A few commenters that are more trustworthy and make more financial sense than Mr. Uebelein:
Except the legislation says AIMCO CEO is a liar. Section 19 – “The Treasury Board may issue directives that must be followed by the corporation, the board, or both…”
Just show us the numbers… not the “assumed” calculations. Have the auditor general author report to determine exactly how much is “saved” with this transfer. I guarantee you ATRF, WCB and AHS funds will all incur higher administrative fees. None of the calculations provided in the media are GIPS compliant.
The reason that there are so many assumptions is that the numbers do not support AIMCo having lower fees. Remember that WCB and ATRF are not Provincial operations. As no prior consultation was held with either of these entities, AIMCo did not have access to their supporting expense calculations. As a result, AIMCo used assumptions that were in their favour. Unfortunately, those assumptions were not supported by fact.
Alison Dyer reply to null null
As far as the WCB and ATRF are concerned, there was no duplication of services. WCB and ATRF staff are not Provincial employees and, therefore are not funded by the taxpayer.
Mr. Uebelein is obscuring the real issue by gas-lighting and dangling a red herring. He speaks at length regarding AIMCo’s independence from the Provincial government regarding investment decisions. Unfortunately, that was never the issue. The issue is the independence of the funds under management at AIMCo. These funds are captive. In other words, pension funds like LAPP do not have the freedom to leave and choose their own investment manager. Now, through legislation, Alberta Health Services, Worker’s Compensation Board, and Alberta Teachers have had their funds hijacked from independent management of their own choosing. They will be moved to AIMCo and captured there.
It is important to understand that these funds did not belong to the Province. Nor was there duplication as these funds were not managed by Provincial staff. In addition, there was no prior consultation with AHS, WCB, or ATRF regarding the legislation tabled to force their funds move to AIMCo’s management. They were given no choice and no opportunity to rebut. Investment decision making at AIMCo was never in question. What is in question is that the independence of these funds to be managed by their owners, as they saw fit, was arbitrarily removed by Provincial legislation, and then given arbitrarily to AIMCo. Mr. Uebelein does not address that. Instead, he gaslights and obscures. By the way, dozens of people at AHS, WCB, and ATRF will soon be out of work, as a result. Since they were not Provincial employees, the Province will not be saving a dime…
David J Warren
Could the CEO explain why Aimco has invested in Junior oil producers who appear to be shell companies and are walking away from Abandoned wells? What about Pieridae Energy that looks like it is obvious that it will fail and yet is responsible for so many Failed wells which are abandoned and may be toxic. Why invest in companies that appear to be set up to fail and leave taxpayers with the clean up? Could you explain that? Will you invest more than 10% in the failing oil industry . Norway doesn’t.
“The Treasury Board may issue directives that must be followed by the Corporation, the board, or both.” — Chapter 19, Alberta Investment Management Corporation Act.
AIMCo CEO: Investment independence is essential to AIMCo’s mandate
by Kevin Uebelein, Dec. 11, 2019, Calgary Herald
I feel that it is very important to personally address the questions and accusations that have been raised in the media — both the traditional and social varieties — around the roles and relationships that exist between the Alberta Investment Management Corporation, AIMCo, and the provincial government. Specifically, there has been a lot written and said recently about the Alberta government’s influence or control over AIMCo’s investing decisions.
As AIMCo’s CEO, let me be absolutely clear on this issue: the Alberta government has no say whatsoever regarding where or how we invest. [Pfffffffffffffffffffffffft Not believable!] AIMCo’s operational and investment independence from government is such an important consideration of our business that it was explicitly written into our founding legislation [Pffffffffffffffffffffft! Again, not believable! Reference above], The Alberta Investment Management Corporation Act. Maintaining investment independence is essential to our ability to fulfill our mandate, which is to maximize investment returns by acting in the best interest of, and solely for the benefit of, all our [political masters]
As it stands today, AIMCo is responsible for the investment management of a strong majority of Alberta’s public-sector pension plans. We also manage the assets of the Heritage Savings Trust Fund [Ya, and look what happened to it!] and many provincial government accounts. Our team at AIMCo takes tremendous pride in this responsibility — a responsibility that should and does put our clients’ investment needs as the one and only objective.
