Alberta Investment Management Corp. (AIMCo) posted an overall return of 6.9 per cent in 2023, despite challenges in its real estate portfolio. The asset manager, which invests on behalf of pension, endowment, insurance, and government clients in Alberta, ended the year with $160.6 billion in assets under management.
The return, though positive, fell below AIMCo’s benchmark return of 8.7 per cent.
The real estate portfolio was down 8.4 per cent at Dec. 31, 2023, offsetting significant gains posted by public equities and fixed income, which were up 15.8 per cent and 7.7 per cent respectively. The private equity portfolio also generated a positive return, at 6.7 per cent, while renewables were up 3.5 per cent. Mortgages and private debt and loan posted positive returns of 4.5 per cent and 9.6 per cent, respectively.
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AIMCo took the hit to its primarily North American-focused real estate portfolio alongside other funds invested in the office segment of commercial real estate as hybrid work persisted, said Marlene Puffer, who has been the asset manager’s chief investment officer since early last year.
“The valuations have suffered for more than one reason,” she said, adding that clarity around interest rates coming down — hopefully over the next quarter — could lead to more deals in the sector, in which there is often a large gap between the price a buyer is willing to pay and the amount a seller is willing to accept.
Positive on Poloz
“That is the dance that’s happening right now,” she said. “I think the market will settle itself out and we’ll see some significant properties change hands this year. But they’re not going to be changing hands at bottom-of-the-barrel valuations.”
AIMCo’s real estate holdings are primarily located in Canada and the United States, with some in Europe and the United Kingdom. At the end of fiscal 2022, the office segment accounted for 21.3 per cent of the portfolio, with updated figures expected to be published this June.
Puffer said she views it as a positive development that former Bank of Canada governor Stephen Poloz has been selected to lead a working group created to help the federal government identify domestic investment opportunities for pension funds in Canada.
“I have a lot of faith in Stephen Poloz to lead this activity. I think he’s a very balanced, thoughtful investment and markets expert and we’ll be very pleased to work with him on this,” she said of the working group, announced in last week’s federal budget, that will focus on investment opportunities for pensions in digital and physical infrastructure, airport facilities, artificial intelligence and housing.
Canada’s large, globe-trotting pension management organizations were blindsided by a section in last fall’s economic update that indicated Ottawa planned to find ways to keep more of their billions of investment dollars in Canada.
Assets in Canada
“There are certainly areas where discussion can, I think, be very productive,” said Puffer, who was chief executive of the division responsible for investment management of CN Pension Trust Funds and also served as vice-chair of the Board of the Healthcare of Ontario Pension Plan (HOOPP) before joining AIMCo.
“We have a lot of assets in Canada today and one of the questions is whether or not there can be additional, for example, infrastructure assets available in Canada that are attractive for us in terms of our global opportunities.”
The budget specifically mentioned airports, an infrastructure asset Canada’s largest pension managers have coveted for years. The Liberal government studied the potential of multi-billion-dollar privatizations in 2017, but the idea was ultimately shelved. Puffer said it’s too early to say whether a major Canadian airport will be put on the block.
“None of us know very much about what the government has in mind at this moment so it will be interesting to see how that all evolves,” she said.
AIMCo’s annualized 10-year return was 6.7 per cent at the end of the 2023. The asset manager also publishes returns for a “balanced fund” across all asset classes, which does not include clients that exclusively choose fixed income and money market investments. AIMCo’s annualized 10-year return for this balanced fund mix is 7.3 per cent.
Client mandates dictate to some degree how much and how quickly portfolios can be adjusted in response to market and macro-economic conditions, Puffer said, as do some asset classes such as infrastructure, which tend to be long-term holdings.
Private debt is an asset class where shifts are easier and AIMCo is keen to expand activity there, she said, describing “modest” deal flow from a year-long joint venture with another Canadian pension, the Public Sector Pension Investment Board. (PSP) That arrangement was forged in January 2023 when the Alberta-based asset manager snagged leveraged finance and capital markets veteran David Scudellari from PSP. Puffer said AIMCo has also been working with large global private credit players in the U.S. and Europe, where the relationships have led to a broadening of deal flow in other asset classes such as private equity — and to bigger allocations.
She singled out one recent transaction, which she identified only as “a popular one” among institutional investors, as one in which AIMCo might normally have seen its allocation cut back.
“And in this instance, we got the allocation that we asked for because of the strategic partnership activities,” she said.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
