Each of AIMCo’s clients operates within unique parameters and specific obligations. Our clients are responsible for establishing their respective investment policies and return targets. AIMCo works with them to develop appropriate investment portfolios that consider the risk and return characteristics so they can meet those targets. Our clients' funds can be broadly categorized into two categories, Balanced Funds and Government & Specialty Funds.
Balanced Funds combine asset allocation and active investment management to earn higher returns. Diversification plays an important role in maintaining a level of portfolio risk that is appropriate to the client, as these funds can traditionally include relatively more aggressive investment strategies, which are implemented in a risk management framework.
Government & Specialty Funds tend to include larger amounts of operating capital, and therefore have a lower risk-tolerance to market fluctuations, and reduced risk relative to equities. These funds target short-term high-quality returns which can mean less volatility. Investments are primarily in fixed income assets and have a commensurately lower return expectation as a result.