Alberta Investment Management Corp., a Canadian pension-fund manager with about C$70 billion ($66.8 billion) in assets, expects returns from Canadian real estate to decline, said Chief Executive Officer Leo de Bever.
“Real estate is one of the things that keeps me awake,” de Bever said in a briefing with journalists today from his office in Edmonton. “The kind of returns we’ve seen of 10 percent is not sustainable.”
AIMCo, as the fund is known, has about C$8 billion worth of real estate assets, including C$2.5 billion in Calgary and Edmonton, de Bever said. Long-term returns from real estate investments are likely to decline to match equities in the “7, 8 or 9 percent” range, he said.
Canada’s fourth-biggest pension-fund manager posted a 10 percent net return on investments last year, beating the benchmark return of 8.2 percent, according to its annual report released today.
AIMCo, as the Edmonton, Alberta-based fund is known, has focused on investments in food, energy and materials.
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