Investment Philosophy Investment Beliefs Taking a risk has a persistent long-term reward Bonds provide high security of principal but have low long-term returns. Stocks command much higher long-term returns, to compensate for rare but extreme losses in years like 2008. The equity risk premium will persist since market returns cannot be anticipated in the short run. We are risk managers Our clients want rapid asset growth, but have a limited capacity to absorb downside risk. Risk is our scarce resource, to be deployed where it will earn the highest return. Return and risk are best managed across all investments Maximizing return/risk by asset class is suboptimal for the portfolio. Active management can be an important source of return Listed markets will always supply the bulk of our return. Superior security, sector and country selection can add value, with little incremental risk. Our comparative advantages are cash and patience We can earn a premium return for being able to commit sizeable capital for long periods of time. Unlisted investments must offer better returns than their closest listed proxy. Investment strategies must respond to change Good investment ideas don’t last forever. There is a reward for spotting new opportunities early. Some of the best opportunities do not fit asset class silos. Good governance has a return There are good business reasons for companies to act responsibly. We may use our influence as shareholders to improve business practices. Our easiest return is money we do not have to spend Managing internally is more cost-effective with the right expertise. Strong operational support can avoid costly operational errors. Our goals should align with client objectives We want to improve on what our clients could earn from passive investment in listed markets. Who We Are At a Glance Our Clients Leadership Governance What We Do Investment Philosophy Asset Classes Responsible Investing Careers Insights Contact Connect with us Privacy Statement Terms of Use Confidential Reporting Vendor Information Copyright 2021 by Alberta Investment Management Corporation

Privacy Statement Who We Are At a Glance Our Clients Leadership Governance What We Do Investment Philosophy Asset Classes Responsible Investing Careers Insights Contact Connect with us Privacy Statement Terms of Use Confidential Reporting Vendor Information Copyright 2021 by Alberta Investment Management Corporation