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1-403-220-5722 faculty.association@tucfa.com

Item from the Faculty Association’s Universities Academic Pension Plan (UAPP) Trustee

You may have read in the media that AIMCo, the investment manager for significant pension plans and other assets in Alberta, has incurred a substantial loss relating to an unwise investment strategy that it has been pursuing. The Chief Executive Officer of AIMCo, Kevin Uebelein, issued a public statement on 30th May (see https://www.aimco.ca/insights/a-message-from-the-ceo) in which the scale of the loss was estimated at around $2.1B on an investment portfolio of around $118.8B. This loss is on top of the “regular” fall in investment portfolios experienced by institutional investors worldwide, associated with the COVID-19 pandemic. AIMCo’s Board of Directors followed up with a public statement on 14th May (see https://www.aimco.ca/insights/a-message-from-the-board) announcing that it is undertaking a “comprehensive review” of the failed strategy to identify lessons learned and enhancements to AIMCo’s investment and risk management processes.

The “regular” and failed strategy losses will clearly have some impact on the UAPP, but the scale of this will not be known until the “shape” of the economic recovery from the COVID-19 pandemic becomes more clear. The UAPP Board of Trustees has posted publicly its Annual Report for calendar 2019 (see http://uapp.ca/media/1281/2019-annual-report-final.pdf) which includes an “update” page focusing on changes in plan assets since the year-end (as page 5) and also a “subsequent event” note to the financial statement (on page 65).

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