Costs Overview

The following AIMCo cost overview should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended March 31, 2025. The consolidated financial statements have been prepared in accordance with Canadian Public Sector Accounting Standards (PSAS).

Certain financial measures in the table below are not based on PSAS. These measures do not have any standardized meaning and may not be comparable with similar measures used by other institutional investment managers, investors or pension plans. They should not be viewed as an alternative to measures of financial performance determined in accordance with PSAS.

For the year ended March 31, 2025 (fiscal 2025), total costs were $1,150 million, exceeding the budget of $1,115 million and $1,085 million from the prior year (fiscal 2024).

Third-party costs before performance were $83 million lower than budget and $11 million higher than fiscal 2024. Included in these costs are third-party management fees whose costs are based on invested or committed assets under management (AUM) depending on the nature and maturity of the fund. Lower commitments than budgeted to some third-party fund managers and the internalization of externally managed AUM resulted in costs under budget. The increase in third-party management fees compared to the prior year is driven by growth in external AUM. Also included are third-party pursuit costs, which are non-recurring in nature and are driven by the amount of capital deployed, number of investment pursuits and complexity of each investment activity resulting in cost fluctuations in any given period. Third party pursuit costs closely approximated fiscal 2024 but were lower than budget due to lower than planned deal flow activity.

Third-party performance costs are difficult to budget as they largely depend on future investment performance. Third-party performance costs of $267 million in fiscal 2025 were driven by strong performance from third-party fund managers that delivered returns in excess of benchmarks.

Total AIMCo costs were $461 million in fiscal 2025 compared to $444 million in budgeted costs and $401 million in fiscal 2024. AIMCo costs before performance was higher than budget primarily due to unbudgeted termination benefits and costs associated with the closure of two foreign offices. These factors also drove costs higher year over year along with increases in salaries to reflect market conditions, rising industry-wide benefit costs and the planned ramp up in our Business Transformation program to modernize our technology and operating model.

AIMCo performance costs were lower than budget and fiscal 2024 primarily due to staff and executive departures resulting in the forfeiture of previously accrued compensation awards not vested.