2
2.1%
U.S.
32.5%
ALBERTA

1.9%
BRITISH COLUMBIA
8.5%
FUND INVESTMENTS
1.1%
U.K.
7.2%
QUÉBEC

46.3%
ONTARIO
0.3%
EUROPE
GEOGRAPHIC EXPOSURE
(As at March 31, 2011)
6.3
8.4
39.9
11.3
3.8
30.3
SECTOR EXPOSURE
(As at March 31, 2011)
8.4%
INDUSTRIAL
39.9%
OFFICE

11.3%
FUND INVESTMENTS
6.3%
OTHER
30.3%
RETAIL

3.8%
RESIDENTIAL
performance
The real Estate portfolio returned 12.5%, underperforming its benchmark by 0.9%. The return includes a 12.0% return on
an average of $4.7 billion of Canadian assets and a 39.1% return on an average of $97.2 million in our foreign program.
Most of the Canadian asset appreciation refects strong demand for core real estate, which has lowered capitalization and
discount rates. Strong performance of foreign assets reverses large value declines taken at the end of 2009.
Notable transactions last year include a 50% interest in the $1.5 billion INg Industrial portfolio, $300 million of core
industrial properties in the Toronto and Edmonton markets, and the frst foreign investment for our pension clients
alongside our Endowment clients. We also placed a number of key investments in the U.S., U.k. and Canadian markets.

22
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
aUTOpisTa cenTral
Autopista Central, a 61-kilometre, six-lane highway running through
the centre of Santiago, Chile, connects suburban communities with the
downtown business district and the pan-American Highway.
The Autopista Central concession uses a unique tolling mechanism
based on traffc volume and road congestion, to provide a superior
alternative for motorists and a strategic corridor for trade and
commerce in Chile’s capital city. AIMCo owns 50% of Autopista and
believes that Chile’s concession framework demonstrates the country’s
commitment to the public–private partnership (ppp) market.
Infrastructure investments, such as Autopista, provide
diversified long-term inflation linked returns that match
long-term client liabilities.
$1
.
7 billion
AS At MARCh 31, 2011, the poRtFolio CoMpRiSed Seven
diReCt pRinCipAl inveStMentS And 13 Fund inveStMentS,
with A totAl MARket vAlue oF $1.7 Billion.
ANNUAl rEpOrT 2010/11
23
AlBErTA INvESTMENT MANAgEMENT COrpOrATION

24
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
INvESTMENT pErFOrMANCE
infrasTrUcTUre
portfolio Strategy
Infrastructure assets are intended to match the long duration real growth characteristics of infation-indexed pension
liabilities. AIMCo’s Infrastructure portfolio primarily consists of diversifed long-term equity positions in OECD-based assets
that are generally regulated or have long-term contracted revenues. As at March 31, 2011, the portfolio was comprised
of seven direct principal investments and 13 fund investments, with a total market value of $1.7 billion.
The recent global downturn is providing AIMCo with good opportunities. These include secondary transactions in
leveraged buy-outs that became distressed after 2008, sovereign assets being sold to cover fscal defcits, the growing
equity need in renewable energy, and large infrastructure projects in fast growing economies (e.g. Brazil, India and Chile).
In the coming years, we will target assets in the $100 million to $500 million range. We will continue to focus on “core”
brownfeld assets and develop partnerships with key strategic investors. Direct investments will grow to approximately
75% this year, from 50% a year ago. We estimate this shift has already saved our clients over $25 million in annual
management fees.
Top five infrastructure investments
As at March 31, 2011
COMpANY SECTOr lOCATION
puget Sound Energy Integrated Utilities U.S.
Frequency Infrastructure group Communication Australia/U.k.
First Wind power generation and Distribution U.S.
Compañía logística de Hidrocarburos (ClH) pipelines and Midstream Spain
Thames Water Water U.k.
infrastructure ($1.7 billion)
USA
United Kingdom
Europe
India
Canada
Australia
46.4
22.3
22
3
1.5
4.8
4.8%
AUSTRALIA
46.4%
U.S.

22.3%
U.K.
1.5%
CANADA
3.0%
INDIA
22.0%
EUROPE
GEOGRAPHIC EXPOSURE
(As at March 31, 2011)
Transportation / Logistics
Power & Gas Transmission & Dist
Pipelines & Midstream
Energy Production
Water Utilities
Waste Management
Integrated Utilities
Communication, Other
Contracted Power Generation
13.92
3.65
19
0.88
12.55
2.65
15.14
13.12
19.09
13.9%
TRANSPORTATION/
LOGISTICS
3.7%
POWER & GAS
TRANSMISSION &
DISTRIBUTION

19.0%
PIPELINES &
MIDSTREAM
0.9%
ENERGY PRODUCTION
12.5%
WATER UTILITIES
19.1%
CONTRACTED
POWER
GENERATION
13.1%
COMMUNICATION,
OTHER
15.1%
INTEGRATED
UTILITIES
2.6%
WASTE
MANAGEMENT
SECTOR EXPOSURE
(As at March 31, 2011)
performance
The AIMCo infrastructure portfolio returned 8.2% for the year, 1.9% less than its benchmark. valuations tend to lag
when listed markets do well. The rush to fll rising infrastructure allocations with third party fund investments prior to
2008 contributed to the underperformance, which was partially offset by good direct investment results.
During the year, we committed to invest USD $850 million in a 50% interest in Autopista Central, and acquired a
$200 million interest in Frequency Infrastructure group.
ANNUAl rEpOrT 2010/11
25
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
INvESTMENT pErFOrMANCE
TiMberland
portfolio Strategy
Timberland investments provide infation hedging and a long-term duration match with client liabilities. AIMCo’s Timberland
portfolio consists of four assets valued at $559 million.
In North America, the U.S. housing market collapse created a dislocation between timberland prices and the forest
product end market. In South America and other emerging markets, land pricing continues to be strong, driven by the
expansion of local forest industries and the growth in bio-fuel projects.
going forward, AIMCo will shift its geographic focus from North America to emerging markets in Central and South America,
Southeast Asia and Sub-Sahara Africa. We will likely hold less of the traditional North American species and more poplar,
willow and fast-growing eucalyptus. Our investment scope may also be expanded to include opportunities related to
bio-fuel for power generation, wood pellets and forestry carbon credits. We will also explore the benefts of investing in
agricultural lands.
performance
The AIMCo timberlands portfolio generated a 9.6% return, underperforming its benchmark by 0.5%.
In late 2010, AIMCo partnered with the Australia New zealand Forest Fund to acquire the timberland assets of great
Southern plantations for a total purchase price of AUD $415 million. We expect the great Southern plantations timberland
assets to evolve into a high quality institutional estate, encompassing timber plantations and mixed agricultural land uses.
Doing this transaction directly saved an estimated $3 million in transaction fees and $3 million in annual investment
management fees.

26
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
ANNUAl rEpOrT 2010/11
27
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Equities
precisiOn drillinG
precision Drilling Corporation is Canada’s largest energy services
company and a leading provider of oil and gas contract drilling services
in North America. precision’s commitment to sustainability permits
environmentally responsible operations in some of the world’s most
pristine and remote locations. precision’s systems have been designed
to ensure environmental standards are met or exceeded in all activities
and ongoing innovation in the development of new equipment further
reduces precision’s environmental footprint.
AIMCo’s public equities strategy optimizes return on risk and cost
across a number of dimensions including size, style, sector and
regional exposures.
$24
.
7 billion
AS At MARCh 31, 2011, the puBliC equitieS poRtFolio
CoMpRiSed A totAl MARket vAlue oF $24.7 Billion.

28
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
INvESTMENT pErFOrMANCE
Equities
AIMCo manages $26.7 billion in active portfolios, hedge funds, relationship investments, index funds and private equity.
equities performance
As at March 31, 2011
ANNUAlIzED rETUrNS
MArkET vAlUE AS AT MArCH 31, 2011 (%) CAlENDAr YEAr rETUrNS (%)
TOTAl AIMCo – EQUITIES ($ MIllIONS) 1 YEAr 2 YEAr 2010 2009
eQUiTies 26,705 12.1 21.1 9.8 20.1
Benchmark 11.6 19.6 9.6 19.0
canadian eQUiTy 6,076 18.9 31.4 18.5 35.6
Benchmark 20.4 30.8 17.6 35.1
GlObal eQUiTies 18,698 10.3 19.0 6.8 15.8
Benchmark 8.0 14.8 6.3 11.9
develOped eQUiTy 16,101 10.1 19.3 6.1 17.2
Benchmark 8.6 15.5 6.2 11.1
eMerGinG MarKeTs eQUiTy 894 14.6 30.7 14.4 55.8
Benchmark 13.4 28.6 13.0 52.6
HedGe fUnds 1,702 14.0 17.4 13.0 16.8
Benchmark 3.8 8.7 5.2 12.9
privaTe eQUiTy 1,930 9.2 2.5 8.7 -1.6
Benchmark 12.6 20.4 8.8 19.1
equities ($26.7 billion)
Public Equity
Private Equity
Hedge Funds
23,072
1,930
1,702
6%
HEDGE FUNDS
7%
PRIVATE EQUITY
87%
PUBLIC EQUITY
ASSET MIX
(As at March 31, 2011)
ANNUAl rEpOrT 2010/11
29
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
INvESTMENT pErFOrMANCE
pUblic eQUiTy
portfolio Strategy
We optimize return on risk and cost across a number of dimensions including size, style (e.g., value, growth), sector and
regional exposures. AIMCo continuously monitors and manages every client’s total equity risk, as opposed to product level
exposure. We use derivative overlays to modify overall risk.
Over the last two years, we restructured our portfolios to create a platform for generating higher and more consistent
value-added from shifting between strategies over a three- to fve-year market cycle.
The revamped public equities program consists of fewer higher conviction and higher quality positions and portfolios.
Capital is being allocated more effectively between these portfolios in a way that improves expected value-added at lower
levels of risk and emphasizes low correlation within the program.
Our $3.5 billion in relationship investments is committed to signifcant and high conviction investments in listed companies
to capture incremental return from business and fnancial improvements. We expect this portfolio to perform well over
rolling four-year periods, although annual value-added can be volatile. results have been favourable since its inception in
fscal 2010.
Top five public equity Holdings
As at March 31, 2011
COMpANY SECTOr lOCATION
viterra Materials Canada
precision Drilling Energy Canada
TNT Industrials Netherlands
Exxon Mobil Energy U.S.
Apple Information Technology U.S.
public equity ($24.7 billion)
Energy
Materials
Industrials
Consumer Discretionary
Consumer Staples
Health Care
Financials
Information Technology
Telecom
Utilities
Miscellaneous
14.6
9.8
12.6
7.4
11.6
6.2
21.2
8.7
4.1
2.8
1.0
14.6%
ENERGY
9.8%
MATERIALS
12.6%
INDUSTRIALS
7.4%
CONSUMER
DISCRETIONARY
4.1%
TELECOM
8.7%
INFORMATION
TECHNOLOGY
21.2%
FINANCIALS

6.2%
HEALTH CARE
11.6%
CONSUMER
STAPLES
SECTOR EXPOSURE
(As at March 31, 2011)
1.0%
MISCELLANEOUS
2.8%
UTILITIES
performance
The total AIMCo composite equity portfolio returned 12.1%, outperforming its benchmark by 0.5%. global equities
performed strongly in 2010/11, while the Canadian equity portfolio lagged slightly.
Whenever we can attract the necessary expertise we will manage funds internally, which is now saving us more than
$50 million a year in fees. We are strengthening our ties with some managers, based on our analysis of long-term
performance prospects.

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AlBErTA INvESTMENT MANAgEMENT COrpOrATION
INvESTMENT pErFOrMANCE
privaTe eQUiTy
portfolio Strategy
The private Equity program is designed to achieve better risk-adjusted returns than listed markets from “transformational”
activities at the company level, and by establishing better alignment between management and shareholders.
AIMCo inherited a globally diversifed private equity portfolio that had generally underperformed its peers and was operating
at a loss as at December 31, 2008. It was composed of approximately 70% funds, 12% fund-of-funds and 18%
co-investments, by net asset value. Since that time, a new private equity team has been formed to execute a restructuring
of the program. They have been transitioning it toward more opportunistic direct and co-investments, a cost-effcient
and fexible platform, while maintaining a smaller, select relationship-oriented fund portfolio.
given the illiquid nature of private equity, this transformation will occur over the next fve years. last year’s results have
been impacted by the $35 million cost of selling some underperforming fund investments to free up capital for direct
placements and save $16 million in annual fees.
In 2010/11, we also expanded the portfolio to target the growing number of pre-IpO start-ups that are trying to capitalize
on disruptive innovation in energy, materials and agriculture. Our investments in this area have been focused on clean and
renewable energy companies that are well along the path to grow to commercial scale.
Top five private equity investments
As at March 31, 2011
COMpANY SECTOr lOCATION
Chinook Energy Energy Canada
Tomkins limited Industrials U.k.
Bonanza Creek Energy U.S.
petro Tiger Energy Colombia
klemke Mining Industrials Canada
private equity ($1.9 billion)
Fund
Fund of Funds
Co-investments & Directs
46.6
8.5
44.8
46.6%
FUND
44.8%
CO-INVESTMENTS
& DIRECTS
8.5%
FUND OF FUNDS
STRUCTURE
(As at March 31, 2011)
Canada
USA
Europe
Asia/Emerging
31.83
43.74
12.79
11.63
31.8%
CANADA
12.8%
EUROPE
43.7%
UNITED STATES
11.7%
ASIA/EMERGING
GEOGRAPHIC EXPOSURE
(As at March 31, 2011)
ANNUAl rEpOrT 2010/11
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AlBErTA INvESTMENT MANAgEMENT COrpOrATION
INvESTMENT pErFOrMANCE
Undisclosed
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Telecom
Utilities
0.20
15.14
3.40
31.62
3.31
5.69
29.61
4.77
1.40
2.87
1.99
15.1%
CONSUMER
DISCRETIONARY
3.4%
CONSUMER STAPLES

31.6%
ENERGY
3.3%
FINANCIALS
5.7%
HEALTH CARE
2.0%
UTILITIES
2.9%
TELECOM
1.4%
MATERIALS

4.8%
INFORMATION
TECHNOLOGY
29.6%
INDUSTRIALS
SECTOR EXPOSURE
(As at March 31, 2011)
0.2%
UNDISCLOSED
performance
The total AIMCo composite private equity portfolio returned 9.2%, underperforming its benchmark by 3.4%.
Notable transactions in 2010 include AIMCo’s co-investment with Onex and the Cpp Investment Board to invest
USD $125 million in a take private transaction of Tomkins limited, a publicly listed U.k. corporation. We also invested
$220 million in pre-IpO ventures.
asseT pOlicy Overlays
global Tactical Asset Allocation (gTAA) overlays opportunistically exploit short- to mid-term fuctuations in the relative
attractiveness of the asset classes in which we invest, primarily using derivatives. last year, we had some relatively minor
positions, which on balance subtracted value. However, the bulk of what was measured as gTAA refected limitations in
the way our attribution system handles rebalancing and implementation costs, and in the way it divides total value added
into security selection and gTAA.
derivaTive insTrUMenTs
AIMCo uses derivatives to maintain index positions, for hedging purposes, and to implement policy asset allocation
changes in the Overlay pools. Derivatives used at AIMCo include:
• Bond and equity futures. These standardized exchange-listed contracts enable us to quickly create and dispose of
broad market exposures at far less cost and with reduced risk of market disruption.
• Forwards. These over-the-counter contracts, negotiated by two parties, are used to hedge foreign currency and
interest rate risk.
• Swaps. These over-the-counter contracts involve the exchange of two streams of cash fows and are used to obtain
or change portfolio exposures without having to directly sell or purchase the underlying asset.
• Options. These equity option contracts offer the right, but not the obligation, to buy or sell shares at a set price
during a set period. They enable us to adjust exposures on certain securities without directly purchasing or selling
the underlying security.

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ANNUAl rEpOrT 2010/11
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INvESTMENT pErFOrMANCE
The following were the most signifcant derivative programs during the year:
1. Equity index total return swaps (Index Swaps)
The portion of the public equity asset class that is allocated to the Core Indexing style uses equity index swaps to gain
exposure to Canadian and world equity indices. The benefts of using index swaps, instead of the actual stock purchases,
include immediate, effcient access to equity markets, and cost-effective implementation and liquidity.
A typical structure includes a swap where AIMCo receives a total return on an equity index (such as MSCI World), and
pays a short-term foating rate. The underlying cash is invested in a money market pool, which earns a short-term
foating rate.
2. Currency forwards
Currency forward contracts are utilized to manage AIMCo’s currency allocation relative to the benchmark allocation.
The portfolio managers for each asset class implement their desired active currency positioning relative to the benchmark,
within policy limits. To a smaller extent, currency forwards are utilized to take tactical currency positions.
Total aiMco – derivative positions
As at March 31, 2011
MArkET vAlUE
(1)
NOTIONAl vAlUE
(2)
DErIvATIvES ExpOSUrE ($ MIllIONS CAD) ($ MIllIONS CAD)
fUTUres/fOrWards $ 59 $ 16,506
Currency Fx Forward 78 13,789
Index Future -22 1,782
Bond Future 5 511
Currency Fx Spot -0 421
Commodity Future -0 3
sWaps -29 14,801
Index Swap -17 11,830
Asset Swap -29 1,852
Cross Currency Swap 58 1,044
Credit Default Swap -41 75
OpTiOns 168 4,026
Equity Option -4 2,128
Fx Option 19 1,551
Warrant 154 210
Fixed Income Option -2 136
right 0 1
Total Derivatives $ 199 $ 35,333
(1)
Market Value: The outstanding pay or receive obligation of the derivative contract due to changes in market levels.
(2)
Notional Value: The net economic exposure of the derivative.
ANNUAl rEpOrT 2010/11
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INvESTMENT pErFOrMANCE
cUrrency
generally, AIMCo does not hedge foreign currency exposure. There are exceptions (such as foreign real estate, infrastructure
and timberlands) where the assets are largely outside Canada, but have benchmarks that are Canadian-dollar hedged. From
time to time, we also use hedging and active currency management to opportunistically enhance returns.
Total aiMco – currency exposure
As at March 31, 2011
CANADIAN U.S. BrITISH JApANESE AUSTrAlIAN SWISS AIMCo
CUrrENCY DOllAr DOllAr EUrO pOUND YEN DOllAr FrANC OTHErS TOTAl
AIMCo actual (%) 73.4 13.5 3.5 2.2 2.1 1.4 0.7 3.1 100.0
prOxy vOTinG
AIMCo has a right and responsibility to thoughtfully vote on all proxies that we receive for shares owned on behalf of
our clients. We internally review proxy material for any Canadian company where AIMCo clients own a large stake and
undertake independent research on important governance issues. proxy voting is outsourced to a specialist advisory frm,
glass lewis & Co., which monitors shareholder meeting schedules and issues, and provides accountability to both AIMCo
and its clients. While glass lewis & Co. is a fully independent proxy voting service provider, AIMCo reserves the right to
override them.
secUriTy lendinG
Continuing challenges in credit markets during 2010 dictated prudence for AIMCo in our securities lending activities.
In 2008, a program was implemented to maintain a low tolerance for risk in lending, to primarily help with preservation
of capital. No losses have been incurred in the program over the past three years. As credit markets continue to improve,
AIMCo will consider opportunities with a moderately increased risk profle, to achieve higher returns.
respOnsible invesTinG
In 2010, AIMCo became a signatory to the United Nations principles for responsible Investing (UNprI). We believe that
responsible investing is a strategy that seeks to maximize both fnancial return and social good. We are developing a
policy that best balances the aims of both goals. responsible investing is 80% common sense and 20% further analysis
and research. The UNprI is driven by six guiding principles:
1. Incorporating environmental, social and corporate governance (ESg) issues into investment analysis and decision-
making processes.
2. Being active owners and incorporate ESg issues into our ownership policies and practices.
3. Seeking appropriate disclosures on ESg issues by the entities in which we invest.
4. promoting acceptance and implementation of the principles within the investment industry.
5. Working together to enhance our effectiveness in implementing the principles.
6. reporting on our activities and progress towards implementing the principles.

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Building an Innovative Operational platform
During 2011, we progressed on a number of initiatives designed to effectively staff the organization, increase our internal
asset management capability and establish improvements in our governance, risk and systems processes for the future.
We purposefully increased our headcount and made capital investments, both in the investment management and investment
operations areas. We believe this investment in people has and will continue to result in improvements in investment
returns, risk management and corporate governance, all directly related to AIMCo’s overall vision. Capital investments
were focused on system improvements and replacing underfunded legacy systems.
We focused attention on our investment portfolios: fostering collaboration among asset class teams in order to bring the best
opportunities to our clients, eliminating underperforming assets and funds, restructuring pools as required to respond to
regulation requirements of our clients. This is refected in our results as higher direct external costs for asset administration,
legal and other costs. Some of these costs will be one-time, but some refect the high cost of client regulation.
We also worked to deliver more direct deals, shifting assets under management (AUM) into more cost-effective internally
managed assets. The impact of this shift is already being seen as 2011 saw a $9.4 million reduction in external management
fees, and drove the percentage of total costs related to externally managed assets down to 68% from 74% last year. This
reduction also refects the impact of management’s earlier initiatives to amend external management compensation
arrangements. The cost-effectiveness of internally managed assets is best refected through a comparison of the cost of
performance. Based on accrued internal and external performance costs in 2011, cost of performance of an externally
managed asset is 5.3 times higher than that of an internally managed asset. AIMCo’s strategy is to continue to utilize
external managers to exploit opportunities where AIMCo does not have or is not in the process of developing internal
capabilities. AIMCo will continue to review the net returns after fees for all investment opportunities when determining
whether the investment is executed internally or externally.
peOple
The Operations side of AIMCo was starved for resources in the decade prior to AIMCo. We made it a priority to grow the
team and most of our hiring in 2009 and 2010 targeted Operations areas: Finance, Investment Operations, Systems and
Technology. The Operations areas now represent 55% of our staff at AIMCo. We also continue to look for people who
are excited about building an innovative operational platform to support investment decision-making.
prOcess
We inherited a signifcant number of manual processes, and have been streamlining them in 2009 and 2010. Over the next
two years, we are working on ensuring leading practices and transparency in our operating environment. To demonstrate
this, AIMCo is seeking an independent audit of its internal controls for Type II certifcation under Section 5970 of the
Canadian Institute of Chartered Accountants (CICA) Handbook. We expect our frst report in early 2012. Our IT organization
has also embarked on adopting CobiT (the IT control framework of the IT governance Institute). In 2010, we seamlessly
separated our IT infrastructure from the government of Alberta.
ANNUAl rEpOrT 2010/11
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AlBErTA INvESTMENT MANAgEMENT COrpOrATION
inTernal aUdiT
The Internal Audit team operates with a small internal group complemented by a co-source arrangement with an audit
frm. The group acts as the independent eyes and ears for the organization, providing expert advice on best practices and
remediation to improve systems, processes, methodologies and the skills of our people in operational areas.
TecHnOlOGy
All the technology systems we inherited in 2008 need to be upgraded or replaced over the next two years. We began this
process in 2009 and successfully replaced our derivatives management system in 2010. We believe in spending at least
50% of our time planning new technology implementations. In 2011, we will begin implementation of our new portfolio
management system and are investing in improved data management. We have established a disciplined approach to
project management and an IT change management group to build our innovative operational platform.
ManaGinG cOsTs
AIMCo operates on a cost-recovery basis. All costs are allocated back to clients on a fair and equitable basis.
Actual operating expenses for the year ended March 31, 2011 were $248.1 million (or 0.36% of invested assets) versus
$229.0 million (or 0.32% of invested assets) last year. Total operating expenses increased compared to last year as a result
of operational initiatives designed to improve our operational effectiveness. External investment management costs
(excluding performance fees) decreased from last year by $9.4 million to $116.7 million. These savings were redeployed in
initiatives aimed at improving investment returns, risk management and corporate governance, resulting in higher costs
related to internally managed assets.
AIMCo uses CEM Benchmarking Inc. for analyzing and comparing AIMCo’s costs. In 2008 and 2009, AIMCo showed a
lower cost relative to peer organizations.
BUIlDINg AN INNOvATIvE OpErATIONAl plATFOrM

