AIMCo

Alberta Investment Management Corporation (AIMCo) is embarking on a new approach to technology and innovation, rooted in an updated strategy focused, squarely on the needs of clients. Since the crown corporation was formed in 2008, AIMCo has undertaken several bold system implementations. Over time, as the company’s clients and strategies have evolved, assets under management (AUM) have more than doubled.

Since inception, the Alberta-based organization has positioned itself as one of the most cost-efficient and cost-effective institutional investors. It’s something that, for a long while, the organization prided itself in. But, as AIMCo has become more geographically diverse and with asset class allocation becoming more complex and sophisticated, the firm is ready for a new look.

With a new leadership team in place, and on the heels of the best investment returns in the company’s history in 2021, AIMCo is ready to reimagine how technology is used to better serve its clients. The idea is to invest more deeply in various technologies in a more holistic and strategic fashion. Leading the charge to help refashion AIMCo is Denise Man, the company’s first-ever Chief Technology Officer (CTO).

“Organizations like ours, that have operated in constant constraint, become highly skilled at making trades offs, maximizing a technology solution by patching what is necessary, and incrementally innovating on the edges, often without the opportunity to take a long-range approach to enabling the business and strategy,” says Man.

The juxtaposition is that AIMCo is an organization that runs patient capital. 

 ​As long-term investors, we need to harness the advantages that the right technologies and timely data and insights can enable. We can’t use patchwork or run technology quarter to quarter or year to year, nor should we run system to system 

“Unlike others, we have the gift of time and should be investing and planning for the far horizon. Powerful new technologies, and industry partnerships, when well integrated, have the capacity to positively change the business of institutional investing and asset management,” explains Man.

The time is right for AIMCo to proactively invest in tech to meet tomorrow’s more complex investing demands. While the current technology works well, the firm has concluded-it should not sustain its current tech platforms for the long-term; especially since AIMCo and its clients have become significantly more sophisticated.

Analogous to a favourite jacket that, over time, begins to develop holes in the elbows. Maybe a seam or two starts to unravel, or perhaps the fit drifts out of style. One might bring it to a tailor to patch the elbows or alter the cut of the coat for a more modern look. While it still fits, it’s no longer the jacket that was originally purchased and may even be out synch with the rest of one’s wardrobe. 

“As long-term investors, we need to harness the advantages that the right technologies and timely data and insights can enable. We can’t use patchwork or run technology quarter to quarter or year to year, nor should we run system to system.”

Man references a previously held “best-of-breed” approach to common architecture, meaning the best systems were selected for each business capability. 

“This type of architectural design can be known to have high maintenance and replacement costs, and the patchwork of systems over time can impact interoperability, process continuity, and ultimately, the fidelity and access to data.” 

With new C-suite leadership, AIMCo is refocused with clients at the center. The company has also developed a new strategy with three pillars — providing consistent, reliable service, developing a customizable investment platform, and promoting a high-performing culture.

“With technology at the table, there’s an opportunity for us to truly partner with the business and our clients by re-examining their needs across the whole technology landscape. From office expansions to building portfolio resiliency, technology will help AIMCo deliver superior, risk-adjusted net returns for our clients,” explains Man.

This new strategy will help AIMCo revisit platform opportunities, end-to-end process, and be intentional about where they want to differentiate.

“With architectural redesigns, we can take better advantage of the volume and types of data available in the market. As well, there is improved speed from which we can generate meaningful insights with available data analytics capabilities.”

Robust investment in technology will help AIMCo avoid calcification and future inefficiencies. Ultimately, technology is a strategic enabler for AIMCo to deliver strong total returns for its clients. Man thinks AIMCo is perfectly poised to let technology assist in fulfilling the company’s mandate.

“We have some inherent advantages. First is our culture. As an organization, we not only have the courage to change, we have also made it imperative to embrace diversity and psychological safety. With our mix of diversity in backgrounds, skills, and thinking in a high-trust environment, AIMCo has a bedrock for innovation and game-changing progress. Innovation happens when you’re able to connect dots differently, cross pollinate, and share unexpected ideas. With it, you get better products, and a more efficient and successful organizations. It also leads to better insights, and ultimately, better outcomes for our clients,” explains Man.

With around 600 team members, the company is small enough that leadership can personally connect and galvanize all employees to ensure clients are at the center of all they do. AIMCo, alongside its clients, is responsible for the livelihoods of hundreds of thousands of people across Alberta. Man takes this very seriously.

“I take great pride and I take a great sense of responsibility in helping secure a better financial future for our clients and the Albertans they serve. I’m excited to use technology to help transform the organization, helping to make us smarter, nimbler, with data driven decisions, all to help our many clients meet their fiduciary responsibility to the people of Alberta.”

Now, for the first time in AIMCo’s history, Man is helping trailblaze and is in pursuit of AIMCo’s latest and most tailored jacket to date – one with the right fit for where the organization is going in future.