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 fourth quarter, the Plan’s investments generated a return of +1.41%, outperforming the Plan’s policy benchmark by 0.13%.

Global stock market finished the fourth quarter of 2025 on generally a strong note. Canadian equities benefited from positive performance from the materials and financials sectors, and ended the year as the world’s best-performing major developed market. Global equities also performed well, fueled by gains in the technology and AI sectors, and overall positive earnings. However, uncertainty for markets was still present in the background from lingering geopolitical issues, inflation concerns, and overall high valuations for risk assets.

The Plan’s positive absolute returns were driven by returns in Public Equities, with notable performance in Canadian Equity. However, both Canadian and Foreign Real Estate continued to struggle during the quarter.

As at December 31, 2025, the LAPP portfolio generated a four-year annualized return of +5.16%, underperforming the policy benchmark return of +5.68% by 0.52%. 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.