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ANNUAl rEpOrT 2010/11
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people Strategies
AIMCo started 2008 with 138 professionals. In three years, we have grown to 260. Many are attracted by the unique
opportunity to be part of a nimble and entrepreneurial organization with a global $70 billion platform in Western Canada.
Because we are still in building mode, we put a lot of emphasis on internal talent development, as part of a more general
search for experienced people looking for the next big challenge in their career. We need people who feel at home in an
organization abuzz with the excitement that comes with the opportunity to work on key operations, IT and investment
initiatives, and being accountable for sizable projects.
Our organization is very results oriented. Every AIMCo employee from the CEO down has fve key goals designed to
maximize his/her personal contribution over the coming year in helping execute the business plan approved by our Board
of Directors. The current set of goals for the CEO and the organization refect that we are still building a management
organization to rank among the best, as envisioned when AIMCo was created:
1. Deliver $500 million value-added over market returns.
2. Become more effective at fnding investment opportunity by promoting collaboration across teams.
3. Improve communication with clients and government.
4. Improve our measures of risk and its management across the organization.
5. Strengthen the senior management team.
We are working on developing a base of future investment professionals in Alberta, in partnership with Alberta universities.
One initiative is the founding of the Alberta Finance Institute to fund graduate student research and seminars.
ANNUAl rEpOrT 2010/11
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AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Compensation Discussion and Analysis
Consistent with best practices, AIMCo has designed its executive compensation program to meet clearly defned principles
and objectives, which are articulated below. This section also describes AIMCo’s compensation program design, and
the total compensation package for each of AIMCo’s seven named executive positions identifed as the Corporation’s
key decision-makers.
execUTive cOMpensaTiOn principles
AIMCo’s executive compensation program is founded upon the following guiding principles:
• AIMCo must remain competitive in how it compensates employees;
• Compensation should be closely tied to performance;
• Incentive compensation plans and performance benchmarks should align closely with long-term stakeholder objectives.
AIMCo is striving to be among the best institutional investors in Canada, and competition for the talent required to
achieve that goal is ferce. AIMCo competes in the global market place with the world’s most sophisticated fnancial
services frms, including top investment and asset managers. Competitive compensation is essential in attracting and
retaining the most talented executives.
At the same time, AIMCo believes it is imperative that compensation be closely linked to individual performance, measured
relative to personal goals and objectives, as well as relevant, independent benchmarks for investment performance.
These strategic principles provide the foundation for a series of building blocks comprising AIMCo’s compensation program:
• AIMCo pays a competitive base salary, aligned with our comparator group in the Canadian pension fund
management industry.
• The annual and long-term incentive payments are designed to pay for persistent value-added performance above
AIMCo investment benchmarks, measured over rolling four-year cycles.
• Active management should deliver value over AIMCo benchmarks representing the listed proxy relevant to each asset class.
• For investment professionals, the value-added component is calculated at both the asset class and total fund levels,
while corporate services and operations staff are rewarded based on total fund performance.
• value-added calculations are net of all external and internal costs, and represent pure incremental return to our clients.
• Each year, employees articulate measurable personal goals and objectives in support of AIMCo’s business plan. part of
their annual incentive payment is based on how well they have achieved those goals.
cOMpOnenTs Of cOMpensaTiOn
Base Salary: AIMCo targets salaries and incentive percentages at the median for larger pension fund managers as
determined by Canadian investment management surveys conducted annually by the consulting frms William H. Mercer
and Towers Watson. Employees not part of the Collective Bargaining Unit who do not participate in the long-Term
Incentive plan are eligible for an annual merit salary increase effective January 1 of each year, depending upon individual
performance evaluations.
Annual incentive plan (Aip): Most employees not part of the Collective Bargaining Unit are entitled to base salary plus
an AIp payment. Employee AIp target percentages are set with reference to market data, and have a maximum value of
two times target at maximum personal, asset class and fund performance.

38
ANNUAl rEpOrT 2010/11
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COMpENSATION DISCUSSION AND ANAlYSIS
long-term incentive plan (ltip): The long-term incentive plan (lTIp) was frst introduced in 2009 to provide retention
and motivation awards for key investment, executive and operations leaders. Eligible employees must qualify for awards
yearly, based on performance and potential contribution to AIMCo over the longer term. lTIp is market based, and has a
maximum value of three times the award grants if maximum asset class and fund performance stretch targets are achieved.
lTIp grants can diminish to zero, depending upon asset class and fund performance over the relevant four-year period.
For each of 2009 through 2011 the stretch target has been $500 million.
AIp and lTIp comprise approximately three to fve cents for every dollar of value-added above performance benchmarks –
substantially less than performance fees paid to external managers.
Restricted Fund units (RFus): AIMCo grants certain employees rFUs to address the “gap” period between commencement
of employment and vesting of lTIp grants. The target amount for rFU grants is the median expected lTIp grant for that
employee. Actual rFU payments also vary with fund performance and could be without value at vesting.
pension: AIMCo participates in two defned beneft pension plans, the Management Employees pension plan and the public
Sector pension plan, which were grandfathered based on participation prior to AIMCo’s incorporation on January 1, 2008.
A new Defned Benefts Supplementary retirement plan has also been established to mirror the government of Alberta’s
Supplementary plan for the grandfathered employees who qualify. All new employees who are not part of the collective
bargaining unit are required to participate in a defned contribution pension plan and defned contribution supplementary
retirement plan sponsored by AIMCo.
Benefts: A broad range of market competitive benefts are provided to employees, including health and dental
coverage, short-term and long-term disability insurance, travel insurance, a learning and wellness beneft and subsidized
public transit.
Collective Bargaining unit employees: Negotiations have commenced with the Alberta Union of provincial Employees on
a new collective agreement for our unionized employees. The existing collective agreement expired on August 31, 2010.
cOMpensaTiOn resUlTs
Total compensation costs were $47.8 million for 2011, an increase of $9.2 million over fscal 2010, primarily due to our
expanded bench strength and improved investment performance.
This year, a special discretionary component within the Annual Incentive plan was approved by the Human resources
Compensation Committee to account for unique circumstances facing AIMCo:
• The Corporation underwent strategic restructuring in several illiquid asset classes, positioning the fund for better
long-term results.
• returns on these new assets tend to be negative in the short term (J-Curve effect).
• Signifcant work remains in building the risk, operations and investment platforms required of a world class
investment manager.
AIMCo’s Board will review annually whether the special discretionary component remains relevant to ensure existing
employees are equitably compensated for the change in investment strategies and operations initiatives.
The frst lTIp payouts, based on the previous four years asset class and total fund performance, will occur in 2013 for the
grants awarded in January 2009 (to vest on December 31, 2012). The accrued value of those frst payments is $3.7 million
as at March 31, 2011. The total accrued value of all lTIp grants is $6.7 million as at March 31, 2011. There were 73 lTIp
participants in 2011, with grants totaling $5.6 million maturing on December 31, 2014.
ANNUAl rEpOrT 2010/11
39
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
governance
AIMCo is committed to the highest standards of corporate governance. We believe that the policies, processes and
institutions that form a robust corporate governance framework are integral to the achievement of our goal to be among
the best institutional investment managers. AIMCo’s corporate governance framework is a set of policies and procedures
that dynamically adjust to facilitate a corporate culture of integrity and accountability in the pursuit of our goals.
bOard Of direcTOrs
The Board of Directors is responsible for overseeing management of the business and affairs of AIMCo. As part of this
mandate, the Board sets the strategic direction of the Corporation and oversees the development and implementation of
policies and procedures that govern the conduct of AIMCo’s business. In order to be appointed to the Board, a director
must have demonstrated experience in investment management, fnance, law, or served as an executive or director with
a large, publicly traded company. All directors are independent of management.
Directors are required by statute to act honestly and in good faith with a view to the best interests of the Corporation and
are required to exercise the care, diligence and skill that a reasonable and prudent person would exercise in comparable
circumstances. The Board of Directors meets six times every year with meetings scheduled one year in advance. Additional
meetings are arranged as required.
bOard cOMMiTTees
The Board of Directors has established four standing committees, which assist the Board in discharging its responsibilities:
• The Investment Committee oversees the investment activities and operations of AIMCo, which includes the receipt of
investment- and risk-related reports from management and the review and approval of certain investment-related
matters. The Investment Committee comprises all of the members of the Board of Directors with virginia Holmes
serving as Chair.
• The Audit Committee oversees fnancial reporting processes, development and implementation of internal controls,
conduct of the audit process, compliance with applicable laws and regulations, and implementation of AIMCo’s
whistleblower policy. The Audit Committee consists of Cathy Williams (Chair), george gosbee, ross grieve and
Daryl katz.
• The governance Committee oversees the policies, processes and procedures that comprise AIMCo’s corporate
governance framework, which includes overseeing the terms of reference for the Board of Directors and each Board
committee, and ensuring the effective operation of the Board of Directors. The governance Committee consists of
Andrea rosen (Chair), ross grieve and Mac van Wielingen.
• The Human resources and Compensation Committee oversees the human resources strategy and policies of the
Corporation, which includes ensuring that human resources policies are aligned with corporate objectives, reviewing
employee compensation and providing oversight on labour relations strategy. The Human resources and Compensation
Committee consists of Clive Beddoe (Chair), virginia Holmes, Andrea rosen and Mac van Wielingen.
At every meeting of the Board of Directors, the Board and all committees have in camera sessions, without
management attending.
bOard aTTendance and reMUneraTiOn
The Board held six regular meetings in fscal 2011: three in Edmonton, two in Calgary and one in Toronto, as well as two
special meetings conducted by teleconference. The Investment Committee held eight meetings, two of which were
conducted by teleconference.

40
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
gOvErNANCE
The table below shows each director’s attendance relative to the number of meetings held by the Board and committees
of which he or she was a member.
board attendance and remuneration
As at March 31, 2011
HUMAN
AUDIT rESOUrCES gOvErNANCE
BOArD OF DIrECTOrS COMMITTEE COMMITTEE COMMITTEE INvESTMENT COMMITTEE
rEgUlAr SpECIAl rEgUlAr SpECIAl
a. cHarles baillie
(1)
6/6 2/2 1/1 4/5 6/6 5/5 2/3
Chair of the Board
GeOrGe GOsbee 5/6 2/2 5/6 – 5/6 4/5 3/3
vice Chair of the Board
clive beddOe 5/6 2/2 – 5/6 – 4/5 3/3
Chair, Human resources Committee
david bisseTT
(2)
4/5 1/1 5/5 – 5/5 3/4 2/3
rOss Grieve
(3)
3/3 1/1 2/2 1/1 3/3 3/3 1/1
virGinia HOlMes 6/6 2/2 – 6/6 2
(4)
5/5 3/3
Chair, Investment Committee
daryl KaTZ 5/6 1/2 5/6 – – 4/5 3/3
franK p. layTOn, Q.c.
(5)
1/1 – – 0/1 1/1 1/1 –
andrea rOsen 5/6 2/2 – 6/6 6/6 4/5 2/3
Chair, governance Committee
Mac van WielinGen 5/6 2/2 – 4/6 4/6 4/5 2/3
caTHy WilliaMs 5/6 1/2 6/6 – – 5/5 2/3
Chair, Audit Committee
(1)
Charles Baillie, as Chair of the AIMCo Board of Directors, is an ex-offcio member of the Audit, Human Resources and Governance Committees and attends
Committee meetings regularly. As the Human Resources and Audit Committee meetings are held concurrently, Mr. Baillie generally alternates his attendance
between the two.
(2)
David Bissett retired from the Board effective December 31, 2010.
(3)
Ross Grieve was appointed to the Board on September 16, 2010 and attended his frst Board Committee meeting on September 23, 2010. Prior to his
offcial appointment to the Audit and Governance Committees on November 25, 2010, Mr. Grieve attended meetings of each Committee as a guest.
(4)
Virginia Holmes is not a regular member of the Governance Committee; she attends Committee meetings periodically as a guest.
(5)
Frank P. Layton, Q.C. resigned from the Board on April 23, 2010.
bOard reMUneraTiOn
Directors’ compensation is prescribed by provincial regulation. Board members receive annual retainers and meeting fees
as described in the table below. The Board Chair, vice Chair and committee Chairs receive additional retainers to
recognize the incremental responsibility associated with those positions. Directors have not been paid separate meeting
fees for Investment Committee meetings held the same day as regular Board meetings.
board fees
As at March 31, 2011
BOArD OF AUDIT HUMAN rESOUrCES gOvErNANCE INvESTMENT
DIrECTOrS COMMITTEE COMMITTEE COMMITTEE COMMITTEE
Base retainer (Annual) $ 20,000 $ – $ – $ – $ –
Chair retainer (Annual) 50,000 10,000 7,500 7,500 7,500
vice Chair retainer (Annual) 10,000 – – – –
Meeting Fees 1,000 1,000 1,000 1,000 1,000
ANNUAl rEpOrT 2010/11
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AlBErTA INvESTMENT MANAgEMENT COrpOrATION
gOvErNANCE
The following table shows payments made to directors based on individual attendance and prescribed fees as described in
the preceding table.
director remuneration
As at March 31, 2011
COMMITTEE
BASE CHAIr CHAIr MEETINg FEES
rETAINEr rETAINEr vICE CHAIr rETAINEr ($1,000 pEr TrAvEl
(ANNUAl) (ANNUAl) (ANNUAl) (ANNUAl) MEETINg)
(1)
rEMUNErATION TOTAl
a. cHarles baillie, Chair $ 20,000 $ 50,000 $ – $ – $ 19,000 $ 4,000 $ 93,000
GeOrGe GOsbee, vice Chair 20,000 – 10,000 4,298
(1)
20,000 1,000 55,298
clive beddOe 20,000 – – 7,500 15,000 1,000 43,500
david bisseTT
(2)
15,000 – – – 17,000 – 32,000
rOss Grieve
(3)
10,822 – – – 11,000 1,000 22,822
virGinia HOlMes 20,000 – – 7,500 20,000 10,000 57,500
daryl KaTZ 20,000 – – – 14,000 – 34,000
franK p. layTOn, Q.c.
(4)
1,192 – – – 2,000 – 3,192
andrea rOsen 20,000 – – 7,500 22,000 4,000 53,500
Mac van WielinGen 20,000 – – – 17,000 – 37,000
caTHy WilliaMs 20,000 – – 11,355
(5)
14,000 1,000 46,355
(1)
George Gosbee was Acting Chair of the Audit Committee until the appointment of Cathy Williams in September 2009. Adjustments were made to
Mr. Gosbee’s quarterly remuneration in June 2010 to account for payment of the Audit Committee Chair retainer while Mr. Gosbee held that position.
(2)
David Bissett retired from the AIMCo Board of Directors effective December 31, 2010.
(3)
Ross Grieve was appointed to the AIMCo Board on September 16, 2010 and was compensated on a per diem pro rata basis for the quarter ending
September 30, 2010.
(4)
Frank P. Layton, Q.C. resigned from the AIMCo Board of Directors effective April 23, 2010 and was compensated on a per diem pro rata basis for the quarter
ending June 30, 2010.
(5)
Adjustments were made to Cathy Williams’ quarterly remuneration in June 2010 to properly account for payment of the Audit Committee Chair retainer.
direcTOr OrienTaTiOn and cOnTinUinG edUcaTiOn
AIMCo provides new directors with a comprehensive orientation to the business and affairs of the Corporation. This
orientation is designed to inform new directors of their responsibilities as directors and provide them with the background
information required to make informed decisions and judgments respecting the issues that face the Board. New directors
are provided with comprehensive written materials and access to management for the purpose of acquiring the knowledge
required to discharge their responsibilities. Continuing director education is integral to achieving and maintaining a high
standard of corporate governance. Meetings of the Board of Directors include educational opportunities for directors to
enhance their knowledge of the Corporation and industry.
sTandards Of cOndUcT fOr direcTOrs
The Board of Directors has adopted various policies that outline acceptable standards of conduct for directors, including
the Director Trading policies and the Director Confict of Interest policy. A new Director Appointment policy for portfolio
Investments was implemented during the fscal year.
cOde Of cOndUcT
AIMCo has adopted a Code of Conduct and Ethical Standards, which contains principles and guidelines for ethical
behaviour at AIMCo. The Code applies to all AIMCo employees, including executive offcers. Compliance with the Code is
a condition of employment with AIMCo. AIMCo employees receive annual training regarding their obligations under the
Code. Additionally, AIMCo has established a whistleblower policy and reporting service, which provides all employees,
service providers and clients with the ability to confdentially report any failure to comply with the Code.

42
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Board of Directors
1
4
2
5
3
6
7
10
8 9
ANNUAl rEpOrT 2010/11
43
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
BOArD OF DIrECTOrS
1. a. cHarles baillie, O.c.
A. Charles Baillie, O.C., Chair, is the
former Chief Executive Offcer and
Chairman of the Board of Toronto-
Dominion Bank. Charles serves on the
boards of TElUS Corp., Canadian National
railway Co. and george Weston ltd.
Charles was appointed an Offcer of the
Order of Canada in 2006, inducted into
the Canadian Business Hall of Fame in
2007 and named Canadian International
CEO of the Year in 2000. He is Chancellor
Emeritus of Queen’s University and a
former Chair of the Canadian Council of
Chief Executives. Charles holds an MBA
from Harvard Business School.
2. GeOrGe f. J. GOsbee
george F.J. gosbee is the Chairman,
president and CEO of AltaCorp Capital
Inc. He is a board member of Chrysler
group llC in Detroit and co-founder
of MASS lBp. george is currently an
advisor on the government of Canada’s
Economic Advisory Council, a member of
the Canadian Council of Chief Executives,
a Director for the National Ballet School
Foundation and an Advisor to the School
of public policy at the University of
Calgary. He was honoured by the World
Economic Forum as one of 200 Young
global leaders, has received the Haskayne
School of Business’ Distinguished Alumni
Award and was awarded Entrepreneur
of the Year for the prairie region by
Ernst and Young.
3. clive J. beddOe
Clive J. Beddoe is a founding shareholder,
former president and Chief Executive
Offcer and current Chairman of the
Board of Directors of WestJet Airlines.
Clive is the recipient of numerous awards
and honours including induction in the
visionaries category to the Marketing
Hall of legends in 2009. In 2008 he was
named Distinguished Entrepreneur of the
Year by the University of victoria. Clive
holds an Honorary Doctorate of law from
the University of Calgary and from Wilfrid
laurier University.
4. david a. bisseTT
David A. Bissett is the founder of Bissett
and Associates Investment Management
ltd., which is now a division of Franklin
Templeton Investments. David has an llB
from Dalhousie University and is a CFA
Charterholder. He retired from the Board
on December 31, 2010.
5. rOss a. Grieve
ross A. grieve is the Chairman of the
Board of Directors and former Chief
Executive Offcer of pCl Construction
Holdings ltd. He also serves on the boards
of Melcor Developments, kingsett Capital
Fund, The Miller Thomson Foundation and
Junior Achievement. ross has received
numerous accolades for his business
leadership – most notably, Canada’s
Outstanding CEO of the Year Award in
2009. He has a BSc in civil engineering
from the University of Manitoba.
6. virGinia a. HOlMes
virginia A. Holmes is a former Chief
Executive Offcer of AxA Investment
Managers ltd. in london, U.k. virginia
currently serves on the boards of
JpMorgan Claverhouse Investment Trust
plc, Standard life Investments ltd. and
Universities Superannuation Scheme ltd.
virginia has a BA from Durham University.
7. daryl a. KaTZ
Daryl A. katz is the founder,
Chief Executive Offcer and Executive
Chairman of katz group. He is also a
member of the Canadian Council of
Chief Executives. Daryl has an llB
from the University of Alberta.
8. andrea s. rOsen
Andrea S. rosen is the former vice Chair
for TD Bank Financial group and president
of TD Canada Trust. Andrea serves on
the boards of Emera Inc. and Hiscox ltd.
Andrea has an llB from the Osgoode Hall
law School, an MBA from the Schulich
School of Business, York University, and a
BA magna cum laude from Yale University.
9. Mac H. van WielinGen
Mac H. van Wielingen is a founder,
Co-Chairman and Director of ArC
Financial Corp. and a founder and
Chairman of ArC resources ltd. Mac has
an HBA from the richard Ivey School of
Business and has studied post-graduate
economics at Harvard University.
10. caTHy l. WilliaMs
Cathy l. Williams is the former CFO of
Shell Canada ltd. Cathy is on the boards
of Tim Hortons Inc. and Enbridge Inc., and
is the Chair of the Human resources
and Compensation Committee at
Enbridge. She is also on the Advisory
Board of Queen’s School of Business.
Cathy has an llB from the University
of Western Ontario and an MBA from
Queen’s University.

44
ANNUAl rEpOrT 2010/11
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Management’s responsibility for Financial reporting
The Financial Statements of Alberta Investment Management Corporation (the Corporation) have been prepared by
management and approved by the Board of Directors. The Financial Statements have been prepared in accordance with
Canadian generally accepted accounting principles and within the framework of signifcant accounting policies summarized
in the notes to the Financial Statements. The fnancial information presented throughout this annual report is consistent
with the Financial Statements.
Management is responsible for the integrity and fairness of the Financial Statements and the fnancial information
contained in this annual report. The Financial Statements include certain amounts which, by necessity, are based on the
judgment and best estimates of management. In the opinion of management, the Financial Statements have been
properly prepared and present fairly the fnancial position, results of operations and cash fows of the Corporation.
The Board of Directors is responsible for overseeing management in the performance of its fnancial reporting duties. The
Board of Directors is assisted in discharging this responsibility by the Audit Committee, which consists of directors who
are neither offcers nor employees of the Corporation. The Audit Committee meets regularly with management and
external auditors to review the scope and fndings of audits and to satisfy itself that its responsibility has been properly
discharged. The Audit Committee has reviewed the Financial Statements and has recommended their approval by the
Board of Directors.
The Corporation has developed and implemented systems of internal control and supporting procedures which have been
designed to provide reasonable assurance that assets are protected; transactions are properly authorized, executed and
recorded; and the Financial Statements and accompanying fnancial information in this annual report are free from material
misstatement. The internal control framework includes the employee Code of Conduct and Ethical Standards, internal
compliance monitoring, the selection and training of qualifed employees, and the communication of policies and
guidelines throughout the organization.
The Offce of the Auditor general has examined the Financial Statements and prepared an Auditor’s report of its fndings,
which is presented in this annual report.

leO de bever Warren cabral, ca
Chief Executive Offcer Chief Financial Offcer
ANNUAl rEpOrT 2010/11
45
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Independent Auditor’s report
To the Shareholder of Alberta Investment Management Corporation
repOrT On THe financial sTaTeMenTs
I have audited the accompanying fnancial statements of Alberta Investment Management Corporation which comprise
the balance sheet as at March 31, 2011, and the statements of operations and cash fows for the year then ended, and a
summary of signifcant accounting policies and other explanatory information.
ManaGeMenT’s respOnsibiliTy fOr THe financial sTaTeMenTs
Management is responsible for the preparation and fair presentation of these fnancial statements in accordance with
Canadian generally accepted accounting principles, and for such internal control as management determines is necessary
to enable the preparation of fnancial statements that are free from material misstatement, whether due to fraud or error.
aUdiTOr’s respOnsibiliTy
My responsibility is to express an opinion on these fnancial statements based on my audit. I conducted my audit in
accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the fnancial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fnancial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the fnancial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the fnancial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the fnancial statements.
I believe that the audit evidence I have obtained is suffcient and appropriate to provide a basis for my audit opinion.
OpiniOn
In my opinion, the fnancial statements present fairly, in all material respects, the fnancial position of Alberta Investment
Management Corporation as at March 31, 2011, and the results of its operations and its cash fows for the year then
ended in accordance with Canadian generally accepted accounting principles.
Original signed by Merwan N. Saher, CA
aUdiTOr General
May 25, 2011
Edmonton, Alberta

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ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Balance Sheet
As at March 31, 2011 ($ thousands) 2011 2010
asseTs
Current assets
Cash and cash equivalents (Note 4) $ 19,607 $ 26,427
Accounts receivable 14,224 12,196
prepaid expenses 2,261 1,729
36,092 40,352
Capital assets (Note 5) 32,345 26,748
$ 68,437 $ 67,100
liabiliTies and sHareHOlder’s eQUiTy
Current liabilities
Accounts payable and accrued liabilities (Note 6) $ 18,952 $ 21,699
Accrued vacation and benefts 1,666 1,845
Advance from the province of Alberta (Note 7) 28,249 28,249
48,867 51,793
long-term employee benefts (Note 8) 9,873 4,894
Deferred lease inducement (Note 16) 6,050 6,766
64,790 63,453
Shareholder’s equity (Note 9)
Contributed surplus 3,647 3,647
3,647 3,647
$ 68,437 $ 67,100
Commitments (Note 16)
The accompanying notes are part of these fnancial statements.
Approved by the Board:

a. cHarles baillie caTHy WilliaMs
Board Chair Audit Committee Chair
ANNUAl rEpOrT 2010/11
47
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Statement of Operations
For the year ended March 31, 2011 ($ thousands) 2011 2011 2010
BUDgET acTUal ACTUAl
(UNAUDITED)
(NOTE 17)
revenUe
Cost recoveries $ 221,490 $ 247,835 $ 228,683
Interest income – 253 254
221,490 248,088 228,937
expenses
External investment costs (Note 10) 136,649 171,155 169,277
Salaries, wages and benefts 50,006 47,840 38,647
Contract and professional services 9,409 7,872 5,110
Administration 6,604 7,312 4,697
Data services and subscriptions 10,249 7,277 7,621
Amortization of capital assets 3,964 3,252 1,285
rent 4,009 3,140 2,233
Interest 600 240 67
221,490 248,088 228,937
Net income $ – $ – $ –
The accompanying notes are part of these fnancial statements.

