Alberta Investment Management Corp., known as AIMCo, suffered far larger losses than comparable funds after investing in contracts that pay off only if stock markets remain stable. It lost billions of dollars when the economic collapse wrought by COVID-19 sent the S&P 500 and other stock benchmarks on a roller coaster ride, putting it on the losing end of the trades, according to several senior pension plan officials and other sources who are familiar with the situation.
The Globe and Mail is not naming the people because they aren’t authorized to speak publicly about AIMCo’s investing strategies.
The Edmonton-based Crown corporation manages about $119-billion on behalf of 375,000 members of provincial public retirement programs as well as public accounts such as the province’s $18-billion Heritage Savings Trust Fund. With investment decisions that affect pension beneficiaries as well as Alberta taxpayers, the loss raises questions about whether the strategy was too risky.
https://www.theglobeandmail.com/business/article-alberta-pension-manager-loses-4-billion-on-investment-bet-gone-wrong/?fbclid=IwAR2jUmpU4AV7uEimdHsepwdWQ7ZbMBtIjn8REYBHIMX9L2eImEbbQAKk6_Q
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