The Decibel
Why is Stephen Harper taking over Alberta’s pension fund manager?
Dec 2, 2024
James Bradshaw, an institutional investing reporter for The Globe, sheds light on the upheaval at AIMCo, Alberta's pension fund manager. He discusses the implications of Stephen Harper's recent appointment as board chair against a backdrop of leadership dismissals. The conversation delves into the balance between government influence and AIMCo’s independence, raising concerns over pension fund management. Bradshaw also highlights the challenges AIMCo faces in adapting to market conditions and the potential impact on public sector pensions.
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Quick takeaways
- The abrupt leadership changes at AIMCo raise serious concerns regarding transparency and the independence of public pension funds from government influence.
- Stephen Harper's appointment may alter AIMCo's investment strategies, impacting the financial security of pensions for approximately 500,000 public sector employees.
Deep dives
Leadership Changes at AIMCO
The Alberta Investment Management Corporation (AIMCO) recently experienced significant leadership upheaval, with the CEO and several senior leaders abruptly dismissed during a meeting. This decision came as a shock, not only to those removed but also to their colleagues, highlighting a lack of transparency surrounding the government’s motivations. Officials claimed rising costs were not aligned with improved investment performance, noting a 29% increase in operational costs from 2019 to 2023 despite a strong average return of 8%. The suddenness of these changes raises questions about the governance of AIMCO and the implications for its independence from the provincial government.
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