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ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Statement of Cash Flows
For the year ended March 31, 2011 ($ thousands) 2011 2010
OperaTinG acTiviTies
Net income $ – $ –
Items not affecting cash
Amortization of capital assets 3,252 1,285
Amortization of deferred lease inducement (716) (304)
proceeds from deferred lease inducement – 6,108
long-term employee benefts 4,979 3,969
7,515 11,058
Changes in operating accounts (Note 11) (5,486) 12,587
2,029 23,645
invesTinG acTiviTies
Acquisition of capital assets (8,849) (20,779)
(Decrease) increase in cash for the year (6,820) 2,866
Cash and cash equivalents at beginning of year 26,427 23,561
Cash and cash equivalents at end of year $ 19,607 $ 26,427
sUppleMenTary infOrMaTiOn
Interest paid during the period $ 195 $ 67
The accompanying notes are part of these fnancial statements.
ANNUAl rEpOrT 2010/11
49
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Notes to the Financial Statements
For the year ended March 31, 2011 ($ thousands)
nOTe 1 aUTHOriTy
Alberta Investment Management Corporation (the Corporation) is an agent of the Crown in right of Alberta and operates
under the authority of Alberta Investment Management Corporations Act, Chapter A-26.5. Under the Act, the Corporation
is established as a Crown Corporation governed by a board of directors appointed by the lieutenant governor in Council.
The issued share of the Corporation is owned by the Crown, and accordingly the Corporation is exempt from federal and
provincial income taxes.
nOTe 2 naTUre Of OperaTiOns
The purpose of the Corporation is to provide investment management services in accordance with Alberta Investment
Management Corporations Act primarily to the province of Alberta and certain public sector pension plans. The
Corporation forms part of the Ministry of Finance and Enterprise for which the Minister of Finance and Enterprise is
responsible. The Corporation was formed January 1, 2008.
The Corporation has assets under administration of $68.8 billion, see Note 12. These assets are invested in segregated
investments owned by the client or aggregated in one or more pooled investment portfolios managed by the Corporation.
Some of these assets are managed by third-party investment managers selected and monitored by the Corporation in order
to achieve greater diversifcation, as well as to access external expertise and specialized knowledge. The segregated assets
and the assets within the pooled investment portfolios are not consolidated in the fnancial statements of the Corporation.
The Corporation makes investments on behalf of its clients and may also establish companies in which the province of
Alberta is the registered owner of the shares for the purpose of managing specifc investments. As the Corporation has no
benefcial interest in these entities, they are not consolidated in the Corporation’s fnancial statements.
The Corporation recovers all operating expenses and capital expenditures on a cost recovery basis. The Corporation’s
board of directors may approve recoveries greater than costs to maintain or increase the Corporation’s general reserve,
although they have not done so in the past.
nOTe 3 sUMMary Of siGnificanT accOUnTinG pOlicies
These fnancial statements have been prepared by management in accordance with Canadian generally accepted
accounting principles (gAAp) and include the following signifcant accounting policies:
a) Changes in Accounting policies
recent accounting pronouncements
In April 2010, the public Sector Accounting Board fnalized the requirements for government organizations classifed as
Other government Organizations (OgOs) to adopt either CICA public Sector Accounting Standards (pSAB) or
International Financial Accounting Standards. The Corporation is classifed by the government of Alberta’s Treasury Board
as an OgO and has elected to adopt pSAB. The Corporation will adopt pSAB for its annual fnancial statements ending
March 31, 2012, including comparative amounts on a pSAB basis for the year ending March 31, 2011. The Corporation
does not expect that adopting these standards will have a material impact on its fnancial statements.
b) Measurement Uncertainty
The preparation of fnancial statements in conformity with Canadian gAAp requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at
the date of the fnancial statements and the reported amounts of revenues and expenses during the period. Actual results
could differ from these estimates. Signifcant estimates include external investment management fees and long-term
employee beneft accruals.

50
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
NOTES TO THE FINANCIAl STATEMENTS
c) revenue recognition
All revenues are reported on the accrual basis of accounting.
Cost recovery revenue is recognized on the recovery of direct costs related to management of government funds, pension
plans and other investments, and on the recovery of indirect costs representing each government fund, pension plan and
pooled fund’s respective share of the Corporation’s operating costs. The indirect charges are allocated based on assets
under management and transaction volume. Cost recovery revenue is accrued and billed on a monthly basis as the related
costs are incurred and investment management services are provided.
Under Alberta Investment Management Corporations Act, the Corporation may establish and maintain one or more
reserve Funds with the ability to recover charges in excess of direct expenses.
d) Capital Assets
Capital assets are recorded at cost less accumulated amortization. Hardware and software development costs, including
labour and materials, and costs for design, development, testing and implementation are capitalized when the related
business systems are expected to be of continuing beneft to the Corporation. Amortization is calculated on a straight-line
basis over the following periods:
Computer systems hardware and software 5 years
Furniture and equipment 10 years
leasehold improvements lesser of the useful life of the asset and the term of the lease
e) Impairment of Capital Assets
The Corporation assesses the carrying values of capital assets for impairment when circumstances indicate the carrying
amounts of the assets may not be recoverable, using projected undiscounted cash fows. Factors that are considered and
which could lead to an impairment include signifcant changes in the manner of use of the asset or the overall strategy of
the Corporation.
An impairment charge, measured at an amount equal to the excess of the carrying value over fair value, is recognized
when the carrying amount of an asset exceeds the estimated undiscounted cash fows.
f) Employment Benefts
The Corporation participates in multi-employer defned beneft plans that meet the accounting requirements for
treatment as defned contribution plans. The Corporation also participates in defned contribution pension plans.
Employer contributions are expensed as incurred.
On January 1, 2010, the Corporation established a new Supplementary retirement plan (Srp) for those individuals
required to withdraw from the existing Supplementary retirement plan for public Service Managers. This pension plan is
accounted for using the projected-benefts method pro-rated on service to account for the cost of the defned beneft
pension plan. pension costs are based on management’s best estimate of expected plan investment performance,
discount rate, salary escalation, and retirement age of employees. The discount rate used to determine the accrued
beneft obligation is based on market interest rates, as at the measurement date, for high-quality debt instruments with
cash fows that match the timing and amount of expected beneft payments. plan assets are valued at fair value for the
purpose of calculating the expected return on plan assets. past service costs from plan amendments are amortized on a
straight-line basis over the average remaining service life of employees active at the date of amendments. Net actuarial
gains or losses over 10% of the greater of the beneft obligation and the fair value of plan assets are amortized on a
straight-line basis over the average remaining service life of active employees. Transitional obligations are amortized on a
straight-line basis over the average remaining service life of active employees. valuation allowances are calculated such
that accrued beneft assets are limited to amounts that can be realized in the future by applying any plan surplus against
future contributions.
ANNUAl rEpOrT 2010/11
51
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
NOTES TO THE FINANCIAl STATEMENTS
The Corporation provides retention incentives to employees through a long-Term Incentive plan (lTIp) and a restricted
Fund Unit plan (rFU). The value of these awards, which fuctuates over the vesting period based on achievement of
certain performance factors, is expensed as salaries, wages and benefts over the vesting period of the awards. The
liability for the awards is remeasured at each reporting period based on changes in the intrinsic values of the awards,
such that the cumulative amount of the liability will equal the expected payout at that date. Any gains or losses on
remeasurement are recorded in the statement of operations. For any forfeiture of the awards, the accrued compensation
cost will be adjusted by decreasing salaries, wages and benefts expense in the period of forfeiture.
g) Financial Instruments
The Corporation has made the following classifcation of its fnancial assets and liabilities:
• Cash is classifed as “Held for Trading” and is measured at fair value.
• Accounts receivable are classifed as “loans and receivables” and are measured at amortized cost using the effective
interest method, which approximates fair value due to their short term to maturity.
• Accounts payable and accrued liabilities, accrued vacation and benefts, and advance from the province of Alberta are
classifed as “Other Financial liabilities” and are measured at amortized cost using the effective interest method, which
approximates fair value due to their short term to maturity.
nOTe 4 casH and casH eQUivalenTs
As at March 31, 2011 ($ thousands) 2011 2010
Deposit in Consolidated Cash Investment Trust Fund $ 19,558 $ 25,933
Cash in U.S. bank account 49 494
$ 19,607 $ 26,427
The Consolidated Cash Investment Trust Fund is managed with the objective of providing competitive interest income to
depositors while maintaining appropriate security and liquidity of depositors’ capital. The portfolio comprises high quality
short-term and mid-term fxed income securities with a maximum term-to-maturity of three years. As at March 31, 2011,
securities held by the Fund have a time-weighted return of 1.1% per annum (2010 – 1.0% per annum).
nOTe 5 capiTal asseTs
As at March 31, 2011 ($ thousands) 2011 2010
accUMUlaTed neT bOOK NET BOOk
cOsT aMOrTiZaTiOn valUe vAlUE
Computer hardware and software $ 18,750 $ 10,851 $ 7,899 $ 3,818
Computer hardware and software
under development 10,017 – 10,017 8,315
leasehold improvements 11,995 1,268 10,727 10,876
Equipment 4,132 430 3,702 3,739
$ 44,894 $ 12,549 $ 32,345 $ 26,748
Included in capital assets is computer hardware and software of $10,017 (2010 – $8,315) that is under development and
not subject to amortization.

52
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
NOTES TO THE FINANCIAl STATEMENTS
nOTe 6 accOUnTs payable and accrUed liabiliTies
As at March 31, 2011 ($ thousands) 2011 2010
Annual incentive plan
(1)
$ 14,781 $ 9,827
Other accounts payable and accrued liabilities 4,171 11,872
$ 18,952 $ 21,699
(1)
Variable pay per the Corporation’s Annual Incentive Plan is accrued based on goal attainment for the calendar year and paid in the subsequent year.
Payments are tied to asset class and total fund value-added and include a component for achievement of annual individual objectives. The Chief Executive
Offcer may also make discretionary awards.
nOTe 7 advance frOM THe prOvince Of alberTa
pursuant to Order in Council 542/2007 and in accordance with a loan advance agreement, the Corporation received
advances on both January 1, 2008 and April 1, 2008 from the province of Alberta to fund operating and capital cost
requirements. As at March 31, 2011, the outstanding advance totalled $28,249 (2010 – $28,249).
The advance is a revolving demand credit facility up to a maximum of $30,000. The advance is repayable within six months
of demand by the province and is interest bearing at a rate equal to the province’s one-month borrowing rate. At March 31,
2011, the Corporation was in compliance with the terms of its revolving demand facility.
nOTe 8 lOnG-TerM eMplOyee benefiTs
As at March 31, 2011 ($ thousands) 2011 2010
long-term incentive plan $ 6,745 $ 2,009
restricted fund unit incentive plan 481 402
Unfunded net retirement obligation from Srp plan 2,647 2,483
$ 9,873 $ 4,894
a) long-Term Incentive plan
The Corporation provides retention incentives to employees through an lTIp and an rFU plan. The lTIp program promises
a deferred reward for generating superior average net incremental return from active management (“value-added”) over
a four-year period. Senior management and other key professionals of the Corporation receive lTIp grants on January 1 of
each year that vary in size with their level of responsibility and quality of past performance. The frst of these grants,
issued on January 1, 2009, will vest on December 31, 2012, with grants being issued annually thereafter. In the majority
of situations, employees must be actively working for the Corporation on the date of payment. lTIp grants have an initial
cash value of zero. When they mature after four years, they will pay between zero and three times the size of the grant.
The maximum amount will be paid if the average four-year value-added exceeds the average “stretch target” annually set
by the Board. For each of 2009 through 2011, the stretch target is $500,000.
The accrued lTIp liability as at March 31, 2011 of $6,745 (2010 – $2,099) refects the potential value of all lTIp, based on
actual results to that date from the date they were awarded.
ANNUAl rEpOrT 2010/11
53
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
NOTES TO THE FINANCIAl STATEMENTS
Information about total lTIp grants awarded and outstanding is as follows:
As at March 31, 2011 2011 2010
lTIp grants outstanding, beginning of year 9,460 4,453
granted 5,635 5,222
redeemed/forfeited (620) (215)
lTIp grants outstanding, end of year 14,475 9,460
The maximum potential obligation related to the lTIp as at March 31, 2011 was $43,425 (2010 – $28,380). Total expense
related to the lTIp for the year ended March 31, 2011 was $4,740 (2010 – $1,723) which was recorded in salaries, wages
and benefts.
b) restricted Fund Unit Incentive plan
The rFU program is a supplementary compensation plan based on a notional investment in the total assets under
administration, where the value fuctuates based on the total rate of return. Unlike the lTIp grants, rates of return relative
to benchmark do not impact the value of the rFU(s). rFU(s) have time horizons of one to three years for vesting
provisions. Employees must be on staff as of the payment date in order to be eligible to receive any vested payments.
The accrued rFU liability as at March 31, 2011 of $481 (2010 – $402) refects the potential value of all rFU(s), based on
actual results to that date from the date they were awarded.
Information about total rFU grants awarded and outstanding is as follows:
As at March 31, 2011 2011 2010
rFU grants outstanding, beginning of year 630 630
granted 15 –
redeemed/forfeited (140) –
rFU grants outstanding, end of year 505 630
Total expense related to the rFU plan for the year ended March 31, 2011 was $231 (2010 – $321), which was recorded
in salaries, wages and benefts.
c) Supplementary retirement plan
On January 1, 2010, the Corporation established a new Srp for those individuals required to withdraw from the existing
Supplementary retirement plan for public Service Managers. Based on an actuarial report dated January 1, 2010, the
Corporation assumed an opening net obligation of $2,306 representing past service costs of which $1,740 was expensed
during the year ended March 31, 2010 and $566 was expensed during the year ended March 31, 2009.

54
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
NOTES TO THE FINANCIAl STATEMENTS
Information about the Corporation’s Srp is as follows:
As at March 31, 2011 ($ thousands) 2011 2010
accrUed reTireMenT ObliGaTiOn
Beginning of year $ 2,483 $ 566
Current service cost 389 150
Interest cost 129 27
prior service costs arising from plan initiation – 1,740
Actuarial gain resulting from changes in actuarial assumptions (1,372) –
End of year 1,629 2,483
plan asseTs
Fair value, beginning of year – –
Employer contributions 177 –
Employee contributions 177 –
End of year 354 –
Funded status – plan defcit (1,275) (2,483)
Unamortized net actuarial gain (1,372) –
reported liability $ (2,647) $ (2,483)
Current service cost 389 150
Interest cost 129 27
prior service cost amortization – 1,740
less: employee contributions (177) –
Total Srp expense $ 341 $ 1,917
The measurement date for the plan assets and the accrued retirement obligation for the Corporation’s defned beneft pension
plan is March 31. Actuarial valuations are performed at least every three years to determine the actuarial present value of the
accrued retirement obligation. The next required actuarial valuation for funding purposes will be March 31, 2013.
Approximate asset allocations, by asset category, of the Corporation’s defned beneft pension plan assets were as follows:
As at March 31 2011
Equity securities 0%
Debt securities 0%
Other 100%
The following table presents key assumptions applicable to the Srp:
As at March 31, 2011 2011 2010
Annual discount rate 4.5% 4.5%
Annual salary increase – base 3.0% 3.5%
Annual salary increase – merit and promotion – 1.3%
Expected long-term return on plan assets 6.0% 6.0%
Infation rate 2.0% 2.5%
The reported liability of the Srp is signifcantly impacted by these assumptions. A 1% increase or decrease in the discount
rate would decrease or increase the reported liability by $449 as at March 31, 2011. A 1% increase or decrease in the
rate of salary increases would increase or decrease the reported liability by $1,214 as at March 31, 2011. A 1% increase
or decrease in the infation rate would increase or decrease the reported liability by $127 as at March 31, 2011.
ANNUAl rEpOrT 2010/11
55
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
NOTES TO THE FINANCIAl STATEMENTS
d) pension and Disability plans
The Corporation participates in two multi-employer public sector pension plans, the Management Employees pension plan
and the public Service pension plan, and two multi-employer long-Term Disability Income Continuance plans. The
Corporation also participates in a defned contribution pension plan and a defned contribution supplementary retirement
plan, established for employees hired after the formation of the Corporation on January 1, 2008.
The Corporation’s expense for the pension and disability plans was equivalent to the annual contributions of $2,758 for
the year ended March 31, 2011 (2010 – $2,562), which was recorded in salaries, wages and benefts.
At December 31, 2010, the Management Employees pension plan reported a defciency of $397,087 (2009 – $483,199)
and the public Service pension plan reported a defciency of $2,067,151 (2009 – $1,729,196).
nOTe 9 sHareHOlder’s eQUiTy
a) Share Capital
As at March 31, 2011 ($ thousands) 2011 2010
issUed and aUTHOriZed
province of Alberta – one share $ – $ –
b) Contributed Surplus
Contributed surplus of $3,647 (2010 – $3,647) represents equity received by the Department of Finance and Enterprise in
exchange for the transfer of the net book value of capital assets to the Corporation on January 1, 2008.
nOTe 10 exTernal invesTMenT cOsTs
For the year ended March 31, 2011 ($ thousands) 2011 2010
External investment management fees $ 116,726 $ 126,061
External performance fees 19,096 25,690
Asset administration, legal, and other expenses 35,333 17,526
$ 171,155 $ 169,277
External investment costs include external investment management and performance-based fees, as well as asset
administration, legal and other expenses incurred on behalf of the Corporation’s clients.
External investment management fees are based on a percentage of net assets under management at fair value and
committed amounts in the case of private equity and private income pools. Fees charged by external managers include
regular management fees as well as performance/incentive-based fees. These fees include signifcant estimates and
measurement uncertainty. The estimates are based upon specifed rates and commitment levels in the investment
management agreements. Actual results could differ from these estimates.
Asset administration, legal and other expenses are incurred directly by the Corporation’s investment portfolios and include
fees for the following services: asset custody and administration, audit, compliance and valuation, and investment
acquisition, disposition and structuring.

56
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
NOTES TO THE FINANCIAl STATEMENTS
nOTe 11 cHanGes in OperaTinG accOUnTs
For the year ended March 31, 2011 ($ thousands) 2011 2010
(Increase) decrease in accounts receivable $ (2,028) $ 128
Increase in prepaid expenses (532) (476)
(Decrease) increase in accounts payable and accrued liabilities (2,747) 13,047
Decrease in accrued vacation and benefts (179) (112)
$ (5,486) $ 12,587
nOTe 12 asseTs Under adMinisTraTiOn
The Corporation provides investment management services on behalf of certain province of Alberta endowment funds,
other government funds and certain public sector pension plans.
At March 31, 2011, assets under administration totalled approximately $68.8 billion (2010 – $70.7 billion), at market
value. These assets were administered on behalf of the following clients of the Corporation:
As at March 31, 2011 ($ thousands) 2011 2010
pension plans $ 31,436,597 $ 27,652,448
Ministry of Finance and Enterprise
general revenue and entity investment funds
(1)
14,267,483 20,713,819
Endowment funds (including the Alberta Heritage Savings Trust Fund) 18,332,498 17,133,500
Insurance-related funds 2,415,934 2,186,113
Other government ministry investment funds 2,348,256 3,042,063
$ 68,800,768 $ 70,727,943
(1)
General Revenue Fund Policy loans have been excluded, as they are managed by the Ministry of Finance and Enterprise.
The Corporation manages the majority of these investments through pooled investment funds. However, some
investments are managed by third party investment managers selected and monitored by the Corporation in order to
achieve greater diversifcation, access to external expertise and specialized knowledge. Investments are made in
accordance with the investment policies established and approved by the clients.
Investments administered by the Corporation were held in the following asset classes:
As at March 31, 2011 ($ thousands) 2011 2010
Fixed income
Fixed income
(1)
$ 29,318,810 $ 35,588,666
private mortgages 2,261,523 2,090,276
Infation sensitive
real estate 5,579,575 4,650,792
Infrastructure and timber 2,452,871 1,729,492
real return bonds and commodities 1,977,405 1,691,637
Equities
public equities and absolute return strategies 24,774,440 23,411,199
private equity 1,930,208 1,451,946
Overlays 505,936 113,935
$ 68,800,768 $70,727,943
(1)
General Revenue Fund Policy loans have been excluded as they are managed by the Ministry of Finance and Enterprise.
ANNUAl rEpOrT 2010/11
57
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
NOTES TO THE FINANCIAl STATEMENTS
nOTe 13 capiTal ManaGeMenT and financial insTrUMenTs
a) Capital Management
In the defnition of capital, the Corporation includes shareholder’s equity, advance from the province of Alberta and the
undrawn portion of the advance from the province of Alberta. The primary objective of capital management is to ensure
the Corporation has suffcient capital to support its business and achieve its strategic goals. The Corporation operates on
a cost-recovery basis and manages its capital to fund operating and capital costs to achieve its strategic plans and offset
cost-recovery timing differences. The Corporation is an agent of the Crown whose debt is fully guaranteed by the
province of Alberta, which has provided the Corporation with an advance to fund operating and capital costs.
b) Financial Instruments
The Corporation’s fnancial instruments are exposed to certain fnancial risks including credit risk, liquidity risk and market risk.
credit risk
Credit risk is the risk of fnancial loss to the Corporation if a customer or counterparty to a fnancial instrument fails to
meet its contractual obligation and arises principally from the Corporation’s accounts receivable from clients. The
Corporation’s clients are government funds, pension plans and other entities, and as such, credit risk exposure is limited.
liquidity risk
liquidity risk is the risk the Corporation will not be able to meet its fnancial obligations as they become due. The
Corporation is an agent of the Crown and has established a credit facility with the province of Alberta to fund operating
and capital requirements.
Market risk
Market risk is the risk that changes in market prices, such as foreign currency and interest rates, will affect the
Corporation’s earnings or the value of the fnancial instruments held. Foreign currency risk is the risk that the fair value of
future cash fows for fnancial instruments will fuctuate relative to the Canadian dollar. Interest rate risk is the risk that
future cash fows of a fnancial instrument will fuctuate because of changes in market interest rates. The Corporation
operates on a cost-recovery basis. Interest rate risk arises primarily from fuctuations in the interest rate on the advance
from the province of Alberta and foreign currency risk from fuctuations in the value of the Corporation’s U.S. dollar bank
account. As a result, exposure to foreign currency risk and interest rate risk is limited.
nOTe 14 relaTed parTy TransacTiOns
related parties are the government funds, pension plans and other entities for which the Corporation provides investment
management services. The Corporation had the following transactions with related parties recorded at the exchange
amount, which is the amount of consideration agreed upon between the related parties:
For the year ended March 31 ($ thousands) 2011 2010
revenUes
Cost recoveries $ 76,680 $ 59,406
expenses
Interest on advance from province of Alberta 195 65
Contracted services (rent and other) 561 1,610
756 1,675
asseTs
Accounts receivable 13,880 12,196
liabiliTies
Accounts payable 577 5,403
Advance from province of Alberta 28,249 28,249
$ 28,826 $ 33,652

