Thread by @yomeeks

Funny you should ask who was consulted:
1. AIMCO was consulted despite being in the mother of all conflicts of interest.
2. When it was clear that (1) was wrong they sent it to Peter Milburn in BC. He allegedly approved AIMCO's work, but has signed nothing. #AbLeg

https://twitter.com/jsharek/status/1380511363810750464

What should have happened is Travis should have hired a consultant (AON) to look at relative strengths of the investment operations or turned to the Auditor General for help #AbLeg #handsoffmypension

Peter Milburn was picked as the rubber stamper because Athana, the TBF Deputy Minister, worked with him in BC. #AbLeg #handsoffmypension

This is important because the AIMCO "business case" is nothing more than a marketing flyer. #AbLeg #handsoffmypension

This purported "business case" is really just an embarrassment to AIMCO. One that Travis relies on daily. Last year ATRF charged 76 bps for investment; LAPP charged 70 bps; where is the promised savings of 25 bps going to come from? #AbLeg #handsoffmypension

Despite the fact that saving a single bps is not going to help if investment return is lower. And GOA is steadfast in their resistance to critically examine AIMCO's investment return. (Investment people are really quite sensitive despite the brave front.)#AbLeg #handsoffmypension

None of this should have been in Travis' purview because the JOINT plan board was charged with finding the most cost effective investment solution. #AbLeg #handsoffmypension

My working hypothesis is that this was engineered by Kevin at AIMCO to exploit the UCP's hatred of unions and pad his pay packet while securing his future. (At least one of the other plans was getting ready to partially ditch AIMCO.) #AbLeg #handsoffmypension

Here are some quotes from unnamed AB pension execs and Board members:

"...AIMCo has issues with alignment and dis-economies of scale. As AIMCo has non-pension fund clients, its strategy is aligned more closely with an investment
fund (focusing on returns)...

...as opposed to a pension fund manager (focusing on the liabilities). In addition, achieving alpha is a greater challenge the larger the investor." #AbLeg #handsoffmypension

It burns when you say that out loud.

"Unfortunately, creating monopolies means that normal competitive constraints, including the right
to exit, will not constrain either provider. This presents risks in terms of the service and performance standards and the costs, of both organizations." #AbLeg #handsoffmypension

#AbLeg And one more.....
"AIMCo has met the passive-investment benchmark seven times in the last ten years. This is evidence
for subpar investment performance as AIMCo has failed to meet the equivalent passive investing
standards three times in the last ten years."

"AIMCo does not share the same risk appetite as the pension plan clients it serves. This can be seen
by the cyclical nature of the losses experienced in downturns such as the global financial crisis of
2008 and the current COVID-19 pandemic." #AbLeg #handsoffmypension