AIMCo investment loss a failure, says Phillips
By Alejandra Pulido-Guzman - Lethbridge Herald on July 21, 2022.
LETHBRIDGE HERALDapulido@lethbridgeherald.com NDP Finance Critic and Lethbridge West MLA, Shannon Phillips is responding to reports of recent losses incurred by the Alberta Investment Management Corporation.Phillips issued a statement following a report in the Globe and Mail about AIMCo being out as an owner of the European movie theatre chain Vue International, having bought the company along with another Canadian pension fund in 2013 for $1.48 billion.
“The failure of the Vue investment is another significant loss to Albertans, likely in the neighbourhood of $1 billion. It follows the loss of $2 billion of Albertans’ money due to AIMCo’s failed volatility-based trading strategy,” said Phillips.
She believes the responsibility for those losses falls on the previous AIMCo CEO, who she said was rewarded with a generous $10 million severance package by then-Finance Minister Travis Toews.
“AIMCo has demonstrated clear problems with its risk management approach. It also does not publicly disclose its investments, unlike similar provincial investment funds such BCIMC,” said Phillips.
She said AIMCo’s losses will affect the pension funds that the United Conservative Party forced into management by AIMCo, including the Alberta Teachers Retirement Fund, along with all Albertans through the Heritage Fund.
“This episode proves yet again how dangerous the UCP’s scheme to move Albertans’ CPP contribution into AIMCo management really is. The UCP must abandon this reckless gamble with Albertans’ pensions,” said Phillips. Follow @APulidoHerald on Twitter 4
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