Accusations that AIMCo does not exercise absolute investment independence are wrong. To suggest that recent moves by the Alberta government to broaden and solidify AIMCo’s scope of clients is motivated by a desire by government to control those investments is also wrong. I speak on behalf of all AIMCo’s leadership and board in saying that we would never allow our investment independence to be put in jeopardy. [“Stupid is, as stupid does.”]
I can also testify [He’s testifying is he? Did he swear to tell the truth, the whole truth and nothing but the truth? Did he write this piece in front of a Justice?] that at no time have I had anyone from this government attempt to challenge our investment independence, either directly or indirectly.
Rather than a bid for influence, the Alberta government has introduced the recent changes to AIMCo because they understand that in the very competitive world of institutional investing, scale and long-term stability are extremely important advantages: advantages than can and ought to be brought to bear here in Alberta. [Is that so? Like the decades of massive investment failure and financial losses by Alberta and the hundreds of billions of dollars in liabilities where there ought to be hundreds of billions of dollars in the bank!]
However, this is hardly a unique or Alberta-only observation. Elsewhere in Canada and around the world there are active moves to build larger, more sophisticated institutional pools of capital, with the end objective of being able to invest more successfully and by more efficient means for the collective end-stakeholders. This is exactly what AIMCo is dedicated to doing for Albertans. [Keep your filthy greedy fingers OFF my CPP!]
I believe that AIMCo is an institution that all Albertans should take pride in [Investing hundreds of millions of dollars in bankrupting frac companies? You gotta be kidding. I’m an Albertan but only disgusted by AIMCo’s sneaky untrustworthy operations. I repeat! Keep your filthy greedy fingers OFF my CPP!], and so it worries and disappoints me when untrue and undermining accusations about us are made and spread. [Join the club. Many Albertans are disappointed in AIMCo.]
Over our 11-year history, AIMCo has grown to be a successful, world-class investment organization.
AIMCo is World-class like this?
Some comments to one of Andrew Nikiforuk’s articles in The Tyee
It’s been built right here in Western Canada, away from the traditional institutional investment hubs, but without sacrificing one iota of investment savvy, sophistication or global scope and reach. I am grateful for the vote of confidence that the Alberta government has made in AIMCo. We will make every effort to deliver on our expanding responsibility to Alberta, but never at the cost of diminishing our absolute operational and investment independence. [Lie after lie after lie. Mr. Uebelein thinks they will make us trust AIMCo?]
Kevin Uebelein is chief executive officer for the Alberta Investment Management Corporation (AIMCo).
Refer also to:
Kenney goes a beggin’ to Trudeau for mega cash & tax cuts to give yet more $billions in corporate welfare to billion dollar profit raping oil patch; Kenney & CAPP want Canadians (and their heirs and their heirs and their heirs, etc.) to be forced to pay for oil & gas industry’s rape & pillage & pollution of Alberta.
Look Out Alberta Teachers! Over $19 Billion in retirement savings for teachers, state troopers and public workers lost over last decade by California & Colorado state pension funds investing in fossil fuels.
Energy: The Losing Sector in the Junk Bond Rally. This year, high yield corporate bond market produced best returns since 2016. Despite this strong performance, Energy sector, which makes up 11% of the HY bond universe, produced **negative returns.** Jason Kenney and AIMCo: Keep your grubby greedy mits off our pensions, including our CPP!~
“Impeach a Premier?” Jason Kenney & his UCP’s Omnibus Bill fires Election Commissioner investigating Kenney, transfers teachers’ pension funds **without their approval** to underperforming AIMCo. Kenney trying to turf RCMP too because they’re also invesigating him?
“Effectively, the shale boom is over.” Colorado’s 8 largest public oil & gas producers spent $27 Billion more than they made in past 5 years. Is that why Alberta gov’t wants our pensions? To feed the bleed via AIMCo?
2016: Timing is everything. Why did AIMCo (ATB/Heritage Fund connected) announce $200 Million (bailout?) investment in “Quite leveraged” Calfrac on same day NDP Rural Caucus try to get Nielle Hawkwood’s frac ban resolution on floor of NDP’s Annual Convention?