Allstate Investment Management Company (AIMCO) provides investment advisory services primarily to its affiliates, including subsidiaries of The Allstate Corporation, and retirement plans sponsored by The Allstate Corporation. AIMCO manages investments in accordance with each company's investment policy, providing research, making recommendations, and placing purchase and sale orders. AIMCO may also retain sub-advisers. AIMCO also manages collateralized debt obligations (CLOs).
Fee Structure
Allstate Investment Management Company (AIMCO) negotiates its fees with each client. AIMCO does not charge its affiliate-sponsored retirement plans or Allstate foundations for their advisory services. AIMCO charges the CLOs a specifically negotiated base management fee together with incentive fees payable if and when the holders of the equity of the specific CLO have realized various levels of return on their investment. AIMCO may charge fees to its affiliated entities with portfolio values greater than or equal to $25 million based on the types of assets and the cost of managing such investments. The total fees, if any, are determined by the asset mix in the portfolios. The fees are negotiable, with either party having the right to terminate an agreement upon six months' notice. The fees are lower than those that would be charged to unaffiliated entities. AIMCO charges its affiliate Canadian insurance companies an advisory fee of 6.5 basis points on an annualized basis, calculated on the average of the monthly amount of the investments. For investment management services, AIMCO charges its affiliate Canadian insurance companies a fee based on the types of assets and the cost of managing such investments. The total fees are determined by the asset mix in the portfolios. The fees are negotiable, with either party having the right to terminate an agreement upon six months’ notice. The fees are lower than those that would be charged to unaffiliated entities. Unless otherwise noted herein, AIMCO does not charge its affiliate entities with portfolio values of less than $25 million for their advisory services. AIMCO does not charge the Allstate Short Term Pool a management fee with respect to its role as either managing member or investment manager; however, the Allstate Short Term Pool does reimburse AIMCO for operating and overhead expenses incurred with providing services both as managing member and investment manager.