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

Source:  thestar.com

Link: https://www.thestar.com/business/2020/04/22/analysis-finds-alberta-public-pension-manager-loses-big-in-oilpatch-investments.html?source=newsletter&utm_content=a09&utm_source=ts_nl&utm_medium=email&utm_email=760BE779956395955CFBBA5C497D22A3&utm_campaign=sbj_23984

Discussion points:

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?