Thread by @yomeeks

This is your daily pension announcement: Well, for 48 hours now I have been stewing in a loathsome broth. I can't decide which of the following three things is the worst:

#handsoffmypension #idiot #travistime

1. Is it the worst that some idiot at AIMCo who probably makes $500,000 per year off the taxpayer wrote the business case to move ATRF pension investment? It is so deficient that well... see yesterday's Tweets. #petermilburn

2. Or is it the worst that a GOA Cabinet used this poor work as justification for a decision that will likely cost teachers and the GOA millions of dollars? #ripoff Come on, Travis the least you could do is not blame it on some mook from BC named Peter. #peterprinciple

3. Or is it the worst that our democracy got pissed on in the process? Omnibus bill rammed through in three days. If you added up the time the pension provisions were talked in the Leg maybe you get 20 min.

Thanks to all my peeps. Keep working the MLAs. Travis in particular up in GP. If you want to see the document cabinet used to separate you from your investment function:

1drv.ms/b/s!AgoiiRrUyb…

I will repeat there is an accepted methodology to compare pension fund returns. You need to account for risk and portfolio construction. It was not used here in any of the attempts to compare the funds.

The first thing you would do is not to compare AIMCo as a whole. That is what the AIMCo part of this document does. AIMCo is a pile of different funds that includes 7 pension funds. You would compare the 7 pension funds to ATRF, which is (gasp) a pension fund. #fair

But of course to compare these 7 funds to ATRF you would need to phone ATRF and get some data to run through a statistical modeling program. Wonder why Peter did not suggest that?

Another probative approach would be to take the ATRF asset allocation and sub in the asset class returns for AIMCO asset classes and see if the return goes up or down. This controls for risk as asset allocation is a true expression of the risk tolerance.

At the same time take the ATRF asset class returns and sub them into the LAPP asset allocation to see if LAPP would have done better if invested with ATRF. All of this data is publicly available. But, AIMCo had a $20 billion dollar client on the line. #truth

So they did not do what mattered. BTW the ATRF Board did that calculation and it available here...

atrf.com/Documents/ATRF…

This is what the risk adjusted return comparison would look like. Doesn't look good for LAPP. But, hey let us do that for all the pension funds that AIMCo invests.

Now look, I get it. You can't have Kevin who makes $3.4 million per year walking around thinking of himself as average. But, the problem is it is up to cabinet to demand good analysis and research to support decisions.

We will just call the approach that AIMCo used here the Peter Milburn methodology. #peterprinciple

Never to be used again in financial analysis.

Just one more thought. Represented here is the external managers that AIMCo uses for 20% of its assets. That they mention. They don't mention that ATRF has only 50% of its assets managed internally, and that number is going down by the day.

Somebody should have asked what ATRF's use of internal management would be when they complete project Whiteboard.

Can I get a material misstatement here? #travis