Thread by @yomeeks

This is your daily pension announcement: First of all, hats off to the AIMCo and Alberta Finance employees reading my tweets to stay abreast of issues. I know how hard you guys work. #staystrong #handsoffmypension #noireallymeanit Use an anonymous account to follow me.

I was reminded by a friend today that with all of this focus on cost and investment return that I have not dealt with the politicizing of our pension funds and indeed all of assets of AIMCo. Two important parts of the GOA budget announcement:

First, "to build a “made in Alberta” portfolio for healthy public investment". Second, (a paragraph later) "AIMCo is expected to provide maximum returns to its clients, and processes will be expanded to support broader agency involvement."

Those are my trigger words: "made in Alberta portfolio" and "broader agency involvement". Travis and Kevin have not defined these terms for Albertans yet. But, as someone who been deep in institutional investing for 15 years, it does bring to mind some names: #ineedasafeword

Novatel
Gainers
MagCan
Millar Western Pulp
Swan Hills Waste Management
Canadian Commercial Bank
Northland Bank
What do these names have in common? Either Albertans lost a lot of money on these business forays by GOA. #chickenhawkcapitalists

Or, teachers lost a lot of money after ATRF was urged to have a "made in Alberta" portfolio. Broader agency involvement? WTF? I know that every word of budget documents is proofread hundreds of times to ensure a correct and consistent message. #wtf

It doesn't say client or stakeholder or taxpayer. It says agency. As in government agency. I am surprised that @postmedia is not all over this. Does the GOA budget contain provisions for a broad spectrum of government agencys to give AIMCo investment advice?

Or maybe the GOA wants to borrow money from AIMCo. ("See, its like we are paying ourselves.") I won't even go into all what is wrong with this other than to say that is why ATRF was jointly governed with a structure to prevent "broad agency involvement" in any decisions.

If you have followed my tweets for a while you know that I despise chicken-hawk capitalists. They strongly believe in free market competition for capital, labor and markets. Until they have to compete then they want a handout. #thatdoesntfeelright

I certainly hope that a "made in Alberta" portfolio is not a bunch of businesses who can't compete for capital getting a subsidy straight from AIMCo. Or for holding second tier real estate that can't attract a bidder. It would go straight into AIMCo's portfolio.

The worst thing about chicken-hawk capitalists is they can't ever see the inherent contradiction in their position. JK is a believer in free markets and at the same time ran on a platform of fixing the economy.

A true believer in free markets would understand that governments only have very limited control of some aspects of the economy and certainly no control over commodity prices. And no real control over capital flows.

(As we learned from the recipients of the corporate tax break who did not reinvest said tax break in Alberta.) Why should we have broad government interference in an investment agency? Are you sure you want a monopoly on pension investment?

Isn't some competition for clients and capital going to make Alberta stronger?

The bill that forces ATRF to use AIMCo is on the Order Paper for Monday. It goes without saying that I will comment on it ASAP. The schedule for the week appears to be in ram through mode.