AIMCo Has No Plans to Reduce U.S. Exposure Despite Trade Tensions, CIO Says

Why It Matters

AIMCo’s stance signals continued confidence in U.S. markets, encouraging capital inflows that can shape private‑credit pricing and pension fund performance. It also underscores how large institutional investors are navigating geopolitical risk while seeking yield.

Key Takeaways

• AIMCo keeps 38% of assets in the United States.
• Private credit remains about 5% of its portfolio.
• CIO sees illiquidity as deal flow opportunity.
• 2025 net return hit 7.5% despite benchmark miss.
• No reduction in US exposure amid trade tensions.

Pulse Analysis

AIMCo, one of Canada’s largest public‑pension managers, manages roughly CAD $100 billion (≈ US $73 billion) for provincial pensions, endowments and government funds. Its decision to hold steady on U.S. exposure comes at a time when trade friction between Canada and the Trump administration has prompted some investors to pull back. By reaffirming a 38% allocation to the United States, AIMCo signals that it still views the market’s depth, regulatory stability, and growth prospects as outweighing short‑term geopolitical risk, a stance that may influence peers weighing cross‑border exposure.

The private‑credit segment, now about 5% of AIMCo’s holdings, has been under pressure as borrowers face tighter financing conditions and investors grow wary of illiquid assets. Yet the CIO, Justin Lord, argues that the current negative sentiment and widening spreads actually open a window for high‑quality, senior‑secured deals, especially in sectors where cash‑flow resilience is evident. Compared with Europe, where AIMCo has already built a larger private‑credit foothold, the U.S. market still offers untapped opportunities, and the fund plans to prioritize senior secured exposures that can better weather liquidity squeezes.

Performance data shows AIMCo delivered a 7.5% net return for 2025, boosted by an 18.6% one‑year gain in public equities, while private‑debt generated a respectable 7.9% return. Despite missing its benchmark—largely due to a challenging private‑markets environment—the results highlight the diversification benefits of a multi‑asset strategy. For pension beneficiaries, the firm’s commitment to U.S. assets and selective private‑credit expansion suggests a focus on long‑term risk‑adjusted returns, positioning AIMCo to capture upside as market conditions normalize.