58
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
NOTES TO THE FINANCIAl STATEMENTS
nOTe 15 salaries and benefiTs disclOsUre
The Corporation has a pay for performance strategy that exists to attract, retain and motivate top performers. Base
salaries are market driven and variable compensation programs reward consistent value-added performance.
The tables below present total compensation of the directors and senior management of the Corporation earned in the
year ended March 31, 2011 in accordance with Treasury Board directive 03/2007. This directive applies to all departments,
regulated funds, provincial agencies and Crown-controlled organizations.
For the year ended March 31 ($ thousands) 2011 2010
OTHer OTHer
base variable casH nOn-casH
salary
(1)
pay
(2)
benefiTs
(3)
benefiTs
(4)
TOTal TOTAl
Chairman of the Board
(5)
$ – $ – $ 93 $ – $ 93 $ 108
Board Members
(5)
– – 385 – 385 435
Chief Executive Offcer
(6)
500 900 18 70 1,488 1,069
Chief Investment Offcer
(7)
– – – – – 242
Chief Operating Offcer 265 466 55 41 827 633
Chief Financial Offcer 250 129 1 32 412 343
Chief risk Offcer 225 189 1 43 458 437
Senior vice president,
Fixed Income Investments 265 394 1 46 706 632
Senior vice president,
public Equities 265 466 – 39 770 647
(1)
Base Salary consists of all regular pensionable base pay earned.
(2)
Variable Pay comprises the Annual Incentive Plan and is accrued based on goal attainment for the calendar year end and paid in the subsequent period.
(3)
Other Cash Benefts consist of LTIP and RFU paid in the year, retainers, honoraria, lump sum payments, and any other direct cash remuneration.
(4)
Other Non-Cash Benefts consist of the Corporation’s share of all employee benefts and contributions or payments made on behalf of employees, including
pension, supplementary retirement plans, statutory contributions and health plan coverage.
(5)
Since December 2009, the Board has consisted of 10 independent members including the Chairman, whose compensation is disclosed separately. From July
2009 to November 2009, the Board consisted of 11 independent members including the Chairman and the Deputy Minister of Finance and Enterprise. The
Deputy Minister of Finance and Enterprise was a Board member and received no compensation from the Corporation during this time.
(6)
The Chief Executive Offcer also served in the role of Chief Investment Offcer from July 1, 2009.
(7)
The Chief Investment Offcer announced his retirement on March 31, 2009, and his last day with the Corporation was June 30, 2009.
ANNUAl rEpOrT 2010/11
59
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
NOTES TO THE FINANCIAl STATEMENTS
deferred long-Term incentive compensation
For the year ended March 31, 2011 ($ thousands) 2011 2010
lTip rfU
GranT GranT TOTal TOTAl
Chief Executive Offcer $ 500 $ – $ 500 $ 500
Chief Investment Offcer – – – 362
Chief Operating Offcer 260 – 260 239
Chief Financial Offcer – – – 100
Chief risk Offcer 169 – 169 169
Senior vice president, Fixed Income Investments 239 – 239 239
Senior vice president, public Equities 239 – 239 239
The Corporation provides retention incentives to employees through an lTIp and an rFU plan as described in Note 8. lTIp
and rFU grants have not been included in the Salaries and Benefts table, because they have an initial cash value of zero.
Employees must be on staff as of the payment date in order to be eligible to receive any vested payments. When lTIp
grants mature after four years, they will pay between zero and three times the size of the grant. The maximum amount
will be paid if the average four-year value-added exceeds the average “stretch target” annually set by the Board. For each
of the years 2009 through 2011, the stretch target is $500 million. rFU(s) have time horizons of one to three years for
vesting provisions. The value of the rFU grant fuctuates based on the total rate of return on assets under investment
from the date they were awarded.
nOTe 16 cOMMiTMenTs
The Corporation has entered into various agreements with minimum annual commitments for offce space and other
contracted services as follows:
($ thousands)
2012 $ 4,119
2013 4,271
2014 3,967
2015 3,588
2016 3,588
Thereafter 10,763
Total $ 30,296
The Corporation entered into a lease agreement for a new facility commencing January 1, 2010. This agreement is for
10 years, with two optional renewal periods of fve years each. As part of the lease agreement, the Corporation received
a lease inducement of $6,768. The inducement is recognized as a reduction in lease expense over the 10-year term of the
lease. The total deferred lease inducement as at March 31, 2011, which includes the Corporation’s offces in Toronto, is
$6,050 (2010 – $6,766).
pursuant to Order in Council 23/2008, the province of Alberta has made available a facility to access up to a maximum of
$200,000 for letters of credit for security purposes. This facility is utilized by the investment pools and at March 31, 2011,
the balance outstanding against the facility is $12,878 (2010 – $10,210).
nOTe 17 2010/11 bUdGeT
The Corporation’s budget for the year ended March 31, 2011, was approved by the Board of Directors on January 29, 2010.
nOTe 18 cOMparaTive fiGUres
Certain comparative fgures have been reclassifed to conform to the current year’s presentation.

60
ANNUAl rEpOrT 2010/11
AlBErTA INvESTMENT MANAgEMENT COrpOrATION
Investments Over $300 Million
corporate issuers
As at March 31, 2011 ($ millions) ASSETS UNDEr MANAgEMENT % OF TOTAl
royal Bank of Canada $ 1,258 1.8%
Toronto-Dominion Bank 1,232 1.8%
Bank of Montreal 1,104 1.6%
Bank of Nova Scotia 1,071 1.6%
Canadian Imperial Bank of Commerce 996 1.4%
viterra 739 1.1%
precision Drilling 697 1.0%
TNT 534 0.8%
National Bank of Canada 524 0.8%
gE Capital Canada Funding Co. 413 0.6%
Merrill lynch Financial Assets 349 0.5%
Exxon Mobil 335 0.5%
$ 9,252 13%
Government issuers
As at March 31, 2011 ($ millions) ASSETS UNDEr MANAgEMENT % OF TOTAl
government of Canada $ 4,365 6.3%
Canada Housing Trust No. 1 3,684 5.4%
province of Ontario 2,596 3.8%
province of Québec 1,476 2.1%
Canadian Mortgage pools 1,443 2.1%
province of British Columbia 712 1.0%
Financement-Québec 653 0.9%
province of New Brunswick 517 0.8%
province of Nova Scotia 426 0.6%
CDp Financial (Caisse de dépôt et placement du Québec) 410 0.6%
U.S. Department of the Treasury 370 0.5%
$ 16,651 24%
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leO de bever
Chief Executive Offcer and
Chief Investment Offcer
JaGdeep sinGH bacHHer
Chief Operating Offcer
Warren cabral
Chief Financial Offcer
carOle HUnT, Q.c.
Chief legal Counsel and
Corporate Secretary
JOHn OsbOrne
Chief risk Offcer
lOrne r. andersOn
Senior vice president, Human resources
a.J. (pine) pienaar
Senior vice president, Client relations
MicHael baKer
Senior vice president,
Investment Operations
MicHeal dal bellO
Senior vice president, real Estate
GeOrGe enGMan
Senior vice president, private Equity
brian GibsOn
Senior vice president, public Equities
dale MacMasTer
Senior vice president,
Fixed Income Investments
rOberT MaH
Senior vice president,
Infrastructure and Timber Investments
dOUGlas p. sTraTTOn
Senior vice president, Fund Management
Giselle branGeT
vice president, Active Investments
sally cHan
vice president, Internal Audit
JacQUelyn cOlville
vice president, Finance and Controller
cHarlie eiGl
vice president, Investment Administration
arTHUr r. GUiMaraes
vice president, Investment Operations
andreW W. HUnTley
vice president, Mortgages
JaMes ridOUT
vice president, private Equity
edWard riecKelMan
vice president, private Equity
sTepHen G. sTeWarT
vice president, private Debt
david sTyles
vice president, relationship Investments
Jean david TreMblay-freneTTe
vice president,
global Tactical Asset Allocation
saMeer verMa
vice president, New Operations Initiatives
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From responsible
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Alberta Investment
Management Corporation
Head Office
1100 – 10830 Jasper Avenue NW
Edmonton, Alberta T5J 2B3 Canada
Telephone: 1-780-392-3600
TOrOnTO Office
70 York Street, Suite 1700
Toronto, Ontario M5J 1S9 Canada
Telephone: 1-416-304-1160
www.aimco.alberta.ca
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AIMCo’s services to clients include investment management, investment policy strategy implementation, performance measurement and reporting, asset administration and compliance.

AIMCo oversees and manages the retirement income needs of over 300,000 active and retired public sector employees. Annually, these funds pay out more than $1 billion in pension payments, refunds and transfers to other plans.

Pensions

The Alberta Heritage Endowment Funds and other endowments make up the largest system of its kind in Canada. In the 2010/11 fiscal year, the Heritage Fund earned over $1 billion under AIMCo’s management.

Endowments

Client Inve Polici

The Alberta short-term government Funds AIMCo manages are used for priorities as diverse as health care, education, infrastructure and social programs. Withdrawals to fund these government programs reduced AIMCo’s assets under management.

Government Funds

Cost Efficien

Our clients are responsible for developing their long-term investment policy. Upon request, we assist with asset-liability modelling, benchmark proxy selection, investment policy statement development, and assessing capacity for risk.

Fixed Income
Real Estate

AIMCo

rastructure Inf & Timber Listed Equit ies

ncies

Private Equity

~ $70 billion

estment ies

we are putting in place the foundation necessary for success.StRAight FoRwARd this phrase best describes our unwavering commitment and determination to build an organization that can achieve consistently superior financial results for our clients. AiMCo targets long-term results. our efforts to achieve better than market returns are paying off in listed assets. guided by a strong Board. Revamping our systems and achieving best practice for operational effectiveness will take another two years. but we still have challenges restructuring some legacy unlisted assets. Table Of cOnTenTs About AIMCo (inside fold) Investment Highlights 2 Assets Under Management 3 Message from the Chair 4 Q+A with the CEO 5 Executive Management Team 8 Managing Investment risk 10 Investment performance 11 Building an Innovative Operational platform 34 people Strategies 36 Compensation Discussion and Analysis 37 governance 39 Board of Directors 42 Management’s responsibility for Financial reporting 44 Independent Auditor’s report 45 Financial Statements and Notes 46 Investments Over $300 Million 60 Senior Management Team (inside back cover) . in a few years it should be clear we are achieving our goals. the investment organization was under-resourced. with $70 billion of assets. we have made the most of AiMCo’s freedom to attract and retain the best. AiMCo was created in 2008 on the premise that. we had the critical mass to create an investment organization that could rank among the best. our starting point was not ideal.

returns in listed assets are mostly unpredictable in the short run. Investment strategies must respond to changing conditions good investment ideas don’t last forever. AIMCo’s comparative advantages are cash and patience Many investment opportunities are only accessible to investors with a long investment horizon. In certain circumstances. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 1 . Superior security. With about $70 billion under management. superior. but extremely high market valuations tend to be followed by an extended period of poor future returns. We are responsible for the financial assets of 26 clients: a diverse group of Alberta public sector pension plans. bonds and inflation sensitive assets. The remaining government of Alberta clients ($20 billion) are invested in money market and short-term bonds. riskier assets like stocks provide much higher long-term returns to compensate for the greater variability of short-term returns and the extreme downside in years such as 2008. AIMCo’s Balanced Funds clients ($50 billion) are invested in equities. so AIMCo can earn a premium return for our clients by committing sizeable investments for long periods of time. but historically have low long-term return on investment. risk must be deployed where and when we expect it to earn the highest return. We invest in cost-effective internal management We employ the right people with the right expertise in Investments and Operations to manage the corporation in the most cost-effective manner. we create portfolios that reflect our clients’ chosen risk and return profiles.About AIMCo WHaT We dO Alberta Investment Management Corporation (AIMCo) is one of Canada’s largest institutional investment managers. Most of the capital we manage will not be needed for many years. endowment funds and certain assets for the government of Alberta. while also providing diversification benefits. AIMCo’s size allows it to access active return strategies to generate superior long-term risk-adjusted returns. AIMCo will work with other shareholders to promote best practice in corporate governance. HOW We plan TO earn sUperiOr reTUrns Taking risk has a persistent long-term reward Bonds provide high security of principal if held to maturity. Active management is a critical source of returns The bulk of AIMCo’s returns will always come from portfolio exposure to listed markets. Good governance has its own return Well-governed companies tend to provide superior investment returns. Strong operational and risk management support can avoid costly investment implementation errors. Our mandate is to deliver consistent. sector and country selection can add value. and attractive returns accrue to those who identify new opportunities early. AIMCo’s goal is to improve on the passive returns our clients could achieve without us The simplest way to deploy risk is through index investments in a broad range of listed markets. long-term risk-adjusted returns for our clients. That makes risk our scarce resource. We manage risk for maximum return Our clients have limited tolerance for the capital loss that can result from taking risk.

2 10.03 2 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION .60 0 -2 60 40 -4 -6 -8 20 0 2009 2010 2011 2009 2010 2011 asseT Mix As at March 31.38 -3.1 2.2 1.38 -0.35 0.7 68.90 -0.35 0.41 -2.2 8.0 2011 17.17 0.90 3.4 23.17 -3. 2011 AIMCo TOTAL BALANCED FUNDS (Pensions & Endowments) GOVERNMENT FUNDS 1% OVERLAYS 1% OVERLAYS 2% INFLATION SENSITIVE 14% INFLATION SENSITIVE 19% INFLATION SENSITIVE 98% MONEY MARKET & FIXED INCOME 46% MONEY MARKET & FIXED INCOME 26% MONEY MARKET & FIXED INCOME 39% EQUITIES 54% EQUITIES invesTMenT perfOrMance For the years ended March 31 (%) I Actual I AIMCo Total Benchmark 80 1 Endowments) BALANCED FUNDS (Pensions & 0 20 15 AIMCo TOTAL 60 20 15 10 GOVERNMENT FUNDS 20 15 10 40 17.57 0.0 8.0 2010 -7.8 -1 -2 12.5 29.Investment Highlights asseTs Under ManaGeMenT For the years ended March 31 ($ billions) I Pensions I Endowments I Government Funds AIMCo ANNUAL ASSETS UNDER MANAGEMENT 80 ANNUAL NET CONTRIBUTIONS 2 68.41 -7.60 -0.4 18.8 17.57 -2.8 0.6 0 31.5 -4 5 5 5 0 3.3 -3 10 10.73 0.8 27.5 2011 201016.73 Endowments -0.03 -0.9 70.5 2010 18.3 25.9 0 2011 Govt Funds Pensions -0.0 20 0 11.

Assets Under Management
Total assets under management did not change much this year. Drawdowns in the Sustainability Fund to fund government programs were slightly larger than the growth in balanced funds.
By client type as at March 31, 2011

AIMCo ASSET ClASS MArkET vAlUE ($ MIllIONS) aiMco TOTal MONEY MArkET & FIxED INCOME INFlATION SENSITIvE EQUITIES OvErlAYS

$ $

68,801 49,950 18,518 15,466 1,344 769 754 138 48 31,432 18,116 6,339 2,626 2,586 1,522 99 85 60

46% 26% 26% 26% 27% 27% 28% 28% 28% 27% 30% 23% 22% 17% 26% 43% 46% 38% 98% 100% 100% 100% 100% 100% 100% 100% 86% 70% 100% 100% 100% 100% 72%

14% 19% 18% 19% 18% 18% 15% 11% 10% 20% 23% 15% 19% 18% 15% 7% 5% 11% 2% 0% 0% 0% 0% 0% 0% 0% 14% 30% 0% 0% 0% 0% 0%

39% 53% 55% 55% 54% 55% 56% 60% 61% 53% 47% 61% 58% 64% 58% 50% 49% 50% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 28%

1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 0% 0% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Balanced Funds
endOWMenT fUnds

Heritage Savings Trust Heritage Medical research Heritage for Science and Engineering Heritage Scholarship Trust long-Term Disability Bargaining Unit long-Term Disability Management
pensiOn plans

local Authorities public Service Management Employees Universities Academic Special Forces Judges Judges Supplementary retirement Management Supplementary retirement government Funds
sHOrT-TerM GOvernMenT fUnds

$

18,850 15,916 11,396 1,314 2,310 880 10 5 2,935 1,359 871 498 151 27 29

Sustainability general revenue Money Market Depositors(1) Debt retirement Account Alberta Municipal Services Corporation Management Closed pension Membership
special pUrpOse GOvernMenT fUnds

Workers’ Compensation Board Agriculture Crop Insurance Alberta Cancer prevention legacy Credit Union Deposit guarantee Special Areas long-Term Account Alberta Securities Commission
(1) Includes

various government agencies, organizations, Crown corporations and other accounts.

ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION

3

Message from the Chair
We are building AIMCo on the premise that a conscientiously governed and disciplined organization that can attract and retain highly talented investment expertise will, over time, produce superior investment results. The importance of superior investment returns is brought home by the fact that the contributions required to finance a pension can be reduced by roughly 25% for every 1% in sustained incremental return. We have now completed our third year as AIMCo. The first year was overshadowed by the financial panic, but we utilized that and the two following years to put in place the controls and systems without which we could not aspire to investment excellence. That challenge proved greater than we had initially expected but we believe AIMCo has made significant strides in that regard. For example, we have implemented sound risk management and measurement controls and we are well on our way to certification under Section 5970 of the Canadian Institute of Chartered Accountants Handbook.

on behalf of the Board of AiMCo, i am pleased to report another year of progress in our quest to build a superior Alberta-based investment manager. For the fiscal year ended March 31, 2011, AiMCo achieved an aggregate net return of 8.2% on the $68.8 billion of assets we manage for pensions, endowments and short-term government funds, matching the net market return on investment policy.

AIMCo’s predecessor company, lacking the necessary internal systems and operating infrastructure, relied extensively on external managers. That is an expensive option as evidenced by historical budgets in which the 20% of the assets managed externally accounted for approximately 80% of the expenses. Since AIMCo’s launch, management has concentrated on enhancing our risk management and operational controls, and on strengthening the internal talent pool both through development and recruitment. As a result, we have been able to meaningfully increase the percentage of assets managed internally and use the savings to finance operational improvements. We participated in a number of innovative transactions across the investment spectrum this past year, investments which should prove rewarding. While it takes years to build an outstanding investment manager and investment returns are still constrained by restructuring and start-up costs, we are optimistic that these steps will lead to ever more attractive returns in future years. We are committed to working collaboratively with our clients to understand their challenges and implement effective solutions within their prescribed risk limits. We shall also be devoting additional resources to improving the effectiveness of client communication and reporting. In closing we would like to acknowledge the significant contributions of David Bissett and Frank layton, Q.C. who retired from the Board this past year. Their insight and experience assisted in shaping AIMCo’s strategic direction as a Crown Corporation. We are pleased to welcome two new Board members. ross grieve, Chairman of pCl Construction Holdings ltd., joined in December 2010 and kurt Winkelmann, Head of risk & Analytical research of MSCI Inc. and a former partner of goldman Sachs, in April 2011. Their business acumen and expertise will be an invaluable asset to AIMCo. We would also like to acknowledge and thank the government of Alberta, and particularly, the Department of Finance and Enterprise for their unstinting support. Finally, we thank leo de Bever and his team for their stewardship and unwavering commitment to creating an investment manager of which Albertans will be proud.

a. cHarles baillie, O.c.
Chair

4

ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION

Q+A with the CEO

Q: how did AiMCo perform
in 2010/11?

a: AIMCo’s absolute fiscal year return of 10.3% on pensions and endowment
assets, and 8.2% on total assets including short-term government funds mostly reflects above average market returns. Active management returns are inherently volatile. Their contribution was negligible this year, but did add $750 million over the last two fiscal years. Most of our challenges were in unlisted assets; valuations often lag when listed markets do well, as they have done recently. restructuring costs for underperforming historical private equity assets detracted about 0.2%. rapid growth in recent years to many unlisted categories gave rise to usual lags in return relative to listed benchmarks.

Q: how did AiMCo do
relative to its peers?

a: peer comparisons are of limited value. The different circumstances and preferences of organizations are reflected in their policy asset mix and risk limits. Our clients’ policy to keep foreign currency exposure mostly unhedged did cost a few percentage points last year, but hedging makes little long-term difference. Some peers had higher unlisted returns reflecting good decisions often made a decade earlier; excluding real estate, our unlisted assets are of more recent vintage. AIMCo is prohibited from specific types of leverage, which some peers elsewhere used to great advantage in 2010.

ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION

5

e. a: Convincing everyone to retain a long-term focus and not be myopic about quarterly or even annual results. we will not let optics stand in the way of earning good returns. but what about the downside in years like 2008? a: leverage does not always increase risk of loss. why not stay closer to home? a: Opportunities do not come in neat geographical packages.. or there was no tomorrow. Asia may slow down in the near term. not helping the provincial economy diversify). but high quality companies with a strong market position could offer better long-term return on risk than fixed income. borrowing to buy stocks does indeed increase total risk: it improves return when asset prices are rising. because we have had less than a century of practice. but 2008 showed the downside when prices fall. Because of strong global long-term demand for resources and agricultural products. many good future opportunities may be Alberta-related. The Chilean toll road acquisition and the Australian timberland purchase reflect our increased capacity to seek out attractively priced assets wherever they are located. Q: leverage did pay off last year.. We did acquire a very attractive Canadian industrial real estate portfolio. However.Q+A WITH THE CEO Economies of scale AiMCo ClientS get the BeneFit oF lARge eConoMieS oF SCAle in ASSet MAnAgeMent. as governments face rising funding pressures. Q: You are going farther afield to buy unlisted assets. What looks like the biggest energy technology revolution in 100 years will create opportunities both in the conventional and alternative sectors of that market. geographically. I have been criticized for focusing too much on Alberta (i. looking just at assets. Over most of human history. Stocks may be at risk near-term. Q: Are you considering any investments in Alberta to support the local economy? Q: Are there any big changes in the attractiveness of various asset classes? Q: what do you see as your biggest challenge in the years ahead? 6 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION . risks and opportunities in pension programs. neglecting global portfolio diversification). When one comes along. and we made a number of investments in Canadian companies seeking to strengthen their global position. pension funding risk arises when assets do not resemble the nominal and real return bonds that best match nominal and real pension promises. we see rough weather ahead. paradoxically. Opportunities in infrastructure may also increase. but we still believe that Western Canada’s resources will remain attractive. proper use of leverage can reduce asset/liability pension funding risk.e. a: After 30 years of phenomenal bond returns reflecting a drop in interest rates from 20% to 2%. but also for not focusing enough on Alberta (i. Most people have trouble evaluating long-term costs. Our instinctive response to poor results today is to be wary of pots of gold at the end of long run rainbows. The principal of most bonds may be safe. a: AIMCo has a mandate to focus on risk-adjusted return. Borrowing to buy more of those assets can lower funding risk. you had to be good at surviving today. That very reaction could be what is keeping long-term return on risk higher than it should be. but buys a lot less on maturity. Alberta assets make up 8% of the total portfolio.

We have now attracted most of the investment professionals needed to get us to “superior” return on risk. That is a huge accomplishment in itself. Most IT projects take 18 months to put in place. a: I wish I had a magic wand to “fast forward” the work in progress by a few years. $30 million AiMCo hAS Added $30 Million peR YeAR to the AlBeRtA eConoMY. without proper operations and IT support. mortgages and fixed income doing quite well. Operations are moving mountains to build the necessary support structure. but a lot has already been achieved. a: Nothing. we are halfway done implementing a dozen. Q: where are you in creating “an Alberta institutional manager that ranks among the best”? a: Organizations like that do not rise like a phoenix: they take five years or more to mature. with real estate.Q+A WITH THE CEO 125 jobs AiMCo hAS CReAted oveR 125 pRoFeSSionAl joBS. In Operations. without any hiccups. Q: how much did all that hiring and it spending add to client costs? Q: So. It was like an old volkswagen trying to purr like a porsche. what do you see as AiMCo’s contribution so far? leO de bever Chief Executive Officer and Chief Investment Officer ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 7 . Along the way. Our starting position was less than ideal. We started with an organization that generated index returns after expenses. processes and controls are now far more robust. Our costs are as low as those of peers of similar size and AIMCo clients get the benefit of large economies of scale in asset management. our predecessor organization increased investment complexity in unlisted assets between 2004 and 2008. we have added over 125 professional jobs and $30 million per year to the Alberta economy. but it still feels like a construction zone. To deal with 10 years of under-investment. In an attempt to emulate peers. Spending that money made it possible to reduce our dependence on expensive externally managed assets and attract the talent to manage more assets internally at a fraction of the cost without sacrificing return.

