Thread by @yomeeks

This is your daily pension announcement: The Pension War Room™️notes that Bert Clark from Investment Management Corporation of Ontario (IMCO) sets the truth free on Travis' wild claims. #AbLeg #handsoffmypension
theglobeandmail.com/business/artic…

Central to the Travis argument: bigger investment funds will perform better because of lower costs and better investment opportunities.

That was not true in ATRF's case because it was already "large" at $20 billion. #AbLeg #handsoffmypension @MattJonesYYC really should read this

"Specifically, CEM found that, most funds with less than US$1-billion in assets achieved negative three basis points of NVA."

So as I have said many times, if you have a sub-$1 billion fund seek amalgamation. #AbLeg

"But bigger funds tended to perform better... while most funds with US$10-billion or more assets achieved 29 basis points of NVA over the same period."

In other words, ATRF at $20 billion was perfectly positioned to take advantage of size effects. #AbLeg #handsoffmypension

Bert doesn't mention the CEM data for extra large (>$100 billion) funds like @aimcoinvests. I have reviewed the academic literature in this space before. At this size funds tend to suffer from dis-economies of scale. Supersized funds are harder to achieve value add return from.

I do believe that this was misstated by the CIO of @aimcoinvests at the last Heritage Fund meeting. @SPhillipsAB

In other news, we are days away from having the new CIO announced for @aimcoinvests. I certainly have a firm position on who they need. #AbLeg #handsoffmypension

Here is Travis' official position in his latest letter to me:
"I further note that a review conducted by CEM Benchmarking Inc., ... concluded that AIMCo continues to be a low-cost, positive net value-add provider of investment services for its clients." #AbLeg #handsoffmypension

That is CEM damning @aimcoinvests with faint praise. Yeah, they might get you a value-add sometime.

They say nothing about achieving the investment goals of their clients which are 0.7-0.8% of value-add above benchmark. #Ableg #handsoffmypensions

I hope Travis Toews is okay. Not sure if he is one of the UCP MLAs gathering anti-Kenney delegates for the @jkenney leadership review. And, he certainly has not commented on our major trade route being blocked by terrorists. #AbLeg #handsoffmypension

I need to reiterate: the GOA does not guarantee teacher pensions. That guarantee was removed in 1992. Teacher pensions are guaranteed by the assets in the plans. And, the GOA is a minority contributor (49%) to the plan. #AbLeg