Description: The Alberta Investment Management Corp. (AIMCo) – the organization that manages the public sector pension funds in the western province – is coming under criticism for investing over $1 billion in the Alberta oil patch. A number of these investments have lost money, with one company collapsing despite a $60 million investment by AIMCo. Critics point out that unlike the Canada Pension Plan, AIMCo is subject to political influence, such as a clause allowing the Minister of Finance to assign chunks of the portfolio to another fund manager.
Date: April 22, 2020
1) Do you know anyone from Alberta who may be impacted by AIMCo’s investment strategy?
2) Why do you think the story seems to suggest that the Canada Pension Plan has a better governance model than AIMCo?
3) Wiley’s Understanding Financial Accounting identifies three types of pension plans on pages 455-457. Which type do the provincial employees in the province of Alberta have?