John Osborne. Anderson. (Pine) Pienaar.Executive Management Team Left to right: Sally Chan. A. Warren Cabral. Lorne R. Jagdeep Singh Bachher and Carole Hunt 8 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION . Leo de Bever.J.

lOrne r. is a member of the Institute of Chartered Accountants of Alberta and received a BComm from the University of Alberta. Carole holds BComm. Sally holds a CMA designation.J. and received an MA from the University of British Columbia. JOHn OsbOrne Chief risk Officer John oversees the operational and investment risk management program. JaGdeep sinGH bacHHer Chief Operating Officer Jagdeep leads the AIMCo team in its efforts to build outstanding client relationships and create an innovative operational platform to support investment decision-making. carOle HUnT. is a CFA charterholder and received a BAdmin from Brock University.ExECUTIvE MANAgEMENT TEAM leO de bever Chief Executive Officer and Chief Investment Officer leo leads the AIMCo team in its efforts to deliver superior long-term results for our clients. pine holds a BComm from the University of Natal. sally cHan vice president. Human resources lorne leads our efforts to attract and retain the best people for the AIMCo team. South Africa. a. is Certified in the governance of Enterprise IT (CgEIT). Warren cabral Chief Financial Officer Warren is responsible for all financial operations and services for AIMCo. andersOn Senior vice president.c. Jagdeep holds a BASc in Mechanical Engineering and an MASc and phD in Management Sciences from the University of Waterloo. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 9 . Internal Audit Sally leads the internal audit function. is an associate of the Institute of Chartered Secretaries and Administrators in Canada. MBA and llB degrees from the University of Alberta and is a member of the law Society of Alberta. lorne was a senior manager with one of Canada’s leading chartered banks and is a Fellow of the Institute of Canadian Bankers. Client relations pine leads AIMCo’s team responsible for building and strengthening client relationships. leo holds a BA in Economics from the University of Oregon and received an MA and phD in Economics from the University of Wisconsin at Madison. John holds a CA designation. Q. (pine) pienaar Senior vice president. Chief legal Counsel and Corporate Secretary Carole manages internal and external legal services provided to AIMCo and is responsible for Compliance. Warren holds the CA designation.

pension obligations typically look like some combination of conventional and inflation-linked government bonds. We also continuously monitor key operational and financial risks including credit. but we can measure and manage it within client-defined limits. which will require a commensurate increase in the active risk budget needed to achieve that return. If risk appetite were unlimited. Its incremental contribution to total risk is usually even smaller. we expect to raise the annual active return target. A few years ago we set a $500 million target for return on active risk net of expenses.Managing Investment risk Most of our portfolios target a higher return than can be earned from investing in relatively safe assets like T-bills and government bonds. market. We stress test our portfolios to see the impact of various extreme historical and potential market scenarios. Over four years. all capital would be allocated to equities. Active risk is small compared to passive risk when considered in isolation. we cannot eliminate passive. 10 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION . liquidity and counterparty concentration risk for derivatives. the asset class with the highest expected return. To constrain downside risk from active management. most likely because investors have limited tolerance for unpredictable and painful short-term surprises. passive risk is by far the dominant component of total risk. When used properly. Quantitative investment risk measurement systems have improved over the last 20 years. Over time. or about 1% of our balanced pension and endowment funds. AIMCo’s capacity to deliver consistently positive active return will increase with the maturity of our investment program. and that limit becomes our “risk budget”. as they did in 2008. hoping that the higher return will reduce the long-term contributions required to finance pensions. active. Acceptable ranges around asset mix policy allocations signal tolerance for “active” risk – underperforming short-term market returns because of poor returns from active management decisions. the approximate real (inflation-adjusted) value of $100 million invested in a market index portfolio of 60% stocks and 40% bonds can be below expectations by $50 million in the worst 1% outcome. Continuous review of measured risk is also an excellent way of gauging whether investment strategy has been properly implemented. Trying to capture the “upside” from assets with higher expected return like equities is impossible without accepting the “downside” risk that returns will in extreme circumstances fall short of long-term averages by a painful margin. since markets and managers do not typically experience extreme events at the same time. Asset mix policy and the associated listed market benchmarks provide a measure of client tolerance for “passive” or “market” risk – underperforming long-run return expectations because of poor short-term market returns. and asset/liability risk. The long-term reward for taking risk has remained high. pension plans are also concerned about “asset/liability mismatch” risk – the possibility of pension obligations growing faster than pension assets. most plans mismatch assets and liabilities by allocating most of their assets to stocks. solvency. Our clients place a much lower limit on acceptable risk. the scarce resource we manage for maximum return. risk measurement and management is as much a language for comparing and contrasting return and risk across opportunities as it is a set of numbers measuring historically observed extreme annual losses. Investing pension contributions in those assets would keep assets growing at the same pace as liabilities. we set an active risk budget that will over four years allow us to reach this target if risk is deployed with the skill of a first quartile manager. However. We continue to recruit more risk management staff and invest in better risk technology. If we expect to earn a return on risk. causing the plan to become underfunded. they provide a good measure of how bad things can become in extreme circumstances.

Consistent with this principle. The return on pension and endowment assets was 10. balanced and short-Term Government performance pErFOrMANCE aiMco TOTal fUnd ANNUAlIzED rETUrNS (%) AS AT MArCH 31. There is now broad agreement on benchmarks between AIMCo and its clients. 2009. A policy benchmark should measure the net return our clients could achieve without AIMCo. Most listed assets earned a higher than market return.1 2. Unlisted allocations should be linked to the closest listed return and risk proxy.5 3. but that was offset by lower than market returns in unlisted assets. marginally better than the AIMCo Total Fund Benchmark.2 10. Judging historical outcomes using measures now seen as less than perfect is not helpful.3%.3 10. Others reflected absolute return aspirations that already included the expected return from active management.2% for the year ended March 31. and for the last two fiscal years against AIMCo benchmarks in effect in the last fiscal year.Investment performance TOTal aiMco perfOrMance AIMCo’s total fund return was 8. by passively implementing investment policy with listed bond and stock market index investments. 2011 1 YEAr 2 YEAr Benchmark balanced fUnds 8.1 9.5 10. performance was measured by about 90 separate benchmark components.2 1.2 8. The timing of benchmark changes by itself added to the confusion. Some were minor variants of the same listed market benchmarks.0 14. The differences between the AIMCo and client benchmarks have diminished over time as most clients agreed that our approach had merit because it made a better distinction between short-term market forces and incremental return from manager skill.7 Benchmark sHOrT-TerM GOvernMenT fUnds Benchmark perfOrMance bencHMarKs When AIMCo was formed. aiMco’s Total. So we are reporting results for calendar years 2009/10.1 3. while the older absolute return targets were impossible to achieve in a year like 2008. The market benchmarks pose a higher hurdle in rising markets. 2011. AIMCo adopted internal performance management benchmarks on July 1. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 11 .6 14.

2011. the benchmark for the Hedge Funds asset class was the HFRX Global Hedge Fund Index (hedged to Canadian dollar). and January 31. 12 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION . 2010. including Mortgages long-Term Bonds inflaTiOn sensiTive and alTernaTives DEx 30-Day T-Bill Index or DEx 91-Day T-Bill Index DEx Short-Term All government Index DEx Universe Bond Index DEx long-Term All government Bond Index realpac/IpD Canadian large Fund Index(1) DEx real return Bond Index 70% DEx real return Bond Index/30% MSCI World Index 50% DEx real return Bond Index/50% MSCI World Index(2) 50% DEx real return Bond Index/50% MSCI World Index(2) MSCI All Country World Index(3) S&p/TSx Composite Total return Index MSCI World Index MSCI Emerging Markets Index MSCI All Country World Index(4) 25% S&p/TSx Composite Total return Index/ 75% MSCI World Index (ex Japan) Benchmark appropriate for underlying asset class real Estate. (2) Hedged (3) For (4) For the period between April 1. the period between April 1. 2010. the benchmark for the Commodities asset class was the S&P GSCI Total Return Index. 2010. to Canadian dollar. 2011 ASSET ClASS fixed incOMe BENCHMArk Cash and Money Market Short-Term Bonds Medium-Term Bonds. 2010.INvESTMENT pErFOrMANCE aiMco Market return benchmarks As at March 31. Custom benchmark of IPD comprised of Canadian institutions of over $1. and June 30.5 billion covering about 80% of the total capital value of the IPD Index. Canadian and Foreign real return Bonds private Debt and loan Timberlands Infrastructure Commodities eQUiTies Canadian public global public Emerging Markets public Hedge Funds private Equity Overlays Asset Allocation and Overlay pools (1) Came into effect July 1.

e. Some of this is transitory. in private equities.2% 14 $ 12. This effect was significant in our portfolios. Asset groups are allocated a share of the total target based on what the management team considers to be our capacity to take advantage of attractive opportunities. where a rush to fill target allocations resulted in heavy exposure to external underperforming fund vintages invested near the peak of the last equity boom.0% of balanced fund assets. As the comparison to the 2010 fiscal year shows.4 billion in investment income and slightly outperforming the Total AIMCo Composite Benchmark. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 13 . This represents about 1.2% in fiscal 2010/11. this largely reflects limitations in the current attribution software. generating $5. Most of the underperformance of unlisted assets should even out over time. and reflects the typical phenomenon that return expectations for unlisted assets lag in the first few years of their investment – the “J-curve effect”. part of the unlisted active loss is real.2% 8.g. Most of the positive value-added came from listed assets. Conscious efforts to add value by underweighting or overweighting asset classes marginally detracted from returns in 2010/11. Our decision to spend money today to reposition for lower costs and better results tomorrow accentuated the loss.0% 11. This was offset by net negative results in overlays and unlisted asset classes. investment performance (%) 2010/11 fiscal year 2009/10 FISCAl YEAr rate of return Benchmark return above Benchmark $ 8.INvESTMENT pErFOrMANCE reTUrns frOM acTive ManaGeMenT Since 2009. However. Active management contributed $14 million of return above the AIMCo Composite Benchmark net of expenses in fiscal 2010/11.0% 748 The Total Fund earned 8. due to the steep ramp-up in unlisted assets since 2005.. with the shortfall being a mirror image of positive effects in security selection. short-term active returns are inherently volatile. the AIMCo Board and management agreed on a stretch target of $500 million for net value-added.

14 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION . AIMCo’s Fixed Income portfolio is structured to generate superior risk-adjusted returns. 2011. $31.4 billion AS At MARCh 31.Money Market & Fixed Income acTive pOrTfOliO ManaGeMenT AIMCo is one of the largest fixed income managers in Canada. We continue to monitor inflationary environments both in Canada and globally to look for value-adding strategies for this portfolio. while providing adequate liquidity for our clients’ obligations. the poRtFolio CoMpRiSed A totAl MARket vAlue oF $31.4 Billion. There are pockets of value in the debt market that should help drive future performance.

ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 15 .

Special Areas Long-Term Account and Agriculture Crop Insurance portfolios.6 16 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 16% .1 5.1 5.6 7.2% AAA * No available ratings.0% REAL RETURN BONDS 0.1 0.6 2.7 0.055 4.1% B 1.7% FULLY HEDGED 2. 2011) 8.4 Benchmark Universe bOnds Benchmark lOnG bOnds Benchmark seGreGaTed sHOrT-TerM fixed incOMe(2) seGreGaTed lOnG-TerM fixed incOMe(3) privaTe MOrTGaGes Benchmark (1) Does not include Alberta Heritage Savings Trust Fund policy loans.5 9.5 9.4% ASSET-BACKED SECURITIES 5.7 2.4 billion) SECTOR EXPOSURE (As at March 31.6 5. (2) Segregated (3) Segregated Money Market and fixed income ($31.7 13.665 10.1 * Others include Canadian Private Mortgages.1 SEGREGATED ASSET-BACKED FEDERAL SHORT-TERM SECURITIES FIXED INCOME Other 0 23% Other 2. Asset Backed Securities 8.2 1.1% BBB 0.262 Benchmark MOney MarKeT 4.1 3.2 CORPORATE SEGREGATED 31% LONG-TERM PROVINCIAL Federal 24 AA 35.4 BB 0.5 7.1 3. 2011) 7% PRIVATE MORTGAGES 5% Real Return Bonds 5 MONEY MARKET B OTHERS* 0. Approximately 33% represents pension and endowment mandates.0% FEDERAL 35.9 6.0 2.424 1.2 8. while 67% are short-term government funds.6% OTHER* 24.1% AA 38. 2011 1 YEAr 2 YEAr CAlENDAr YEAr rETUrNS (%) 2010 2009 31.4 BBB 2. Collateralized Loans.5 6.1 5.7 5. Money Market and fixed income performance As at March 31. 2011) ASSET MIX (As at March 31.2 5.8 3.7 6.6 27% UNIVERSE BONDS 33% Corporate 33.5 0.1 9.7 4.8 5.1% CORPORATE 21.INvESTMENT pErFOrMANCE Money Market & Fixed Income AIMCo manages $31.4 billion in money market and fixed income assets.0 0.7 CCC 0.4 2. Fully Hedged Derivatives and Fixed Income Portable Alpha investments.4 BONDS A 21.9 5.1 6% 9% 27% Fully Hedged 2. Canadian Private Debt Fund.1% A 2.1 5. Short-Term includes investments held in the Sustainability.6 3.1 AAA 38.4 3.247 7.6% BB 0.4 6.6 1.6 3.779 2.1 8. Long-Term includes investments held in the Debt Retirement Account.9 10. Credit Union Deposit Guarantee and Alberta Cancer Prevention Legacy portfolios.4 6.4% MUNICIPAL 2.0 12.8 0.7 4.8 0. 2011 TOTAl FUNDS – MONEY MArkET & FIxED INCOME MOney MarKeT & fixed incOMe MArkET vAlUE ($ MIllIONS) (1) ANNUAlIzED rETUrNS (%) AS AT MArCH 31.0 5.2 1.1 LONG MUNICIPAL Municipal 1.1 FIXED INCOME 15% 1% Provincial 25.432 5. SUMMARY OF FIXED INCOME HOLDINGS (As at March 31. 2011) RATINGS (As at March 31.3 5.1% CCC 25.4% PROVINCIAL 33.

INvESTMENT pErFOrMANCE MOney MarKeT portfolio Strategy AIMCo manages $5. relative value.S. We invest opportunistically in higher risk.3%. shopping centres. The Canadian mortgage market remains robust.6% more than benchmark. Total returns have been unusually strong over the past two years as markets recovered from the credit crisis of 2008. The portfolio remains overweight in high quality corporate bonds with attractive risk-adjusted returns. and Corporate and provincial credit spreads stabilized. respectively. which should benefit from continued economic and balance sheet improvements.1%. 1. Since timing is uncertain. All of our loans are in good standing. outperforming their benchmarks by 1. secured by offices. mostly because of rapid spread contraction. we are careful to find pockets of incremental return to balance the cost of our cautious stand on duration. and by Canada Mortgage and Housing Corporation (CMHC) insured multi-unit residential properties. Our active return strategy has four principal components: interest rate change anticipation. liquidity and superior risk-controlled return relative to benchmark. performance The Mortgage portfolio returned 6.8% and 0.9 billion in fixed income assets. sector rotation.2%. industrial properties. causing total bond returns to be low or negative. despite relatively large new issuance in both sectors. We mostly hold high quality first Canadian mortgage loans. We often kept duration shorter than benchmarks and benefited from Bank of Canada interest rate hikes in the summer of 2010. MOrTGaGes portfolio Strategy AIMCo’s $2. We expect rates to rise at some point. fixed incOMe portfolio Strategy AIMCo manages $23. performance Absolute returns remain low but our money market funds outperformed the benchmark by 0. B-notes.2 billion in money market assets. higher return Specialty Mortgages (mezzanine loans. The portfolio provides liquidity and targets superior risk-adjusted returns. we are examining U. The objective is capital preservation. second mortgages). We committed $351 million of new mortgage investments in nine separate transactions. performance Our universe and long bond portfolios returned 6. opportunities created by credit market dislocation.3 billion mortgage portfolio meets client needs for stable monthly cash flows.7%. bridge loans. looking ahead. We pride ourselves on committing quickly and closing efficiently on larger loans. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 17 . through increased exposure to credit and floating rate notes with superior returns relative to other money market securities.9% and 8. and anticipating yield curve change.

18 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION .

such as Eighth Avenue Place. a 49-storey premier Calgary office development. the highest environmental standard. 75% oveR 75% oF AiMCo’s CoMMeRCiAl Building poRtFolio iS CeRtiFied undeR An induStRY ReCognized SuStAinABilitY pRogRAM. is one of the first multi-tenant. This certification recognizes high-performance green interiors that are healthy. are less costly to operate and maintain.Inflation Sensitive eiGHTH avenUe place Eighth Avenue place. Core quality properties. productive places to work. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 19 . and have a reduced environmental footprint. produce long run returns for our clients. large office buildings in Canada to be awarded the pre-certified leadership in Energy and Environmental Design (lEED) platinum status.

9 6.716 559 95 Benchmark real reTUrn bOnds 11.0 Benchmark real esTaTe Benchmark privaTe infrasTrUcTUre Benchmark TiMberlands Benchmark cOMMOdiTies Benchmark (1) Inflation Sensitive Total includes $178 million from Private Debt and Loan.1 4.2 10.4 8.9 9.6 12.5%.3 3.010 1.1 9. 2011 AIMCo TOTAl FUND COMpOSITE – INFlATION SENSITIvE inflaTiOn sensiTive MArkET vAlUE(1) ($ MIllIONS) ANNUAlIzED rETUrNS AS AT MArCH 31.9 11.1 1.580 1.1 20. sustainable cash flows in sync with our clients’ obligations and objectives.1 18.1 4.2 13.5 -8.6 -3.1 14.2 20.5 10.1 12.1 3.4 -0. excluded from this table as it was established late in 2010 and did not have a full year of return performance.9 7.5 1.0 18. AIMCo continues to monitor inflationary environments both in Canada and globally to look for value-adding strategies for this portfolio. all real return bond holdings were amalgamated into one pool to reduce management and trading costs and operational risk.8 9.9 -2. real reTUrn bOnds The majority of AIMCo’s CpI-linked real return bonds are buy-and-hold government of Canada issues.5 13.1 14.9 10.2 10.7 4.1 11.7 7. inflation sensitive performance As at March 31.6 10.1%. 2010.8 11. underperforming its benchmark by 0.882 5. 2011 (%) 1 YEAr 2 YEAr CAlENDAr YEAr rETUrNS (%) 2010 2009 10.0 11.2 0. 20 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION .4 6. On March 31.2 -7.2 10.3 12.2 10.0 11.8 18. The portfolio returned 10.2 5.9 10.INvESTMENT pErFOrMANCE Inflation Sensitive Inflation Sensitive assets are designed to have long-term.

3 46.8% RESIDENTIAL 11.2 million in our foreign program.77 1.2% QUÉBEC 32. retail. ON Calgary.3% ONTARIO 1. We also placed a number of key investments in the U.1 6.7 billion of Canadian assets and a 39. and 3. U.3 7. The return includes a 12. underperforming its benchmark by 0. We expect foreign assets to grow to one-third of total holdings over time. 2. Strong performance of foreign assets reverses large value declines taken at the end of 2009.3 30. and Canadian markets. 2011) Office retail retail retail Office Montreal. ON Scarborough.3 INg Industrial portfolio.k..0% return on an average of $4. Top five real estate investments As at March 31.52 1. 0. We therefore have been looking opportunistically for quality assets that require repositioning in dislocated U.3% EUROPE 8.S.S. 1.1% U. ON Toronto.3% RETAIL 39.1 8.86 1.6 billion) GEOGRAPHIC EXPOSURE (As at March 31.5 alongside our Endowment clients.9%. AIMCo’s real Estate portfolio consists primarily of direct investments in high quality office.INvESTMENT pErFOrMANCE real esTaTe portfolio Strategy The real Estate portfolio is expected to produce long run returns between those of stocks and bonds: capital values are more stock-like and volatile. pQ Mississauga. Most of the Canadian asset appreciation reflects strong demand for core real estate. industrial and multi-unit residential properties in Canada’s major centres. providing more diversification and opportunities not available domestically.5 39.K. FT. We selectively invest in higher returning opportunistic strategies.5% FUND INVESTMENTS performance The real Estate portfolio returned 12.5 11.4 discount rates.59 1. 6.1% U. $300 million of core billion industrial properties in the Toronto and Edmonton markets.) OWNErSHIp (%) place ville Marie Square One Scarborough Town Centre Yorkdale Shopping Centre Bow valley Square real estate ($5. 2011) 1.2 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 21 .9% BRITISH COLUMBIA 3. which has lowered capitalization and 2.9 Notable transactions last year include a 50% interest in the $1. AB 2.5%. 2011 prOpErTY SECTOr lOCATION TOTAl COMplEx SIzE (MIllION SQ.1% return on an average of $97.3 32.9% OFFICE 46.S. and European markets.47 50 50 50 50 50 SECTOR EXPOSURE (As at March 31.9 1.4% INDUSTRIAL 7.8first foreign investment for our pension clients the 8.3% FUND INVESTMENTS 0.5% ALBERTA 30. participants in the Canadian market are competing very aggressively for the few investment opportunities available. while income returns tend to stay in a stable band of 5% to 7% per annum.3% OTHER 8. Canadian assets are held for their stable cash flow.

22 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION . Infrastructure investments. 2011.7 billion AS At MARCh 31. the poRtFolio CoMpRiSed Seven diReCt pRinCipAl inveStMentS And 13 Fund inveStMentS.aUTOpisTa cenTral Autopista Central. provide diversified long-term inflation linked returns that match long-term client liabilities.7 Billion. a 61-kilometre. such as Autopista. AIMCo owns 50% of Autopista and believes that Chile’s concession framework demonstrates the country’s commitment to the public–private partnership (ppp) market. connects suburban communities with the downtown business district and the pan-American Highway. with A totAl MARket vAlue oF $1. Chile. $1. to provide a superior alternative for motorists and a strategic corridor for trade and commerce in Chile’s capital city. six-lane highway running through the centre of Santiago. The Autopista Central concession uses a unique tolling mechanism based on traffic volume and road congestion.

ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 23 .

15.5% WATER UTILITIES performance The AIMCo infrastructure portfolio returned 8. with a total market value of $1. The recent global downturn is providing AIMCo with good opportunities. United Kingdom India Canada Australia 22.9% less than its benchmark.09 24 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION .88 12.65 15. We estimate this shift has already saved our clients over $25 million in annual management fees.7 billion) GEOGRAPHIC EXPOSURE (As at March 31. These include secondary transactions in leveraged buy-outs that became distressed after 2008.K.S.0% PIPELINES & MIDSTREAM 22.5 4.S.k. U. AIMCo’s Infrastructure portfolio primarily consists of diversified long-term equity positions in OECD-based assets that are generally regulated or have long-term contracted revenues. SECTOR EXPOSURE (As at March 31.7 billion. from 50% a year ago.12 19. the portfolio was comprised of seven direct principal investments and 13 fund investments. Spain U.1% INTEGRATED UTILITIES 0.3 3 1.1% 1.14 13.65 0. India and Chile). and acquired a Pipelines & Midstream 19 Europe 22 $200 million interest in Frequency Infrastructure group.7% POWER & GAS TRANSMISSION & DISTRIBUTION 3.0% EUROPE 19.9% ENERGY PRODUCTION 2. 2011) Integrated Utilities Communication power generation and Distribution pipelines and Midstream Water U. OTHER 22. In the coming years.4 During the year. 2011) 13.4% U.9% 19.S.8% AUSTRALIA CONTRACTED POWER GENERATION TRANSPORTATION/ LOGISTICS 3.55 2. Brazil. We will continue to focus on “core” brownfield assets and develop partnerships with key strategic investors. Top five infrastructure investments As at March 31.8 Power & Gas Transmission & Dist Energy Production Water Utilities Waste Management Integrated Utilities Communication.k. As at March 31.92 USA 46. valuations tend to lag when listed markets do well.1% COMMUNICATION. 2011. 1. Australia/U.2% for the year. offset by good direct Logistics 13. sovereign assets being sold to cover fiscal deficits.6% WASTE MANAGEMENT 12.g. Direct investments will grow to approximately 75% this year. we committed to invest USD $850 million in a 50% interest in Autopista Central. 13. 2011 COMpANY SECTOr lOCATION puget Sound Energy Frequency Infrastructure group First Wind Compañía logística de Hidrocarburos (ClH) Thames Water infrastructure ($1.INvESTMENT pErFOrMANCE infrasTrUcTUre portfolio Strategy Infrastructure assets are intended to match the long duration real growth characteristics of inflation-indexed pension liabilities. Other Contracted Power Generation 3. The rush to fill rising infrastructure allocations with third party fund investments prior to 2008 contributed to the underperformance. and large infrastructure projects in fast growing economies (e. we will target assets in the $100 million to $500 million range.0% INDIA 46.5% CANADA 4.3% U. which was partially Transportation / investment results. the growing equity need in renewable energy.

