This is your daily pension announcement: The Pension War Room™️ declares tomorrow dead man walking day.
The Standing Committee on the Heritage Fund is meeting at 1:00. You can watch it live or on a recording on the assembly site. Download the report!
open.alberta.ca/publications/4…
That is the most recent quarterly report. Go past all the self-congratulatory baffle gab at the front and proceed to Note 8.
Check out the horrible return. #ABLeg
THE VALUE ADD IS NEGATIVE FOR Q1 OF 2020 & 2019 AS WELL AS OVER FIVE YEARS!
OMG!💣 We could have paid the investment managers at AIMCO to stay home for the last five years, indexed the portfolio and come out with more money! #ABLeg Let that sink in, Kevin.
One quarter is too short of time frame to make decisions, but five years sure isn't. AIMCO has net destroyed value over five years. #ABLeg
#milburned #fail
At least if we go back ten years the net value added by AIMCO is positive even if it is only 0.2%. Read the end of the note, AIMCO is supposed to earn a 1.0% value add.
Look below, I am not making this shit up. #ABLeg
"...over a five-year period, it is expected that the policy portfolio will earn an average return of 4.5%, adjusted for inflation and value added by investment manager of 1.0%. ... bringing the five-year annualized Portfolio Return
Expectation to 7.0%"
A five year annualized return of 6.2% looks good until you realize that you were supposed to earn 7.0%. No coincidence that Kevin's tenure at the AIMCO is a little more than five years. #ABLeg
I wonder how long he will last.
What makes me really angry is that over this five year period millions upon millions of investment bonuses were paid out to AIMCO employees for below benchmark performance. #ABLeg #fail (and that VOLTS debacle, 'nuff said.)
The GOA should consider indexing their investments. It is clear active management is not working for them.
BTW, take a look at the supersized costs 0.2% for the quarter, annualized that's 0.8%.
Travis lied when he said AIMCO could invest teachers' pensions for 0.55%. #ABLeg
As I have argued for the entire year, there is no cost advantage to investing ATRF assets with AIMCO and there is a significant performance penalty.
Why do Albertans always get a crappy substitute for the real thing? #ABLeg
Please watch the standing committee tomorrow. It is democracy in action.
BTW, is it true @premiamgmt, that AIMCO executives pick their own benchmarks? #ABLeg #milburned
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