AIMCo reports a 7.2% mid-year return while Ontario's median solvency ratio climbs to a record 127%
Pension funds in two of Canada's most economically significant provinces have reported robust results through the first half of 2026.
Alberta Investment Management Corporation (AIMCo), the Edmonton-based Crown corporation that manages more than $210 billion in assets on behalf of Alberta pension, endowment, insurance, and government funds, reported a net investment return of 7.2% for its Balanced Fund and 7.1% for the Total Fund in the first half of 2026.
Over the longer term, AIMCo's Balanced Fund posted a four-year annualised net return of 9.9% and a ten-year net annualised return of 7.8%, as of June 30, 2026.
Public equities were the primary driver of first-half gains, with the corporation noting that "public equities was the strongest contributor to performance, benefiting from resilient corporate earnings and continued strength in AI-related sectors and global equity markets."
That finding aligns closely with broader Canadian pension data: according to Northern Trust Canada, Canadian pension plans posted a median gain of 6.6% in Q2 2026, lifted by global equities with US equities returning 17.1% in Canadian dollar terms and emerging markets surging 26.2% over the same period.
AIMCo's asset mix at mid-year was split roughly evenly across three broad categories: money market and fixed income accounted for 37% of the Total Fund, public equities and absolute return strategies made up 32%, and private markets represented the remaining 31%. The Balanced Fund carried a nearly identical allocation.
Ontario plans hit record solvency levels
Across provincial lines, the Financial Services Regulatory Authority of Ontario (FSRA) released its Q2 2026 solvency report this week showing that Ontario-registered defined benefit pension plans reached a median solvency ratio of 127% as of June 30, 2026.
It’s a five-percentage-point improvement from the 122% recorded in the first quarter, while the proportion of plans projected to be fully funded on a solvency basis rose to 93%, up from 90% at March 31, 2026.
FSRA's accompanying 2025 Funding Report, which compares year-over-year results, shows the going-concern median funded ratio improved to 114% from 112% in 2024, while the solvency median funded ratio climbed to 117% from 112% over the same period.
The share of plans fully funded on a solvency basis jumped to 87% in 2025 from 80% in 2024, a seven-percentage-point gain in a single year.
Despite the strong headline numbers, FSRA noted that the improved ratios were achieved against a backdrop of persistent economic uncertainty, geopolitical tensions, shifting trade dynamics, inflationary pressure, and market volatility.
The regulator recommended that plan sponsors and administrators continue to employ "stress testing, modelling, and other analytical tools to evaluate potential vulnerabilities" in their portfolios. The FSRA data covers Ontario-registered plans only and does not capture the full national picture.
The results complement strong performance from Canada's defined benefit plans heading into 2026 with record strength and growing flexibility, a trend that has continued through the first two quarters of this year.
Leadership changes at AIMCo
AIMCo's mid-year report also disclosed several senior appointments. Cecilia Menghini has joined the organisation as Chief Risk Officer and Kelly Featherstone has taken on the role of Chief Client Relations Officer.
Ursula Holmsten and Jin-Young Kim have been appointed to the AIMCo Board of Directors. The appointments come after a period of significant governance change at AIMCo that saw the Alberta government restructure the corporation's leadership in early 2025.
In transaction news, AIMCo and CCMP Capital Advisors have agreed to sell BGIS, a global facilities management company, to Veritas Capital. Terms of the transaction were not disclosed.