In South America and other emerging markets. AIMCo partnered with the Australia New zealand Forest Fund to acquire the timberland assets of great Southern plantations for a total purchase price of AUD $415 million. Doing this transaction directly saved an estimated $3 million in transaction fees and $3 million in annual investment management fees. We expect the great Southern plantations timberland assets to evolve into a high quality institutional estate. the U.S.INvESTMENT pErFOrMANCE TiMberland portfolio Strategy Timberland investments provide inflation hedging and a long-term duration match with client liabilities. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 25 . performance The AIMCo timberlands portfolio generated a 9. AIMCo will shift its geographic focus from North America to emerging markets in Central and South America. going forward. We will also explore the benefits of investing in agricultural lands. Southeast Asia and Sub-Sahara Africa. encompassing timber plantations and mixed agricultural land uses. driven by the expansion of local forest industries and the growth in bio-fuel projects. AIMCo’s Timberland portfolio consists of four assets valued at $559 million. underperforming its benchmark by 0. In late 2010.6% return. willow and fast-growing eucalyptus. wood pellets and forestry carbon credits. We will likely hold less of the traditional North American species and more poplar. Our investment scope may also be expanded to include opportunities related to bio-fuel for power generation.5%. In North America. land pricing continues to be strong. housing market collapse created a dislocation between timberland prices and the forest product end market.

26 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION .

Equities precisiOn drillinG precision Drilling Corporation is Canada’s largest energy services company and a leading provider of oil and gas contract drilling services in North America. precision’s commitment to sustainability permits environmentally responsible operations in some of the world’s most pristine and remote locations. sector and regional exposures.7 Billion.7 billion AS At MARCh 31. style. 2011. $24. precision’s systems have been designed to ensure environmental standards are met or exceeded in all activities and ongoing innovation in the development of new equipment further reduces precision’s environmental footprint. the puBliC equitieS poRtFolio CoMpRiSed A totAl MARket vAlue oF $24. AIMCo’s public equities strategy optimizes return on risk and cost across a number of dimensions including size. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 27 .

6 35.0 35. relationship investments.0 3.4 14.0 10.6 13.7 2.4 10.8 20.8 19.1 11.6 14.6 17.6 18.8 9.4 13. 2011 (%) 1 YEAr 2 YEAr CAlENDAr YEAr rETUrNS (%) 2010 2009 26.1 19.6 21.8 19.6 31.6 18.4 9.0 13.6 19.698 16.8 9. equities performance As at March 31.7 billion) ASSET MIX (As at March 31.1 55.INvESTMENT pErFOrMANCE Equities AIMCo manages $26.5 30.8 12.8 11.2 12.9 20.9 17. 2011) 6% HEDGE FUNDS 87% PUBLIC EQUITY 7% PRIVATE EQUITY Public Equity Private Equity Hedge Funds 23.5 17.3 8. hedge funds.4 8.930 Benchmark canadian eQUiTy 12.0 14.705 6.072 1.2 14. index funds and private equity.8 6.1 19.6 6.076 18.8 52.1 8.7 8.702 28 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION .1 15.702 1.9 -1.1 6. 2011 TOTAl AIMCo – EQUITIES eQUiTies MArkET vAlUE ($ MIllIONS) ANNUAlIzED rETUrNS AS AT MArCH 31.1 Benchmark GlObal eQUiTies Benchmark develOped eQUiTy Benchmark eMerGinG MarKeTs eQUiTy Benchmark HedGe fUnds Benchmark privaTe eQUiTy Benchmark equities ($26.7 28.6 16.2 11.5 20.2 8.3 15.0 5.7 billion in active portfolios.3 6.101 894 1.4 30.930 1.

8 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 29 .6% ENERGY 8. Over the last two years.5 billion in relationship investments is committed to significant and high conviction investments in listed companies to capture incremental return from business and financial improvements. Our $3. U. AIMCo continuously monitors and manages every client’s total equity risk. we restructured our portfolios to create a platform for generating higher and more consistent value-added from shifting between strategies over a three.2% HEALTH CARE 11.8% UTILITIES 4.0% MISCELLANEOUS 14. 2. We use derivative overlays to modify overall risk.4% CONSUMER DISCRETIONARY performance The total AIMCo composite equity portfolio returned 12. which is now saving us more than Materials 9.6% CONSUMER STAPLES 7.2 8.7 4. while the Canadian equity portfolio lagged slightly. 2011 COMpANY SECTOr lOCATION viterra precision Drilling TNT Exxon Mobil Apple public equity ($24. value. as opposed to product level exposure.INvESTMENT pErFOrMANCE pUblic eQUiTy portfolio Strategy We optimize return on risk and cost across a number of dimensions including size. Whenever we can attract the necessary expertise we will manage funds internally. Capital is being allocated more effectively between these portfolios in a way that improves expected value-added at lower levels of risk and emphasizes low correlation within the program.1%.1 2.2 21.7% INFORMATION TECHNOLOGY 9.4 11.1% TELECOM 1.8% MATERIALS 21.8 $50 million a year in fees.2% FINANCIALS 12. based on our analysis of long-term Industrials 12.6% INDUSTRIALS 6. The revamped public equities program consists of fewer higher conviction and higher quality positions and portfolios.S.S.g..to five-year market cycle.5%. outperforming its benchmark by 0. Energy 14. We expect this portfolio to perform well over rolling four-year periods. 2011) Materials Energy Industrials Energy Information Technology Canada Canada Netherlands U.6 performance prospects. global equities performed strongly in 2010/11.6 6. although annual value-added can be volatile. results have been favourable since its inception in fiscal 2010. We are strengthening our ties with some managers.7 billion) SECTOR EXPOSURE (As at March 31. Top five public equity Holdings As at March 31. style (e. sector and regional exposures. growth).6 Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Utilities 7.

2011) Energy Industrials Energy Energy Industrials Canada U. last year’s results have been impacted by the $35 million cost of selling some underperforming fund investments to free up capital for direct placements and save $16 million in annual fees. and by establishing better alignment between management and shareholders.8% CO-INVESTMENTS & DIRECTS FUND ASIA/EMERGING 31. In 2010/11.79 11. They have been transitioning it toward more opportunistic direct and co-investments. by net asset value. Top five private equity investments As at March 31. a new private equity team has been formed to execute a restructuring of the program. It was composed of approximately 70% funds.INvESTMENT pErFOrMANCE privaTe eQUiTy portfolio Strategy The private Equity program is designed to achieve better risk-adjusted returns than listed markets from “transformational” activities at the company level. Colombia Canada GEOGRAPHIC EXPOSURE (As at March 31. select relationship-oriented fund portfolio.5 Co-investments & Directs 44.S.6% 44. while maintaining a smaller.8 Canada USA Europe Asia/Emerging 31. 2008. 2011 COMpANY SECTOr lOCATION Chinook Energy Tomkins limited Bonanza Creek petro Tiger klemke Mining private equity ($1.83 43.5% FUND OF FUNDS 43. 2011) 11.8% EUROPE 8. U.9 billion) STRUCTURE (As at March 31. we also expanded the portfolio to target the growing number of pre-IpO start-ups that are trying to capitalize on disruptive innovation in energy.74 12. a cost-efficient and flexible platform.7% 46.6 Fund of Funds 8.7% UNITED STATES Fund 46.8% CANADA 12. Since that time. AIMCo inherited a globally diversified private equity portfolio that had generally underperformed its peers and was operating at a loss as at December 31.k. Our investments in this area have been focused on clean and renewable energy companies that are well along the path to grow to commercial scale. given the illiquid nature of private equity.63 30 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION . this transformation will occur over the next five years. 12% fund-of-funds and 18% co-investments. materials and agriculture.

which on balance subtracted value. These standardized exchange-listed contracts enable us to quickly create and dispose of broad market exposures at far less cost and with reduced risk of market disruption. corporation.to mid-term fluctuations in the relative attractiveness of the asset classes in which we invest.0% UTILITIES 0. • Swaps.4% MATERIALS 3.31 Financials global Tactical Asset Allocation (gTAA) overlays opportunistically exploit short. underperforming its benchmark by 3.99 Utilities AIMCo uses derivatives to maintain index positions. Derivatives used at AIMCo include: • Bond and equity futures.6% INDUSTRIALS 3.8% INFORMATION TECHNOLOGY 31. and in the way it divides total value added 4. and to implement policy asset allocation changes in the Overlay pools.7% HEALTH CARE performance The total AIMCo composite private equity portfolio returned 9.77 Information Technology into security selection and gTAA.3% FINANCIALS 5. we had some relatively minor Health Care 5.4%.INvESTMENT pErFOrMANCE SECTOR EXPOSURE (As at March 31. but not the obligation. Notable transactions in 2010 include AIMCo’s co-investment with Onex and the Cpp Investment Board to invest Undisclosed 0. primarily using derivatives. These equity option contracts offer the right. for hedging purposes.6% ENERGY 29. We also invested Consumer Discretionary 15.87 Telecom derivaTive insTrUMenTs 1. to buy or sell shares at a set price during a set period. 3.9% TELECOM 15. These over-the-counter contracts.k.1% CONSUMER DISCRETIONARY 1. 2011) 2.40 Consumer Staples asseT pOlicy Overlays Energy 31.62 3. These over-the-counter contracts involve the exchange of two streams of cash flows and are used to obtain or change portfolio exposures without having to directly sell or purchase the underlying asset.20 USD $125 million in a take private transaction of Tomkins limited.2%.2% UNDISCLOSED 2. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 31 .61 the way our attribution system handles rebalancing and implementation costs. • Options.69 positions. They enable us to adjust exposures on certain securities without directly purchasing or selling the underlying security.14 $220 million in pre-IpO ventures. However. last year. are used to hedge foreign currency and interest rate risk. a publicly listed U. • Forwards.4% CONSUMER STAPLES 4. Materials 1.40 2. the bulk of what was measured as gTAA reflected limitations in Industrials 29. negotiated by two parties.

INvESTMENT pErFOrMANCE The following were the most significant derivative programs during the year: 1. Total aiMco – derivative positions As at March 31.333 Value: The outstanding pay or receive obligation of the derivative contract due to changes in market levels. The portfolio managers for each asset class implement their desired active currency positioning relative to the benchmark. Value: The net economic exposure of the derivative. A typical structure includes a swap where AIMCo receives a total return on an equity index (such as MSCI World). Currency forwards Currency forward contracts are utilized to manage AIMCo’s currency allocation relative to the benchmark allocation. currency forwards are utilized to take tactical currency positions. 2. The benefits of using index swaps. efficient access to equity markets.852 1. and pays a short-term floating rate. instead of the actual stock purchases.789 1.044 75 4.551 210 136 1 Index Swap Asset Swap Cross Currency Swap Credit Default Swap OpTiOns Equity Option Fx Option Warrant Fixed Income Option right Total Derivatives (1) Market $ 199 $ 35.801 11.782 511 421 3 14. 2011 DErIvATIvES ExpOSUrE fUTUres/fOrWards MArkET vAlUE(1) ($ MIllIONS CAD) NOTIONAl vAlUE(2) ($ MIllIONS CAD) $ Currency Fx Forward Index Future Bond Future Currency Fx Spot Commodity Future sWaps 59 78 -22 5 -0 -0 -29 -17 -29 58 -41 168 -4 19 154 -2 0 $ 16.026 2. which earns a short-term floating rate.830 1. The underlying cash is invested in a money market pool. To a smaller extent.128 1. include immediate. (2) Notional 32 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION . Equity index total return swaps (Index Swaps) The portion of the public equity asset class that is allocated to the Core Indexing style uses equity index swaps to gain exposure to Canadian and world equity indices. and cost-effective implementation and liquidity.506 13. within policy limits.

Seeking appropriate disclosures on ESg issues by the entities in which we invest. AIMCo will consider opportunities with a moderately increased risk profile. which monitors shareholder meeting schedules and issues. 2. Total aiMco – currency exposure As at March 31. promoting acceptance and implementation of the principles within the investment industry. We believe that responsible investing is a strategy that seeks to maximize both financial return and social good. 4. secUriTy lendinG Continuing challenges in credit markets during 2010 dictated prudence for AIMCo in our securities lending activities. Incorporating environmental. The UNprI is driven by six guiding principles: 1. and provides accountability to both AIMCo and its clients. AIMCo does not hedge foreign currency exposure. Working together to enhance our effectiveness in implementing the principles. As credit markets continue to improve. AIMCo became a signatory to the United Nations principles for responsible Investing (UNprI).S.0 prOxy vOTinG AIMCo has a right and responsibility to thoughtfully vote on all proxies that we receive for shares owned on behalf of our clients. 2011 CUrrENCY CANADIAN DOllAr U. 5.5 3. respOnsible invesTinG In 2010.7 3. a program was implemented to maintain a low tolerance for risk in lending. but have benchmarks that are Canadian-dollar hedged.. DOllAr EUrO BrITISH pOUND JApANESE AUSTrAlIAN YEN DOllAr SWISS FrANC OTHErS AIMCo TOTAl AIMCo actual (%) 73. 3.1 1. to achieve higher returns. infrastructure and timberlands) where the assets are largely outside Canada. is a fully independent proxy voting service provider. reporting on our activities and progress towards implementing the principles. In 2008.INvESTMENT pErFOrMANCE cUrrency generally. There are exceptions (such as foreign real estate. Being active owners and incorporate ESg issues into our ownership policies and practices. We are developing a policy that best balances the aims of both goals. While glass lewis & Co. responsible investing is 80% common sense and 20% further analysis and research. we also use hedging and active currency management to opportunistically enhance returns. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 33 . social and corporate governance (ESg) issues into investment analysis and decision- making processes.5 2.2 2. glass lewis & Co. No losses have been incurred in the program over the past three years. AIMCo reserves the right to override them. to primarily help with preservation of capital.4 0.4 13.1 100. proxy voting is outsourced to a specialist advisory firm. 6. From time to time. We internally review proxy material for any Canadian company where AIMCo clients own a large stake and undertake independent research on important governance issues.

Investment Operations. and drove the percentage of total costs related to externally managed assets down to 68% from 74% last year. we are working on ensuring leading practices and transparency in our operating environment. We also worked to deliver more direct deals. shifting assets under management (AUM) into more cost-effective internally managed assets. Based on accrued internal and external performance costs in 2011. and have been streamlining them in 2009 and 2010. eliminating underperforming assets and funds. The impact of this shift is already being seen as 2011 saw a $9. AIMCo will continue to review the net returns after fees for all investment opportunities when determining whether the investment is executed internally or externally. We focused attention on our investment portfolios: fostering collaboration among asset class teams in order to bring the best opportunities to our clients. Our IT organization has also embarked on adopting CobiT (the IT control framework of the IT governance Institute). AIMCo is seeking an independent audit of its internal controls for Type II certification under Section 5970 of the Canadian Institute of Chartered Accountants (CICA) Handbook. AIMCo’s strategy is to continue to utilize external managers to exploit opportunities where AIMCo does not have or is not in the process of developing internal capabilities. We made it a priority to grow the team and most of our hiring in 2009 and 2010 targeted Operations areas: Finance. legal and other costs. Capital investments were focused on system improvements and replacing underfunded legacy systems. The cost-effectiveness of internally managed assets is best reflected through a comparison of the cost of performance. we seamlessly separated our IT infrastructure from the government of Alberta. increase our internal asset management capability and establish improvements in our governance. cost of performance of an externally managed asset is 5. prOcess We inherited a significant number of manual processes. risk and systems processes for the future. The Operations areas now represent 55% of our staff at AIMCo. This reduction also reflects the impact of management’s earlier initiatives to amend external management compensation arrangements.3 times higher than that of an internally managed asset. but some reflect the high cost of client regulation. peOple The Operations side of AIMCo was starved for resources in the decade prior to AIMCo. We expect our first report in early 2012.4 million reduction in external management fees. Over the next two years. Some of these costs will be one-time. We believe this investment in people has and will continue to result in improvements in investment returns. To demonstrate this. risk management and corporate governance. This is reflected in our results as higher direct external costs for asset administration.Building an Innovative Operational platform During 2011. Systems and Technology. We purposefully increased our headcount and made capital investments. both in the investment management and investment operations areas. restructuring pools as required to respond to regulation requirements of our clients. 34 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION . In 2010. all directly related to AIMCo’s overall vision. We also continue to look for people who are excited about building an innovative operational platform to support investment decision-making. we progressed on a number of initiatives designed to effectively staff the organization.

In 2008 and 2009. methodologies and the skills of our people in operational areas. 2011 were $248. These savings were redeployed in initiatives aimed at improving investment returns. AIMCo showed a lower cost relative to peer organizations. TecHnOlOGy All the technology systems we inherited in 2008 need to be upgraded or replaced over the next two years. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 35 .32% of invested assets) last year. processes. All costs are allocated back to clients on a fair and equitable basis. External investment management costs (excluding performance fees) decreased from last year by $9. ManaGinG cOsTs AIMCo operates on a cost-recovery basis.BUIlDINg AN INNOvATIvE OpErATIONAl plATFOrM inTernal aUdiT The Internal Audit team operates with a small internal group complemented by a co-source arrangement with an audit firm. resulting in higher costs related to internally managed assets.4 million to $116. providing expert advice on best practices and remediation to improve systems. In 2011. We have established a disciplined approach to project management and an IT change management group to build our innovative operational platform. We believe in spending at least 50% of our time planning new technology implementations. Total operating expenses increased compared to last year as a result of operational initiatives designed to improve our operational effectiveness. risk management and corporate governance. We began this process in 2009 and successfully replaced our derivatives management system in 2010. we will begin implementation of our new portfolio management system and are investing in improved data management.7 million. AIMCo uses CEM Benchmarking Inc. Actual operating expenses for the year ended March 31.0 million (or 0. for analyzing and comparing AIMCo’s costs.36% of invested assets) versus $229.1 million (or 0. The group acts as the independent eyes and ears for the organization.

5. Improve our measures of risk and its management across the organization. and being accountable for sizable projects. IT and investment initiatives. 36 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION . In three years. Improve communication with clients and government. Become more effective at finding investment opportunity by promoting collaboration across teams. as envisioned when AIMCo was created: 1. Our organization is very results oriented. Every AIMCo employee from the CEO down has five key goals designed to maximize his/her personal contribution over the coming year in helping execute the business plan approved by our Board of Directors. Because we are still in building mode. One initiative is the founding of the Alberta Finance Institute to fund graduate student research and seminars. in partnership with Alberta universities. we put a lot of emphasis on internal talent development. Deliver $500 million value-added over market returns. We need people who feel at home in an organization abuzz with the excitement that comes with the opportunity to work on key operations. We are working on developing a base of future investment professionals in Alberta. 3. 2. as part of a more general search for experienced people looking for the next big challenge in their career.people Strategies AIMCo started 2008 with 138 professionals. 4. Many are attracted by the unique opportunity to be part of a nimble and entrepreneurial organization with a global $70 billion platform in Western Canada. Strengthen the senior management team. The current set of goals for the CEO and the organization reflect that we are still building a management organization to rank among the best. we have grown to 260.

and have a maximum value of two times target at maximum personal. Employees not part of the Collective Bargaining Unit who do not participate in the long-Term Incentive plan are eligible for an annual merit salary increase effective January 1 of each year. AIMCo is striving to be among the best institutional investors in Canada. measured relative to personal goals and objectives. asset class and fund performance.Compensation Discussion and Analysis Consistent with best practices. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 37 . aligned with our comparator group in the Canadian pension fund management industry. independent benchmarks for investment performance. including top investment and asset managers. • The annual and long-term incentive payments are designed to pay for persistent value-added performance above AIMCo investment benchmarks. the value-added component is calculated at both the asset class and total fund levels. part of their annual incentive payment is based on how well they have achieved those goals. execUTive cOMpensaTiOn principles AIMCo’s executive compensation program is founded upon the following guiding principles: • AIMCo must remain competitive in how it compensates employees. • Each year. employees articulate measurable personal goals and objectives in support of AIMCo’s business plan. measured over rolling four-year cycles. and represent pure incremental return to our clients. AIMCo believes it is imperative that compensation be closely linked to individual performance. • value-added calculations are net of all external and internal costs. • For investment professionals. Competitive compensation is essential in attracting and retaining the most talented executives. Employee AIp target percentages are set with reference to market data. Annual incentive plan (Aip): Most employees not part of the Collective Bargaining Unit are entitled to base salary plus an AIp payment. depending upon individual performance evaluations. AIMCo competes in the global market place with the world’s most sophisticated financial services firms. which are articulated below. while corporate services and operations staff are rewarded based on total fund performance. AIMCo has designed its executive compensation program to meet clearly defined principles and objectives. • Active management should deliver value over AIMCo benchmarks representing the listed proxy relevant to each asset class. and competition for the talent required to achieve that goal is fierce. Mercer and Towers Watson. These strategic principles provide the foundation for a series of building blocks comprising AIMCo’s compensation program: • AIMCo pays a competitive base salary. • Incentive compensation plans and performance benchmarks should align closely with long-term stakeholder objectives. At the same time. and the total compensation package for each of AIMCo’s seven named executive positions identified as the Corporation’s key decision-makers. as well as relevant. • Compensation should be closely tied to performance. This section also describes AIMCo’s compensation program design. cOMpOnenTs Of cOMpensaTiOn Base Salary: AIMCo targets salaries and incentive percentages at the median for larger pension fund managers as determined by Canadian investment management surveys conducted annually by the consulting firms William H.

and has a maximum value of three times the award grants if maximum asset class and fund performance stretch targets are achieved. a special discretionary component within the Annual Incentive plan was approved by the Human resources Compensation Committee to account for unique circumstances facing AIMCo: • The Corporation underwent strategic restructuring in several illiquid asset classes. short-term and long-term disability insurance. Benefits: A broad range of market competitive benefits are provided to employees.6 million maturing on December 31. 2008.8 million for 2011. The existing collective agreement expired on August 31.COMpENSATION DISCUSSION AND ANAlYSIS long-term incentive plan (ltip): The long-term incentive plan (lTIp) was first introduced in 2009 to provide retention and motivation awards for key investment. 2010. will occur in 2013 for the grants awarded in January 2009 (to vest on December 31. cOMpensaTiOn resUlTs Total compensation costs were $47.7 million as at March 31. The accrued value of those first payments is $3. For each of 2009 through 2011 the stretch target has been $500 million. the Management Employees pension plan and the public Sector pension plan. travel insurance. 2012). The first lTIp payouts. which were grandfathered based on participation prior to AIMCo’s incorporation on January 1. • Significant work remains in building the risk. positioning the fund for better long-term results. 2011. executive and operations leaders. Eligible employees must qualify for awards yearly. There were 73 lTIp participants in 2011. lTIp is market based. an increase of $9. lTIp grants can diminish to zero. • returns on these new assets tend to be negative in the short term (J-Curve effect).7 million as at March 31. The total accrued value of all lTIp grants is $6. Restricted Fund units (RFus): AIMCo grants certain employees rFUs to address the “gap” period between commencement of employment and vesting of lTIp grants. a learning and wellness benefit and subsidized public transit. based on performance and potential contribution to AIMCo over the longer term. operations and investment platforms required of a world class investment manager. based on the previous four years asset class and total fund performance. primarily due to our expanded bench strength and improved investment performance. 38 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION . All new employees who are not part of the collective bargaining unit are required to participate in a defined contribution pension plan and defined contribution supplementary retirement plan sponsored by AIMCo. The target amount for rFU grants is the median expected lTIp grant for that employee. with grants totaling $5. AIMCo’s Board will review annually whether the special discretionary component remains relevant to ensure existing employees are equitably compensated for the change in investment strategies and operations initiatives. Collective Bargaining unit employees: Negotiations have commenced with the Alberta Union of provincial Employees on a new collective agreement for our unionized employees. 2011. A new Defined Benefits Supplementary retirement plan has also been established to mirror the government of Alberta’s Supplementary plan for the grandfathered employees who qualify. including health and dental coverage. Actual rFU payments also vary with fund performance and could be without value at vesting. This year. pension: AIMCo participates in two defined benefit pension plans. AIp and lTIp comprise approximately three to five cents for every dollar of value-added above performance benchmarks – substantially less than performance fees paid to external managers.2 million over fiscal 2010. depending upon asset class and fund performance over the relevant four-year period. 2014.

