This is your daily pension announcement: throwback to the 2008 financial crisis! You know, when 150 year old investment banks went bankrupt on derivative trading strategies! #handsoffmypension #travisfail #ABLeg
I don't want to panic anyone. But, AIMCo wants trust from teachers and other plan members. Both LAPP and PSPP, both exclusive AIMCO customers, finished 2019 below their return benchmarks. Would have been better indexed. #ABLeg
In the case of PSPP 1.46% below benchmark (benchmark=average return). Usually the goal is to earn some % above benchmark. (LAPP's goal is 0.8% above bench.) #ABLeg
For comparison's sake ATRF earned 1.4% ABOVE benchmark in the last fiscal year. Now, earning below benchmark one year out of a bunch is not unexpected. #ABLeg
But you will need to read the executive compensation reports that will be released shortly. No executives should be getting investment bonuses for below bench performance. Bonuses, BTW, that can be several times larger than base pay. #ABLeg #paycutforkevin
This is important because this current quarter AIMCO is apparently behind on its benchmark. So not only is the benchmark return negative due to the ongoing market turmoil, but the equity return is more negative than the benchmark. You want teachers' trust? #ABLeg #travistime
