Thread by @yomeeks

This is your daily pension announcement: The Pension War room™️ begins a dive into the dung heap of AIMCo corporate governance. CEO Kevin has been busy. He appeared on a youtube broadcast of the Canadian Club "Pensions and the Pandemic" (it's boring)

This is what is wrong: CEO KEVIN IS NOT A PENSION EXECUTIVE. He is an investment executive. There is a big difference. Never has he gone to a job interview and been asked specific questions about pension liabilities. The Canadian Club called him a pension executive. He isn't.

Which gets to the AIMCO Board. It was an okay arrangement if you were just investing the Heritage Trust Fund. You know, a board selected from business luminaries in AB giving something back to AB. Undoubtedly influencing investment in AB oil and gas. #ABLeg

After all, Katz was on the board for a time. The problem is most of AIMCO's money is invested on behalf of pension plans not the Heritage fund by a 6 to 1 ratio.

There is a difference between a pension investment org and an investment org. #ABleg #handsoffmypension #aimcofail

Pension investment organizations can engage in managing both the assets (investments) and the liabilities (the money owed to pensioners). And, it is that delicate and nuanced balance that ATRF has done for years. #aimcofail

Straight investment orgs never have an eye on the money owed to pensioners.

As a result, AIMCO loses $4 billion down the toilet, they seem to shrug their shoulders and say "win some lose some".

Whereas pension investment orgs always have an eye to the liabilities.

The AIMCo Board needs to act as long term principals not agents with nothing to lose.

None of the Board is a member of a pension plan whose dollars they invest. #ABLeg #thatsjustwrong

Just in case you want in layman's description of what went on: AIMCo was selling insurance against a market crash. They probably sold it to a large bank in NYC. Over the last 5-6 years they earned 6-8% on the money invested by assuming all the risk of a market crash. #ABleg

Then the market crashed. They had to pay out $4 billion in insurance contracts in short order far outstripping any money invested.

One investment exec that I talked to today likened it to "trying to pick up pennies off the road in front of a steam roller"
#ABLeg #AIMCOfail

Which, I think, results in the most massive breach of the Board's fiduciary duty. This $4 billion, as far as I can estimate, is $8,500 each off of every civil servant's paycheque over the next several years. Thanks @jkenney
#ABLeg #AIMCOfail

Pension plans need direct representation on boards (see the ATRF Board for a good example). Sort of like BCIMC as we seem to be compared to them often. Plans also need to be fire investment managers when they act stupid. #ABLeg #AIMCOfail

Of course @jkenney is treating us the same as @Albertadoctors. Ignore agreements that have been in place since 1938, refuse to seek advice of affected parties, and then act injured when everyone hates you.
Right from the top: "no negotiation @jkenney knows best" #ABLeg

His only justification is that all the plans should be bound to AIMCo, no matter how bad the performance and no matter how baroque the AIMCO Board structure is.

The good news is that @Albertadoctors got @shandro to walk back some bad crap. Now is the time to demand action. #AB