Investment Results

As the administrator of the Plan, LAPP Corporation develops and maintains an investment policy – known as the Statement of Investment Policies and Procedures (SIPP) – that establishes the investment principles, policy guidelines, and the investment management approach of the Plan’s assets. Alberta Investment Management Corporation (AIMCo) is responsible for the day-to-day investment management of LAPP’s portfolio of assets in accordance with the SIPP. By legislation, the Government of Alberta has designated AIMCo as the sole provider of investment management services to LAPP.

During the second quarter, the Plan’s investments generated a return of +0.93%, underperforming the Plan’s policy benchmark by 1.60%.

The second quarter of 2025 was punctuated by escalating global trade tensions, with the US administration’s rather shocking “Liberation Day” tariffs driving a sharp selloff in equity and credit markets at the start of the quarter. However, markets quickly recovered. Reasons include the US administration partially backing down from its initial aggressive stance on tariffs, stronger than expected macroeconomic data in the US and Europe, and robust reported Q1 corporate earnings. Nevertheless, tariff levels on US trading partners still remained at the highest levels since the 1930s by quarter close, casting a shadow over the global economy going forward.

The Plan’s absolute returns in the second quarter were positive due to the aforementioned equity market rebound, with notable performance from Canadian Equity. Relative performance lagged due to illiquid assets, with unfavourable marks in Infrastructure and Private Equity.

As at June 30, 2025, the LAPP portfolio generated a four-year annualized return of +5.68%, outperforming the policy benchmark return of +5.20% by 0.48%. On an absolute basis, the best performing asset classes over four years were Global Developed Equity, Infrastructure, and Canadian Equity.

For detailed quarterly investment results of the Plan, visit Funding and Investment.