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, 2026. 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, 2026 (fiscal 2026), total costs were $1,157 million, lower than the budget of $1,207 million and up slightly from $1,150 million in the prior year (fiscal 2025).

Third-party costs before performance were $64 million lower than budget and $11 million lower than fiscal 2025. 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 to some third-party fund managers resulted in lower costs compared to the budget. The decrease in third-party management fees compared to fiscal 2025 is driven by the sale of some private fund investments. 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 were lower than budget and fiscal 2025 due to lower deal flow activity.

Third-party performance costs are difficult to budget as they largely depend on future investment performance. Third-party performance costs of $321 million in fiscal 2026 were driven by strong performance from third-party fund managers that delivered returns in excess of benchmarks.

Total AIMCo costs were $425 million in fiscal 2026 compared to $490 million in budgeted costs and $461 million in fiscal 2025.

AIMCo costs before performance were lower than budget primarily due to headcount reductions, lower contract and professional services, lower administrative and rent expenses, and lower business technology services. Lower contract and professional services were driven by cost optimization activities to better align with AIMCo’s strategic priorities, including execution of the Business Transformation Program (Program) to modernize our technology and operating model. Lower administrative expenses and rent were driven by continued cost discipline on administrative spending and the closure of two foreign offices. These factors also drove costs lower compared to fiscal 2025 partially offset by the continued execution of the Program.

AIMCo performance costs were lower than budget and fiscal 2025 primarily due to headcount reductions, which also led to the forfeiture of previously accrued compensation awards not vested.