• The governance Committee oversees the policies. george gosbee. reviewing employee compensation and providing oversight on labour relations strategy. diligence and skill that a reasonable and prudent person would exercise in comparable circumstances. The Board of Directors meets six times every year with meetings scheduled one year in advance. ross grieve and Mac van Wielingen. development and implementation of internal controls. Additional meetings are arranged as required. The Audit Committee consists of Cathy Williams (Chair). ross grieve and Daryl katz. AIMCo’s corporate governance framework is a set of policies and procedures that dynamically adjust to facilitate a corporate culture of integrity and accountability in the pursuit of our goals. • The Audit Committee oversees financial reporting processes. which assist the Board in discharging its responsibilities: • The Investment Committee oversees the investment activities and operations of AIMCo. finance. virginia Holmes. At every meeting of the Board of Directors. processes and institutions that form a robust corporate governance framework are integral to the achievement of our goal to be among the best institutional investment managers. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 39 . As part of this mandate. two of which were conducted by teleconference. The Investment Committee held eight meetings. which includes ensuring that human resources policies are aligned with corporate objectives. publicly traded company. Andrea rosen and Mac van Wielingen. All directors are independent of management. The governance Committee consists of Andrea rosen (Chair). The Investment Committee comprises all of the members of the Board of Directors with virginia Holmes serving as Chair. two in Calgary and one in Toronto. The Human resources and Compensation Committee consists of Clive Beddoe (Chair). We believe that the policies. which includes overseeing the terms of reference for the Board of Directors and each Board committee. which includes the receipt of investment. and ensuring the effective operation of the Board of Directors. conduct of the audit process. law. compliance with applicable laws and regulations.governance AIMCo is committed to the highest standards of corporate governance. bOard aTTendance and reMUneraTiOn The Board held six regular meetings in fiscal 2011: three in Edmonton. without management attending. processes and procedures that comprise AIMCo’s corporate governance framework. • The Human resources and Compensation Committee oversees the human resources strategy and policies of the Corporation. Directors are required by statute to act honestly and in good faith with a view to the best interests of the Corporation and are required to exercise the care. the Board sets the strategic direction of the Corporation and oversees the development and implementation of policies and procedures that govern the conduct of AIMCo’s business. bOard cOMMiTTees The Board of Directors has established four standing committees. and implementation of AIMCo’s whistleblower policy. a director must have demonstrated experience in investment management. the Board and all committees have in camera sessions. In order to be appointed to the Board. or served as an executive or director with a large. bOard Of direcTOrs The Board of Directors is responsible for overseeing management of the business and affairs of AIMCo.and risk-related reports from management and the review and approval of certain investment-related matters. as well as two special meetings conducted by teleconference.

000 $ – 7. Directors have not been paid separate meeting fees for Investment Committee meetings held the same day as regular Board meetings. as Chair of the AIMCo Board of Directors. Bissett retired from the Board effective December 31. she attends Committee meetings periodically as a guest. 2011 BOArD OF DIrECTOrS rEgUlAr a. vice Chair and committee Chairs receive additional retainers to recognize the incremental responsibility associated with those positions. 2010.000 10.000 – 1. Mr. As the Human Resources and Audit Committee meetings are held concurrently.gOvErNANCE The table below shows each director’s attendance relative to the number of meetings held by the Board and committees of which he or she was a member.000 1. governance Committee Mac van WielinGen caTHy WilliaMs Chair. Prior to his official appointment to the Audit and Governance Committees on November 25.500 – 1. Mr. 2010.C. Grieve attended meetings of each Committee as a guest.500 – 1. P.500 – 1.000 $ – 7. Human resources Committee david bisseTT(2) rOss Grieve(3) virGinia HOlMes Chair. 2010. resigned from the Board on April 23. Audit Committee (1) Charles Baillie.(5) andrea rOsen Chair. board attendance and remuneration As at March 31. 2010. Holmes is not a regular member of the Governance Committee. Board members receive annual retainers and meeting fees as described in the table below. Baillie generally alternates his attendance between the two. 2011 BOArD OF DIrECTOrS AUDIT COMMITTEE HUMAN rESOUrCES COMMITTEE gOvErNANCE COMMITTEE INvESTMENT COMMITTEE Base retainer (Annual) Chair retainer (Annual) vice Chair retainer (Annual) Meeting Fees $ 20.c. Grieve was appointed to the Board on September 16.000 $ – 10. cHarles baillie(1) SpECIAl AUDIT COMMITTEE HUMAN rESOUrCES gOvErNANCE COMMITTEE COMMITTEE INvESTMENT COMMITTEE rEgUlAr SpECIAl 6/6 5/6 5/6 4/5 3/3 6/6 5/6 1/1 5/6 5/6 5/6 2/2 2/2 2/2 1/1 1/1 2/2 1/2 – 2/2 2/2 1/2 1/1 5/6 – 5/5 2/2 – 5/6 – – – 6/6 4/5 – 5/6 – 1/1 6/6 – 0/1 6/6 4/6 – 6/6 5/6 – 5/5 3/3 2 – 1/1 6/6 4/6 – (4) 5/5 4/5 4/5 3/4 3/3 5/5 4/5 1/1 4/5 4/5 5/5 2/3 3/3 3/3 2/3 1/1 3/3 3/3 – 2/3 2/3 2/3 Chair of the Board GeOrGe GOsbee vice Chair of the Board clive beddOe Chair.000 50. The Board Chair. Q. Human Resources and Governance Committees and attends Committee meetings regularly.000 40 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION . Investment Committee daryl KaTZ franK p. layTOn. board fees As at March 31.000 $ – 7. (2) David (3) Ross (4) Virginia (5) Frank bOard reMUneraTiOn Directors’ compensation is prescribed by provincial regulation. Q. 2010 and attended his first Board Committee meeting on September 23. Layton. is an ex-officio member of the Audit.

000 46. layTOn.500 – – 7. including executive officers. P.000 1. Additionally. 2010.000 3.822 57.000 55.822 20.000 2.000 – – – – – – – – – $ – 4. Layton. cOde Of cOndUcT AIMCo has adopted a Code of Conduct and Ethical Standards.000 – 1.500 34.500 37.000 20. 2010. clive beddOe david bisseTT(2) rOss Grieve(3) virGinia HOlMes daryl KaTZ Chair $ 20.000 – – 4. GeOrGe GOsbee. AIMCo employees receive annual training regarding their obligations under the Code. Compliance with the Code is a condition of employment with AIMCo.000 22.000 15.192 20.000 17.500 – 11.c. This orientation is designed to inform new directors of their responsibilities as directors and provide them with the background information required to make informed decisions and judgments respecting the issues that face the Board. A new Director Appointment policy for portfolio Investments was implemented during the fiscal year. 2011 BASE rETAINEr (ANNUAl) CHAIr rETAINEr (ANNUAl) COMMITTEE CHAIr rETAINEr (ANNUAl) MEETINg FEES ($1.(4) andrea rOsen Mac van WielinGen caTHy WilliaMs (1) George Gosbee was Acting Chair of the Audit Committee until the appointment of Cathy Williams in September 2009.000 $ 93. resigned from the AIMCo Board of Directors effective April 23. AIMCo has established a whistleblower policy and reporting service. cHarles baillie.000 20. service providers and clients with the ability to confidentially report any failure to comply with the Code.000 22. Continuing director education is integral to achieving and maintaining a high standard of corporate governance.298 (1) $ 19.000 20.gOvErNANCE The following table shows payments made to directors based on individual attendance and prescribed fees as described in the preceding table.192 53. 2010 and was compensated on a per diem pro rata basis for the quarter ending September 30.000 20. which contains principles and guidelines for ethical behaviour at AIMCo.000 – 1.000 $ 4. sTandards Of cOndUcT fOr direcTOrs The Board of Directors has adopted various policies that outline acceptable standards of conduct for directors.000 17.355 vice Chair 7. Q.000 11. Gosbee’s quarterly remuneration in June 2010 to account for payment of the Audit Committee Chair retainer while Mr. Grieve was appointed to the AIMCo Board on September 16. Adjustments were made to Mr.000 14. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 41 . Bissett retired from the AIMCo Board of Directors effective December 31.000 20.000 10.298 43. were made to Cathy Williams’ quarterly remuneration in June 2010 to properly account for payment of the Audit Committee Chair retainer. including the Director Trading policies and the Director Conflict of Interest policy. Gosbee held that position. Meetings of the Board of Directors include educational opportunities for directors to enhance their knowledge of the Corporation and industry.C.000 20.000 14. 2010 and was compensated on a per diem pro rata basis for the quarter ending June 30.000 10.000 – – – – – – – – – – $ – 10.000 pEr TrAvEl MEETINg)(1) rEMUNErATION vICE CHAIr (ANNUAl) TOTAl a.355 (5) franK p.000 20. The Code applies to all AIMCo employees. New directors are provided with comprehensive written materials and access to management for the purpose of acquiring the knowledge required to discharge their responsibilities. Q. 2010.000 1.000 $ 50.500 – – 7.000 15. director remuneration As at March 31.500 32. which provides all employees. (2) David (3) Ross (4) Frank (5) Adjustments direcTOr OrienTaTiOn and cOnTinUinG edUcaTiOn AIMCo provides new directors with a comprehensive orientation to the business and affairs of the Corporation.000 1.

Board of Directors 1 2 3 4 5 6 7 8 9 10 42 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION .

Mac H.c.k. WilliaMs Cathy l. David has an llB from Dalhousie University and is a CFA Charterholder. Daryl has an llB from the University of Alberta. Charles serves on the boards of TElUS Corp. 2. 5. 7. J. beddOe Clive J. rOsen Andrea S. Charles holds an MBA from Harvard Business School. a. 6. York University. 3. Andrea has an llB from the Osgoode Hall law School. Grieve ross A. Holmes is a former Chief Executive Officer of AxA Investment Managers ltd. cHarles baillie. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 43 . Standard life Investments ltd. 10. A. virginia has a BA from Durham University. david a. virGinia a. He was honoured by the World Economic Forum as one of 200 Young global leaders. daryl a. 4. a member of the Canadian Council of Chief Executives. rosen is the former vice Chair for TD Bank Financial group and president of TD Canada Trust. O. former president and Chief Executive Officer and current Chairman of the Board of Directors of WestJet Airlines. He retired from the Board on December 31. grieve is the Chairman of the Board of Directors and former Chief Executive Officer of pCl Construction Holdings ltd.C. She is also on the Advisory Board of Queen’s School of Business. O. KaTZ Daryl A.. Canadian National railway Co. GeOrGe f. gosbee is the Chairman.J. Cathy is on the boards of Tim Hortons Inc. He has a BSc in civil engineering from the University of Manitoba. He is Chancellor Emeritus of Queen’s University and a former Chair of the Canadian Council of Chief Executives. He is a board member of Chrysler group llC in Detroit and co-founder of MASS lBp. Chief Executive Officer and Executive Chairman of katz group. is the former Chief Executive Officer and Chairman of the Board of TorontoDominion Bank. Mac has an HBA from the richard Ivey School of Business and has studied post-graduate economics at Harvard University. an MBA from the Schulich School of Business. and a BA magna cum laude from Yale University. ross has received numerous accolades for his business leadership – most notably. van WielinGen Mac H. and is the Chair of the Human resources and Compensation Committee at Enbridge. In 2008 he was named Distinguished Entrepreneur of the Year by the University of victoria. 8. The Miller Thomson Foundation and Junior Achievement. and Universities Superannuation Scheme ltd. Clive is the recipient of numerous awards and honours including induction in the visionaries category to the Marketing Hall of legends in 2009. and Hiscox ltd. and a founder and Chairman of ArC resources ltd.. Cathy has an llB from the University of Western Ontario and an MBA from Queen’s University. Andrea serves on the boards of Emera Inc. kingsett Capital Fund. Williams is the former CFO of Shell Canada ltd. bisseTT David A. and george Weston ltd.. which is now a division of Franklin Templeton Investments. HOlMes virginia A. inducted into the Canadian Business Hall of Fame in 2007 and named Canadian International CEO of the Year in 2000. Charles Baillie. virginia currently serves on the boards of JpMorgan Claverhouse Investment Trust plc. van Wielingen is a founder. george is currently an advisor on the government of Canada’s Economic Advisory Council. Beddoe is a founding shareholder. katz is the founder. Bissett is the founder of Bissett and Associates Investment Management ltd. 9. andrea s. rOss a. has received the Haskayne School of Business’ Distinguished Alumni Award and was awarded Entrepreneur of the Year for the prairie region by Ernst and Young. caTHy l. president and CEO of AltaCorp Capital Inc. and Enbridge Inc. He is also a member of the Canadian Council of Chief Executives. Co-Chairman and Director of ArC Financial Corp. Clive holds an Honorary Doctorate of law from the University of Calgary and from Wilfrid laurier University. He also serves on the boards of Melcor Developments. Charles was appointed an Officer of the Order of Canada in 2006. Chair. in london. clive J. 2010. Canada’s Outstanding CEO of the Year Award in 2009.BOArD OF DIrECTOrS 1. a Director for the National Ballet School Foundation and an Advisor to the School of public policy at the University of Calgary.. U. GOsbee george F.

the Financial Statements have been properly prepared and present fairly the financial position. ca Chief Financial Officer 44 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION . executed and recorded. In the opinion of management. which consists of directors who are neither officers nor employees of the Corporation. which is presented in this annual report. The financial information presented throughout this annual report is consistent with the Financial Statements. are based on the judgment and best estimates of management.Management’s responsibility for Financial reporting The Financial Statements of Alberta Investment Management Corporation (the Corporation) have been prepared by management and approved by the Board of Directors. The Corporation has developed and implemented systems of internal control and supporting procedures which have been designed to provide reasonable assurance that assets are protected. the selection and training of qualified employees. The Audit Committee has reviewed the Financial Statements and has recommended their approval by the Board of Directors. and the Financial Statements and accompanying financial information in this annual report are free from material misstatement. internal compliance monitoring. The Board of Directors is responsible for overseeing management in the performance of its financial reporting duties. The Office of the Auditor general has examined the Financial Statements and prepared an Auditor’s report of its findings. The internal control framework includes the employee Code of Conduct and Ethical Standards. The Financial Statements have been prepared in accordance with Canadian generally accepted accounting principles and within the framework of significant accounting policies summarized in the notes to the Financial Statements. The Audit Committee meets regularly with management and external auditors to review the scope and findings of audits and to satisfy itself that its responsibility has been properly discharged. by necessity. Management is responsible for the integrity and fairness of the Financial Statements and the financial information contained in this annual report. The Financial Statements include certain amounts which. The Board of Directors is assisted in discharging this responsibility by the Audit Committee. and the communication of policies and guidelines throughout the organization. transactions are properly authorized. results of operations and cash flows of the Corporation. leO de bever Chief Executive Officer Warren cabral.

the financial position of Alberta Investment Management Corporation as at March 31.Independent Auditor’s report To the Shareholder of Alberta Investment Management Corporation repOrT On THe financial sTaTeMenTs I have audited the accompanying financial statements of Alberta Investment Management Corporation which comprise the balance sheet as at March 31. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. I conducted my audit in accordance with Canadian generally accepted auditing standards. OpiniOn In my opinion. but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. whether due to fraud or error. including the assessment of the risks of material misstatement of the financial statements. whether due to fraud or error. 2011 Edmonton. The procedures selected depend on the auditor’s judgment. and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement. the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. as well as evaluating the overall presentation of the financial statements. Original signed by Merwan N. 2011. CA aUdiTOr General May 25. and the statements of operations and cash flows for the year then ended. Alberta ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 45 . and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. ManaGeMenT’s respOnsibiliTy fOr THe financial sTaTeMenTs Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles. In making those risk assessments. 2011. aUdiTOr’s respOnsibiliTy My responsibility is to express an opinion on these financial statements based on my audit. in all material respects. the financial statements present fairly. and a summary of significant accounting policies and other explanatory information. Saher.

666 28. 68.699 1.249 48.647 $ Commitments (Note 16) The accompanying notes are part of these financial statements.437 $ 67.647 3.352 26.437 $ 67.249 51.427 12.607 14.453 3.952 1.790 3.092 32.894 6. 2011 ($ thousands) 2011 2010 asseTs Current assets Cash and cash equivalents (Note 4) Accounts receivable prepaid expenses Capital assets (Note 5) $ 19.647 3.345 $ 26.196 1.224 2.766 63.647 $ 21.050 64.873 6.729 40.100 Approved by the Board: a.845 28.261 36.867 9.Balance Sheet As at March 31.100 Current liabilities Accounts payable and accrued liabilities (Note 6) Accrued vacation and benefits Advance from the province of Alberta (Note 7) long-term employee benefits (Note 8) Deferred lease inducement (Note 16) Shareholder’s equity (Note 9) Contributed surplus $ 18.748 $ liabiliTies and sHareHOlder’s eQUiTy 68.793 4. cHarles baillie Board Chair caTHy WilliaMs Audit Committee Chair 46 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION .

233 67 228.285 2.Statement of Operations For the year ended March 31.840 7.683 254 228.490 – 221.088 171.277 38.604 10.155 47.647 5.277 3.252 3. wages and benefits Contract and professional services Administration Data services and subscriptions Amortization of capital assets rent Interest Net income The accompanying notes are part of these financial statements.110 4.697 7.872 7.312 7.621 1.490 $ 247.009 600 221.490 $ – $ – $ – ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 47 .006 9.964 4.140 240 248.937 169.649 50.835 253 248.088 $ 228.937 External investment costs (Note 10) Salaries.409 6. 136.249 3. 2011 ($ thousands) 2011 BUDgET (UNAUDITED) (NOTE 17) 2011 acTUal 2010 ACTUAl revenUe Cost recoveries Interest income expenses $ 221.

969 11.515 (5.029 $ – 1. 2011 ($ thousands) 2011 2010 OperaTinG acTiviTies Net income Items not affecting cash Amortization of capital assets Amortization of deferred lease inducement proceeds from deferred lease inducement long-term employee benefits Changes in operating accounts (Note 11) invesTinG acTiviTies $ – 3.561 Acquisition of capital assets (Decrease) increase in cash for the year Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year sUppleMenTary infOrMaTiOn (8. 48 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION .427 67 Interest paid during the period The accompanying notes are part of these financial statements.587 23.820) 26.979 7.Statement of Cash Flows For the year ended March 31.486) 2.779) 2.108 3.607 195 $ $ 26.285 (304) 6.058 12.427 $ $ 19.849) (6.252 (716) – 4.645 (20.866 23.

Some of these assets are managed by third-party investment managers selected and monitored by the Corporation in order to achieve greater diversification. Significant estimates include external investment management fees and long-term employee benefit accruals. Chapter A-26. The Corporation does not expect that adopting these standards will have a material impact on its financial statements. b) Measurement Uncertainty The preparation of financial statements in conformity with Canadian gAAp requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. 2011 ($ thousands) nOTe 1 aUTHOriTy Alberta Investment Management Corporation (the Corporation) is an agent of the Crown in right of Alberta and operates under the authority of Alberta Investment Management Corporations Act. see Note 12.Notes to the Financial Statements For the year ended March 31. The Corporation has assets under administration of $68. The Corporation forms part of the Ministry of Finance and Enterprise for which the Minister of Finance and Enterprise is responsible.5. The Corporation will adopt pSAB for its annual financial statements ending March 31. The issued share of the Corporation is owned by the Crown. The Corporation was formed January 1. as well as to access external expertise and specialized knowledge. The Corporation’s board of directors may approve recoveries greater than costs to maintain or increase the Corporation’s general reserve. Actual results could differ from these estimates. These assets are invested in segregated investments owned by the client or aggregated in one or more pooled investment portfolios managed by the Corporation. and accordingly the Corporation is exempt from federal and provincial income taxes. 2012. The segregated assets and the assets within the pooled investment portfolios are not consolidated in the financial statements of the Corporation. The Corporation is classified by the government of Alberta’s Treasury Board as an OgO and has elected to adopt pSAB. they are not consolidated in the Corporation’s financial statements. although they have not done so in the past.8 billion. 2011. The Corporation makes investments on behalf of its clients and may also establish companies in which the province of Alberta is the registered owner of the shares for the purpose of managing specific investments. Under the Act. The Corporation recovers all operating expenses and capital expenditures on a cost recovery basis. the public Sector Accounting Board finalized the requirements for government organizations classified as Other government Organizations (OgOs) to adopt either CICA public Sector Accounting Standards (pSAB) or International Financial Accounting Standards. the Corporation is established as a Crown Corporation governed by a board of directors appointed by the lieutenant governor in Council. including comparative amounts on a pSAB basis for the year ending March 31. nOTe 3 sUMMary Of siGnificanT accOUnTinG pOlicies These financial statements have been prepared by management in accordance with Canadian generally accepted accounting principles (gAAp) and include the following significant accounting policies: a) Changes in Accounting policies recent accounting pronouncements In April 2010. 2008. nOTe 2 naTUre Of OperaTiOns The purpose of the Corporation is to provide investment management services in accordance with Alberta Investment Management Corporations Act primarily to the province of Alberta and certain public sector pension plans. As the Corporation has no beneficial interest in these entities. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 49 .

is recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows. The Corporation also participates in defined contribution pension plans. Cost recovery revenue is accrued and billed on a monthly basis as the related costs are incurred and investment management services are provided. and costs for design. past service costs from plan amendments are amortized on a straight-line basis over the average remaining service life of employees active at the date of amendments. development. Under Alberta Investment Management Corporations Act. testing and implementation are capitalized when the related business systems are expected to be of continuing benefit to the Corporation. and on the recovery of indirect costs representing each government fund. pension costs are based on management’s best estimate of expected plan investment performance. measured at an amount equal to the excess of the carrying value over fair value. plan assets are valued at fair value for the purpose of calculating the expected return on plan assets. On January 1. including labour and materials. as at the measurement date. valuation allowances are calculated such that accrued benefit assets are limited to amounts that can be realized in the future by applying any plan surplus against future contributions. Employer contributions are expensed as incurred. salary escalation. f) Employment Benefits The Corporation participates in multi-employer defined benefit plans that meet the accounting requirements for treatment as defined contribution plans. An impairment charge. Factors that are considered and which could lead to an impairment include significant changes in the manner of use of the asset or the overall strategy of the Corporation. Amortization is calculated on a straight-line basis over the following periods: Computer systems hardware and software Furniture and equipment leasehold improvements 5 years 10 years lesser of the useful life of the asset and the term of the lease e) Impairment of Capital Assets The Corporation assesses the carrying values of capital assets for impairment when circumstances indicate the carrying amounts of the assets may not be recoverable. for high-quality debt instruments with cash flows that match the timing and amount of expected benefit payments. the Corporation may establish and maintain one or more reserve Funds with the ability to recover charges in excess of direct expenses. The discount rate used to determine the accrued benefit obligation is based on market interest rates. Transitional obligations are amortized on a straight-line basis over the average remaining service life of active employees. and retirement age of employees. 50 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION .NOTES TO THE FINANCIAl STATEMENTS c) revenue recognition All revenues are reported on the accrual basis of accounting. pension plans and other investments. Net actuarial gains or losses over 10% of the greater of the benefit obligation and the fair value of plan assets are amortized on a straight-line basis over the average remaining service life of active employees. discount rate. This pension plan is accounted for using the projected-benefits method pro-rated on service to account for the cost of the defined benefit pension plan. pension plan and pooled fund’s respective share of the Corporation’s operating costs. the Corporation established a new Supplementary retirement plan (Srp) for those individuals required to withdraw from the existing Supplementary retirement plan for public Service Managers. Hardware and software development costs. 2010. The indirect charges are allocated based on assets under management and transaction volume. using projected undiscounted cash flows. d) Capital Assets Capital assets are recorded at cost less accumulated amortization. Cost recovery revenue is recognized on the recovery of direct costs related to management of government funds.

