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 +6.28%, underperforming its policy benchmark by 0.89%.

Markets in the second quarter of 2026 proved more constructive, as the Middle East oil shock faded and energy prices retraced meaningfully from their early-quarter highs. Global equities snapped back strongly in May, with North American indices reaching record highs led by technology, semiconductors, and companies tied to artificial intelligence infrastructure. The rally narrowed in June as investors became more sensitive to policy expectations and the durability of corporate earnings. Inflation proved stickier than expected even after energy prices eased, prompting central banks – including the US Federal Reserve – to maintain a more restrictive stance, which kept government bond yields volatile through the quarter.

The Plan’s positive absolute returns were again driven by Public Equities, with gains across all geographies and Emerging Markets Equity leading the way. Private Infrastructure and Fixed Income also contributed. Relative performance, however, was negative. Private Infrastructure, Fixed Income, and Private Debt & Loan each outperformed their benchmarks, but those gains were more than offset by Private Equity, which lagged its benchmark by a wide margin as software valuations came under pressure and the pace of asset sales remained slow.

As at June 30, 2026, the LAPP portfolio generated a four-year annualized return of +9.42%, underperforming the policy benchmark return of +10.52% by 1.09%.  On an absolute basis, the best performing asset classes over four years were Global Developed Equity, Emerging Markets Equity, and Global Small Cap Equity. 

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