Thread by @yomeeks

This is your daily pension announcement: Good news for LAPP members! Not so good news for everyone else invested with AIMCO.... #ABLeg
Read the following message carefully where the CEO of LAPP rips AIMCO a new one: #owthathurts

lapp.ca/page/whats-new…

A couple of germane points to be made. First, your pension benefits are safe. Even though LAPP have endured huge losses the plan is still 109% funded (down from118%, anything north of 95% is great). LAPP could have reduced contributions, but no. #ABLeg

This is a testament to the hard work and dedication of the LAPP Corporate Board. An excellent result.

And, no thanks to AIMCO.

(For teachers, just a reminder that your pension contributions will go down in the fall due to strong ATRF returns.) #ABLeg

Second, to quote: "it is important for LAPP members to understand that LAPP Corporation is the pension manager for LAPP, not AIMCo."

AIMCO has been labeled in the media as a "pension manager" they, I can assure you, are not. They are an investment manager. #ABLeg

It might seem like a small thing, but investment managers have, generally, no regard to the liabilities of a pension plan. Kevin needs to be clear that he has nothing to do with the "pension" part of the pension investment manger. #ABLeg

BTW, was I the only person that noticed that Kevin Ubelein was taken off the Premier's Economic Recovery Council? Replaced in the middle of the night without a press release? Is this foreshadowing? #ABLeg #handsoffmypension

Third, this is the first look at AIMCO losses for various pension plans. Next week we will have the complete picture. In the meantime I will give you my back of the envelope calculations bases upon the message above. #ABLeg #handsoffmypension #thisisgoingtohurt

From the numbers provided it is possible to deduce that LAPP lost 6.07% due to market turmoil, another 3.4% was lost by active strategies not working and another 1.85% due to the volatility portfolio blowup that made the papers around the world. Total is -11.3% for Q1. #ABLeg

On the good side LAPP (apparently against the advice of AIMCO) had a separate downside protection portfolio in place that made 3.7% for a net Q1 return of -7.6%.

Good thing they established this separate downside portfolio. BTW, LAPP was the only plan protected. #ABLeg
#fail

We have yet to find out how much AIMCO under-performed the benchmark. That will be a sobering bit of info, because we could have paid the managers to stay home index the entire operation and earn very close to benchmark. #ABLeg

In fact, the volatility blow-up alone wipes all of the value added by Kevin in his tenure as CEO by my calculation.

So, I am just sick that he and his executive team have been collecting millions of dollars in bonuses for a positive value add over the last five years. #ABLeg

Now that the value add has been entirely squandered, are they going to pay those bonuses back? Nope.

If I was still the Board Chair at ATRF and we were considering external investment managers AIMCO would not even make the short list.

Thanks Travis, Athana and Peter. #ABLeg

I now have enough information assembled to calculate what ATRF would have earned had they invested with AIMCO since day 1 (about 11 years). Controlled for risk exposure and end date sensitivity. I do this to educate and empower you as pension plan members. #ABLeg #minburned #fail

Any guesses on how that will turnout? Travis always said it was about cost. Well, I will show you cost. #ABLeg #handsoffmypension #minburned @TravisToews