LAPP’s financial position continues to improve and our progress is detailed each year in our audited financial statements, which are published as part of our Annual Report each July. The most recent statements available, as signed by the Auditor General of Alberta, are for the year ending December 31, 2017. You can read detailed information about last year’s investment performance in the 2017 Annual Report.
The Board monitors investment performance throughout the year. All of the Plan’s assets are managed by Alberta Investment Management Corporation (AIMCo). The first quarter investment results of the Plan’s asset fund are published below.
For the first quarter of 2018, the LAPP fund generated a return of 0.85%, 0.04% below the policy benchmark return of 0.89%.
Concerns about U.S. trade policies dominated market sentiment during the first quarter of the year contributing to the significant increase in market volatility, particularly, in February. Most equity markets experienced negative returns (in local currency terms), with the Canadian equity market, as represented by the S&P/TSX Composite Index, falling by as much as 4.52%. In addition, the Canadian dollar depreciated against the major world currencies.
The Fund’s modest positive total returns for the quarter were attributed mainly to its exposure to global markets and the Fund’s hedging policy.
Over a one year period ending March 31, 2018, the Fund returned 8.32%, including 0.96% of value added over the policy benchmark.
In 2017, the LAPP fund returned 10.1% on its investments net of fees and exceeded the return of the policy benchmark by 1.14%. The 2017 Annual Report provides commentary on the last year’s investment performance.