Stephen Harper appointed chairman of Alberta Investment Management Corporation

Former Prime Minister Stephen Harper has been named the new chairman of the board for the Alberta Investment Management Corporation (AIMCo), as announced by the provincial government on Wednesday.

Harper, who served as Canada's 22nd prime minister, will take on the role for a three-year term, following the government's decision to remove all 10 previous board members, along with the CEO and three other executives, less than two weeks earlier. The government described this move as a necessary "reset" for the organization.

"Albertans should be grateful and thankful that he would consider doing this," Alberta Finance Minister Nate Horner said in a statement on Wednesday.

AIMCo, which manages over $160 billion in assets including pension funds and the Heritage Savings Trust Fund, oversees the retirement savings of around 500,000 Albertans through various public sector pension plans.

Harper's appointment follows the Alberta government's move on November 7 to remove AIMCo's entire board. Political scientist Duane Bratt commented on what this change could mean for the future of the pension fund manager. Premier Danielle Smith has expressed her intention to transform the Heritage Fund into a sovereign wealth fund, aiming to grow it from $25 billion to $250 billion by 2050.

The announcement of Harper's appointment has raised concerns among critics about the possibility of political influence on investment decisions, which could undermine the goals of maximizing returns and minimizing risk.

Horner, who temporarily stepped in as board chair after the November 7 changes, has now appointed Alberta's deputy minister of finance to a permanent position on AIMCo’s board. Additionally, three board members previously let go in the purge—Jason Montemurro, Navjeet Singh Dhillon, and James Keohane—have been reinstated.

Harper is expected to guide AIMCo to improve investment returns while managing operating costs effectively and maintaining good relationships with the pension plans it manages, according to Horner.

Horner mentioned that Harper had expressed interest in the role about six months ago. He had previously voiced concerns about AIMCo’s rising operating costs and underperformance against investment benchmarks.

Horner emphasized that Harper’s appointment is unrelated to any discussions surrounding the potential creation of an Alberta pension plan or separation from the Canada Pension Plan.

In a government release, Harper stated he would serve in the role without pay, calling it a "meaningful act of public service" for Alberta. "I also feel uniquely positioned to help the organization improve its governance," Harper added.

Despite Harper’s experience as a former prime minister, critics, including opposition NDP leader Naheed Nenshi, questioned his expertise in fund management. Nenshi, a former business professor, noted that effective board members should have specialized knowledge of the industry.

Gil McGowan, president of the Alberta Federation of Labour, voiced concerns about the politicization of pension funds, stating that the funds belong to workers and retirees, not the government. McGowan suggested that unions should be represented on the AIMCo board, given their members’ reliance on the corporation’s management of pension funds.

While Horner rejected these requests, Sebastien Betemeier, a finance professor at McGill University, expressed reassurance that some previous board members had been reinstated, helping to preserve institutional knowledge. However, he raised concerns about whether Harper's appointment signals political influence over AIMCo’s decisions.

Jason Schilling, president of the Alberta Teachers’ Association, also expressed frustration with the growing politicization of AIMCo, particularly given that the corporation manages the pensions of 85,000 teachers in the province.