2019 Asset Management Changes

Featured Image

In 2019 the Government of Alberta passed legislation (Bill 22) that dramatically changed the way ATRF is required to manage its assets.

On November 18, 2019, the Government of Alberta introduced Bill 22, Reform of Agencies, Boards and Commissions and Government Enterprises Act, 2019, and it became law on November 22, 2019.

On October 5, 2021, ATRF announced the conclusion of the asset transfer to AIMCo for management, in accordance with legislation and legislated timelines.

The Bill's provisions regarding ATRF say:

  • ATRF is required to enter into an investment management agreement with Alberta Investment Management Corporation (AIMCo) with AIMCo as the exclusive provider of investment management services for ATRF’s Pension Funds, except for very small exceptions in limited circumstances.
  • This agreement must take effect no later than June 30, 2020, and the transfer of investment management services must be complete as soon as possible and no later than December 31, 2021.

What is important now, as always, is what’s in the best interest of Alberta teachers’ pension plans. That is what’s guiding ATRF through this process, as it has guided everything we’ve done to support Alberta teachers for generations.

Key Updates

  • On October 5, 2021, ATRF announced the conclusion of the asset transfer to AIMCo. AIMCo will now be in charge of the day-to-day management of over $20 billion in ATRF assets.
  • On September 8, 2021, ATRF announced that we reached an agreement with the Alberta Investment Management Corporation (AIMCo) on the terms of an Investment Management Agreement (IMA) that will protect the best interests of our plans over the long term. The asset transfer to AIMCo is scheduled to continue, in order to meet the December 31, 2021 deadline.
  • The legislation made no changes to the plan itself. ATRF will continue to be the trustee for the plan and will continue to manage the administration of the pension. The ATRF Board remains in control of determining how the pension fund is invested at a strategic level, as well as retaining ownership of the plan’s assets. Currently, plans are being developed to deal with how the fund assets will be transferred to AIMCo, which is anticipated to take place throughout 2021.
  • ATRF and AIMCo were not able to agree on the terms of an IMA by the deadline in the legislation, so the Government of Alberta issued a Ministerial Order establishing the overarching framework for the relationship between ATRF and AIMCo. This Order will remain in force unless replaced by an IMA that is the product of mutual negotiations.
  • The transfer of all investment management from ATRF to AIMCo is expected to be complete by the December 31, 2021 deadline in the legislation.
    • In accordance with the legislated timelines, the management of Infrastructure assets moved to AIMCo in February 2021, and Real Estate and Private Equity assets were transferred in March 2021. The assets transferred to date are governed by specific mandates developed by ATRF, as outlined in a transition plan agreed to with AIMCo. The transfer of public market assets will be complete before the legislated deadline.