• Accounts receivable are classified as “loans and receivables” and are measured at amortized cost using the effective interest method. which approximates fair value due to their short term to maturity. • Accounts payable and accrued liabilities.702 $ 3.851 – 1.017 10.315) that is under development and not subject to amortization. The portfolio comprises high quality short-term and mid-term fixed income securities with a maximum term-to-maturity of three years. and advance from the province of Alberta are classified as “Other Financial liabilities” and are measured at amortized cost using the effective interest method. 2011.750 10.NOTES TO THE FINANCIAl STATEMENTS The Corporation provides retention incentives to employees through a long-Term Incentive plan (lTIp) and a restricted Fund Unit plan (rFU).549 $ 32. is expensed as salaries.818 8. which approximates fair value due to their short term to maturity. For any forfeiture of the awards. the accrued compensation cost will be adjusted by decreasing salaries. Any gains or losses on remeasurement are recorded in the statement of operations. 2011 ($ thousands) Deposit in Consolidated Cash Investment Trust Fund Cash in U. securities held by the Fund have a time-weighted return of 1.899 10.607 $ $ 25. The liability for the awards is remeasured at each reporting period based on changes in the intrinsic values of the awards.S.1% per annum (2010 – 1. nOTe 4 casH and casH eQUivalenTs 2011 2010 As at March 31. such that the cumulative amount of the liability will equal the expected payout at that date.727 3.876 3.894 $ 12.995 4.739 $ 44.132 $ 10.017 11.933 494 26. wages and benefits expense in the period of forfeiture. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 51 .0% per annum). 2011 ($ thousands) Computer hardware and software Computer hardware and software under development leasehold improvements Equipment $ 18. accrued vacation and benefits.345 $ 26.558 49 19. g) Financial Instruments The Corporation has made the following classification of its financial assets and liabilities: • Cash is classified as “Held for Trading” and is measured at fair value. bank account $ $ 19.017 (2010 – $8.315 10. which fluctuates over the vesting period based on achievement of certain performance factors.427 The Consolidated Cash Investment Trust Fund is managed with the objective of providing competitive interest income to depositors while maintaining appropriate security and liquidity of depositors’ capital.268 430 $ 7. The value of these awards. nOTe 5 capiTal asseTs 2011 cOsT accUMUlaTed aMOrTiZaTiOn neT bOOK valUe 2010 NET BOOk vAlUE As at March 31. As at March 31.748 Included in capital assets is computer hardware and software of $10. wages and benefits over the vesting period of the awards.

781 4. employees must be actively working for the Corporation on the date of payment.NOTES TO THE FINANCIAl STATEMENTS nOTe 6 accOUnTs payable and accrUed liabiliTies 2011 2010 As at March 31.647 9. Senior management and other key professionals of the Corporation receive lTIp grants on January 1 of each year that vary in size with their level of responsibility and quality of past performance. The lTIp program promises a deferred reward for generating superior average net incremental return from active management (“value-added”) over a four-year period.099) reflects the potential value of all lTIp. the Corporation was in compliance with the terms of its revolving demand facility.894 $ $ a) long-Term Incentive plan The Corporation provides retention incentives to employees through an lTIp and an rFU plan. nOTe 8 lOnG-TerM eMplOyee benefiTs 2011 2010 As at March 31. The accrued lTIp liability as at March 31.873 $ 2. The Chief Executive Officer may also make discretionary awards. 2011 of $6.952 $ $ 9. 2011. nOTe 7 advance frOM THe prOvince Of alberTa pursuant to Order in Council 542/2007 and in accordance with a loan advance agreement. 2009. they will pay between zero and three times the size of the grant.000. 2008 and April 1. will vest on December 31. The maximum amount will be paid if the average four-year value-added exceeds the average “stretch target” annually set by the Board. lTIp grants have an initial cash value of zero.699 (1) Variable pay per the Corporation’s Annual Incentive Plan is accrued based on goal attainment for the calendar year and paid in the subsequent year. The advance is repayable within six months of demand by the province and is interest bearing at a rate equal to the province’s one-month borrowing rate.249). the outstanding advance totalled $28. For each of 2009 through 2011. At March 31. the stretch target is $500. 2008 from the province of Alberta to fund operating and capital cost requirements.745 481 2.745 (2010 – $2. 2011 ($ thousands) long-term incentive plan restricted fund unit incentive plan Unfunded net retirement obligation from Srp plan $ 6. As at March 31.249 (2010 – $28.872 21.009 402 2. based on actual results to that date from the date they were awarded. 2011. 52 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION . 2012.171 18. The first of these grants. When they mature after four years. Payments are tied to asset class and total fund value-added and include a component for achievement of annual individual objectives. The advance is a revolving demand credit facility up to a maximum of $30.483 4. the Corporation received advances on both January 1. 2011 ($ thousands) Annual incentive plan Other accounts payable and accrued liabilities (1) $ $ 14.827 11. with grants being issued annually thereafter. In the majority of situations.000. issued on January 1.

beginning of year granted redeemed/forfeited lTIp grants outstanding.460 5. 2011 2011 2010 lTIp grants outstanding. Total expense related to the lTIp for the year ended March 31.306 representing past service costs of which $1. which was recorded in salaries. wages and benefits. based on actual results to that date from the date they were awarded.460 The maximum potential obligation related to the lTIp as at March 31. Based on an actuarial report dated January 1. wages and benefits. beginning of year granted redeemed/forfeited rFU grants outstanding. 2010. rates of return relative to benchmark do not impact the value of the rFU(s). 2011 of $481 (2010 – $402) reflects the potential value of all rFU(s). c) Supplementary retirement plan On January 1. the Corporation assumed an opening net obligation of $2.425 (2010 – $28. 2011 was $231 (2010 – $321). Unlike the lTIp grants. 2010. end of year 9. 2011 was $43. rFU(s) have time horizons of one to three years for vesting provisions. Information about total rFU grants awarded and outstanding is as follows: As at March 31. end of year 630 15 (140) 505 630 – – 630 Total expense related to the rFU plan for the year ended March 31.723) which was recorded in salaries.740 (2010 – $1. 2011 was $4.NOTES TO THE FINANCIAl STATEMENTS Information about total lTIp grants awarded and outstanding is as follows: As at March 31. 2009. 2011 2011 2010 rFU grants outstanding. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 53 .740 was expensed during the year ended March 31.380).635 (620) 14. b) restricted Fund Unit Incentive plan The rFU program is a supplementary compensation plan based on a notional investment in the total assets under administration. The accrued rFU liability as at March 31.475 4.222 (215) 9. 2010 and $566 was expensed during the year ended March 31. where the value fluctuates based on the total rate of return. the Corporation established a new Srp for those individuals required to withdraw from the existing Supplementary retirement plan for public Service Managers.453 5. Employees must be on staff as of the payment date in order to be eligible to receive any vested payments.

372) 1.5% 1. 2011. by asset category. 2011.917 The measurement date for the plan assets and the accrued retirement obligation for the Corporation’s defined benefit pension plan is March 31. beginning of year Employer contributions Employee contributions End of year Funded status – plan deficit Unamortized net actuarial gain reported liability Current service cost Interest cost prior service cost amortization less: employee contributions Total Srp expense $ $ (2. A 1% increase or decrease in the discount rate would decrease or increase the reported liability by $449 as at March 31. Approximate asset allocations.214 as at March 31.647) 389 129 – (177) 341 $ (2.483 – – – – (2. 54 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION .629 – 177 177 354 (1. The next required actuarial valuation for funding purposes will be March 31.483) – Fair value.372) $ 566 150 27 1.0% 2.0% – 6. 2011 0% 0% 100% 2011 2010 Annual discount rate Annual salary increase – base Annual salary increase – merit and promotion Expected long-term return on plan assets Inflation rate 4.275) (1. of the Corporation’s defined benefit pension plan assets were as follows: As at March 31 2011 Equity securities Debt securities Other The following table presents key assumptions applicable to the Srp: As at March 31. 2011 ($ thousands) 2011 2010 accrUed reTireMenT ObliGaTiOn Beginning of year Current service cost Interest cost prior service costs arising from plan initiation Actuarial gain resulting from changes in actuarial assumptions End of year plan asseTs $ 2.3% 6. A 1% increase or decrease in the rate of salary increases would increase or decrease the reported liability by $1.740 – 2.483) 150 27 1.0% 4.5% 3.483 389 129 – (1.0% 2.NOTES TO THE FINANCIAl STATEMENTS Information about the Corporation’s Srp is as follows: As at March 31.5% 3. 2011. A 1% increase or decrease in the inflation rate would increase or decrease the reported liability by $127 as at March 31. 2013. Actuarial valuations are performed at least every three years to determine the actuarial present value of the accrued retirement obligation.740 – $ 1.5% The reported liability of the Srp is significantly impacted by these assumptions.

compliance and valuation.647) represents equity received by the Department of Finance and Enterprise in exchange for the transfer of the net book value of capital assets to the Corporation on January 1.087 (2009 – $483. the Management Employees pension plan and the public Service pension plan. 2011 ($ thousands) issUed and aUTHOriZed province of Alberta – one share $ – $ – b) Contributed Surplus Contributed surplus of $3. The Corporation’s expense for the pension and disability plans was equivalent to the annual contributions of $2. External investment management fees are based on a percentage of net assets under management at fair value and committed amounts in the case of private equity and private income pools. legal. and other expenses $ 116. audit. established for employees hired after the formation of the Corporation on January 1. legal and other expenses are incurred directly by the Corporation’s investment portfolios and include fees for the following services: asset custody and administration. disposition and structuring.758 for the year ended March 31.NOTES TO THE FINANCIAl STATEMENTS d) pension and Disability plans The Corporation participates in two multi-employer public sector pension plans. At December 31. Fees charged by external managers include regular management fees as well as performance/incentive-based fees.526 169. and two multi-employer long-Term Disability Income Continuance plans.726 19.196). Actual results could differ from these estimates.647 (2010 – $3. These fees include significant estimates and measurement uncertainty.067. The Corporation also participates in a defined contribution pension plan and a defined contribution supplementary retirement plan. the Management Employees pension plan reported a deficiency of $397. The estimates are based upon specified rates and commitment levels in the investment management agreements. nOTe 9 sHareHOlder’s eQUiTy 2011 2010 a) Share Capital As at March 31. 2011 (2010 – $2. which was recorded in salaries. 2008.729. and investment acquisition. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 55 .690 17.562). 2011 ($ thousands) 2011 2010 External investment management fees External performance fees Asset administration. as well as asset administration. 2008. nOTe 10 exTernal invesTMenT cOsTs For the year ended March 31.333 171.199) and the public Service pension plan reported a deficiency of $2.096 35.155 $ 126. Asset administration. wages and benefits. legal and other expenses incurred on behalf of the Corporation’s clients.151 (2009 – $1.277 $ $ External investment costs include external investment management and performance-based fees.061 25. 2010.

2011 ($ thousands) 2011 2010 Fixed income Fixed income(1) private mortgages Inflation sensitive real estate Infrastructure and timber real return bonds and commodities Equities public equities and absolute return strategies private equity Overlays $ 29.588.486) $ 128 (476) 13.318.452.936 $68.451.NOTES TO THE FINANCIAl STATEMENTS nOTe 11 cHanGes in OperaTinG accOUnTs For the year ended March 31.415.411.208 505.800.492 1.587 $ $ nOTe 12 asseTs Under adMinisTraTiOn The Corporation provides investment management services on behalf of certain province of Alberta endowment funds. However.800.090. These assets were administered on behalf of the following clients of the Corporation: As at March 31.792 1.768 $ 27. some investments are managed by third party investment managers selected and monitored by the Corporation in order to achieve greater diversification. 2011 ($ thousands) 2011 2010 (Increase) decrease in accounts receivable Increase in prepaid expenses (Decrease) increase in accounts payable and accrued liabilities Decrease in accrued vacation and benefits $ (2.871 1.943 (1) General Revenue Fund Policy loans have been excluded. other government funds and certain public sector pension plans.579. access to external expertise and specialized knowledge. Investments are made in accordance with the investment policies established and approved by the clients. 56 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION .436.575 2.650.405 24. assets under administration totalled approximately $68.946 113.935 $70.440 1.028) (532) (2.483 18.523 5.267.498 2.332.448 20.729.768 $ 35.500 2.713.063 $ 70.276 4.133.186.977.042. 2011 ($ thousands) 2011 2010 pension plans Ministry of Finance and Enterprise general revenue and entity investment funds(1) Endowment funds (including the Alberta Heritage Savings Trust Fund) Insurance-related funds Other government ministry investment funds $ 31.943 (1) General Revenue Fund Policy loans have been excluded as they are managed by the Ministry of Finance and Enterprise.819 17.691.637 23. at market value.047 (112) 12.666 2.199 1. At March 31.930.934 2.113 3. The Corporation manages the majority of these investments through pooled investment funds.348.256 $ 68.7 billion).8 billion (2010 – $70. 2011.727.774. Investments administered by the Corporation were held in the following asset classes: As at March 31.597 14.652.261.810 2. as they are managed by the Ministry of Finance and Enterprise.747) (179) (5.727.

nOTe 14 relaTed parTy TransacTiOns related parties are the government funds.249 $ 28. The Corporation is an agent of the Crown and has established a credit facility with the province of Alberta to fund operating and capital requirements.675 12. Interest rate risk is the risk that future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Foreign currency risk is the risk that the fair value of future cash flows for financial instruments will fluctuate relative to the Canadian dollar. pension plans and other entities for which the Corporation provides investment management services. dollar bank account.S.680 195 561 756 $ 59. will affect the Corporation’s earnings or the value of the financial instruments held. and as such.652 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 57 . credit risk Credit risk is the risk of financial loss to the Corporation if a customer or counterparty to a financial instrument fails to meet its contractual obligation and arises principally from the Corporation’s accounts receivable from clients.826 $ Accounts payable Advance from province of Alberta 33. pension plans and other entities. The Corporation operates on a cost-recovery basis.403 28. liquidity risk and market risk. Market risk Market risk is the risk that changes in market prices. such as foreign currency and interest rates.196 5. which has provided the Corporation with an advance to fund operating and capital costs. The Corporation had the following transactions with related parties recorded at the exchange amount. As a result. exposure to foreign currency risk and interest rate risk is limited. The Corporation is an agent of the Crown whose debt is fully guaranteed by the province of Alberta. The Corporation operates on a cost-recovery basis and manages its capital to fund operating and capital costs to achieve its strategic plans and offset cost-recovery timing differences.880 577 28.249 Interest on advance from province of Alberta Contracted services (rent and other) asseTs Accounts receivable liabiliTies 13.NOTES TO THE FINANCIAl STATEMENTS nOTe 13 capiTal ManaGeMenT and financial insTrUMenTs a) Capital Management In the definition of capital. Interest rate risk arises primarily from fluctuations in the interest rate on the advance from the province of Alberta and foreign currency risk from fluctuations in the value of the Corporation’s U. The primary objective of capital management is to ensure the Corporation has sufficient capital to support its business and achieve its strategic goals. b) Financial Instruments The Corporation’s financial instruments are exposed to certain financial risks including credit risk. The Corporation’s clients are government funds. the Corporation includes shareholder’s equity. liquidity risk liquidity risk is the risk the Corporation will not be able to meet its financial obligations as they become due. credit risk exposure is limited. which is the amount of consideration agreed upon between the related parties: For the year ended March 31 ($ thousands) 2011 2010 revenUes Cost recoveries expenses $ 76.406 65 1.610 1. advance from the province of Alberta and the undrawn portion of the advance from the province of Alberta.

supplementary retirement plans. the Board has consisted of 10 independent members including the Chairman.069 242 633 343 437 632 647 Salary consists of all regular pensionable base pay earned. retain and motivate top performers. Base salaries are market driven and variable compensation programs reward consistent value-added performance. honoraria. retainers. the Board consisted of 11 independent members including the Chairman and the Deputy Minister of Finance and Enterprise. (2) Variable (3) Other (4) Other Non-Cash Benefits consist of the Corporation’s share of all employee benefits and contributions or payments made on behalf of employees. 2009. and his last day with the Corporation was June 30. The tables below present total compensation of the directors and senior management of the Corporation earned in the year ended March 31. 2009. December 2009. and any other direct cash remuneration.488 – 827 412 458 706 770 $ 108 435 1. statutory contributions and health plan coverage. public Equities (5) (1) Base $ – – 500 – 265 250 225 265 265 $ – – 900 – 466 129 189 394 466 $ 93 385 18 – 55 1 1 1 – $ – – 70 – 41 32 43 46 39 $ 93 385 1. From July 2009 to November 2009. regulated funds. 2011 in accordance with Treasury Board directive 03/2007. Chief Investment Officer announced his retirement on March 31. Cash Benefits consist of LTIP and RFU paid in the year. Pay comprises the Annual Incentive Plan and is accrued based on goal attainment for the calendar year end and paid in the subsequent period. Chief Executive Officer also served in the role of Chief Investment Officer from July 1. This directive applies to all departments. Fixed Income Investments Senior vice president. provincial agencies and Crown-controlled organizations. (5) Since (6) The (7) The 58 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION .NOTES TO THE FINANCIAl STATEMENTS nOTe 15 salaries and benefiTs disclOsUre The Corporation has a pay for performance strategy that exists to attract. lump sum payments. For the year ended March 31 ($ thousands) 2011 base salary(1) variable pay(2) OTHer casH benefiTs(3) OTHer nOn-casH benefiTs(4) 2010 TOTal TOTAl Chairman of the Board Board Members(5) Chief Executive Officer(6) Chief Investment Officer(7) Chief Operating Officer Chief Financial Officer Chief risk Officer Senior vice president. The Deputy Minister of Finance and Enterprise was a Board member and received no compensation from the Corporation during this time. whose compensation is disclosed separately. 2009. including pension.

2011. 2011. the stretch target is $500 million. The total deferred lease inducement as at March 31. 2011 ($ thousands) 2011 lTip GranT rfU GranT TOTal 2010 TOTAl Chief Executive Officer Chief Investment Officer Chief Operating Officer Chief Financial Officer Chief risk Officer Senior vice president. pursuant to Order in Council 23/2008.119 4. For each of the years 2009 through 2011.271 3.296 $ The Corporation entered into a lease agreement for a new facility commencing January 1.588 10. Employees must be on staff as of the payment date in order to be eligible to receive any vested payments. This facility is utilized by the investment pools and at March 31. nOTe 17 2010/11 bUdGeT The Corporation’s budget for the year ended March 31.766). is $6. The maximum amount will be paid if the average four-year value-added exceeds the average “stretch target” annually set by the Board.768. the balance outstanding against the facility is $12.588 3. lTIp and rFU grants have not been included in the Salaries and Benefits table. public Equities $ 500 – 260 – 169 239 239 $ – – – – – – – $ 500 – 260 – 169 239 239 $ 500 362 239 100 169 239 239 The Corporation provides retention incentives to employees through an lTIp and an rFU plan as described in Note 8. This agreement is for 10 years. The value of the rFU grant fluctuates based on the total rate of return on assets under investment from the date they were awarded.050 (2010 – $6. they will pay between zero and three times the size of the grant. ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION 59 . with two optional renewal periods of five years each. rFU(s) have time horizons of one to three years for vesting provisions. 2010. because they have an initial cash value of zero. As part of the lease agreement.NOTES TO THE FINANCIAl STATEMENTS deferred long-Term incentive compensation For the year ended March 31.878 (2010 – $10.000 for letters of credit for security purposes. which includes the Corporation’s offices in Toronto.967 3. The inducement is recognized as a reduction in lease expense over the 10-year term of the lease.210). nOTe 18 cOMparaTive fiGUres Certain comparative figures have been reclassified to conform to the current year’s presentation. 2010. 2011.763 30. the province of Alberta has made available a facility to access up to a maximum of $200. the Corporation received a lease inducement of $6. was approved by the Board of Directors on January 29. nOTe 16 cOMMiTMenTs The Corporation has entered into various agreements with minimum annual commitments for office space and other contracted services as follows: ($ thousands) 2012 2013 2014 2015 2016 Thereafter Total $ 4. Fixed Income Investments Senior vice president. When lTIp grants mature after four years.

4% 1.8% 0.1% 1.6% 0.232 1.8% 2.684 2.476 1.8% 0.3% 5.596 1.443 712 653 517 426 410 370 16.8% 0. 2011 ($ millions) ASSETS UNDEr MANAgEMENT % OF TOTAl royal Bank of Canada Toronto-Dominion Bank Bank of Montreal Bank of Nova Scotia Canadian Imperial Bank of Commerce viterra precision Drilling TNT National Bank of Canada gE Capital Canada Funding Co.258 1.104 1.8% 1.Investments Over $300 Million corporate issuers As at March 31.6% 1.6% 0.071 996 739 697 534 524 413 349 335 9.1% 1.4% 3. Merrill lynch Financial Assets Exxon Mobil $ 1.S.1% 2.0% 0.365 3. 1 province of Ontario province of Québec Canadian Mortgage pools province of British Columbia Financement-Québec province of New Brunswick province of Nova Scotia CDp Financial (Caisse de dépôt et placement du Québec) U.651 6.5% 0.8% 1.0% 0. 2011 ($ millions) ASSETS UNDEr MANAgEMENT % OF TOTAl government of Canada Canada Housing Trust No.252 1.6% 1.5% 24% $ 60 ANNUAl rEpOrT 2010/11 AlBErTA INvESTMENT MANAgEMENT COrpOrATION .9% 0.6% 0.5% 13% $ Government issuers As at March 31. Department of the Treasury $ 4.

Investment Operations JacQUelyn cOlville saMeer verMa vice president.J.com MicHeal dal bellO cHarlie eiGl Senior vice president. real Estate vice president. Finance and Controller vice president. sTeWarT JOHn OsbOrne Chief risk Officer dOUGlas p.Senior Management Team leO de bever Chief Executive Officer and Chief Investment Officer GeOrGe enGMan Senior vice president. Investment Administration . New Operations Initiatives Concept and design: THe WOrKs desiGn cOMMUnicaTiOns www. global Tactical Asset Allocation a. private Equity arTHUr r. andersOn Senior vice president. (pine) pienaar Senior vice president. Q. Human resources Giselle branGeT vice president. private Debt Senior vice president. Internal Audit MicHael baKer Senior vice president. public Equities andreW W. Client relations sally cHan vice president. private Equity carOle HUnT. private Equity sTepHen G. Chief legal Counsel and Corporate Secretary rOberT MaH edWard riecKelMan Senior vice president. Investment Operations JaGdeep sinGH bacHHer Chief Operating Officer brian GibsOn Senior vice president. HUnTley vice president.worksdesign. GUiMaraes vice president. sTraTTOn vice president. Mortgages Warren cabral dale MacMasTer Chief Financial Officer Senior vice president.c. Fixed Income Investments JaMes ridOUT vice president. relationship Investments vice president. Fund Management david sTyles lOrne r. Active Investments Jean david TreMblay-freneTTe vice president. Infrastructure and Timber Investments vice president.

Ontario M5J 1S9 Canada Telephone: 1-416-304-1160 www. Alberta T5J 2B3 Canada Telephone: 1-780-392-3600 TOrOnTO Office 70 York Street. Suite 1700 Toronto.alberta.Alberta Investment Management Corporation Head Office 1100 – 10830 Jasper Avenue NW Edmonton.ca .aimco.

AlBErTA INvESTMENT MANAgEMENT COrpOr ATION AnnuAl RepoRt 2010/11 .

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