AIMCo announced that accounting firm KPMG LLP and former Ontario Teachers’ Pension Plan chief risk officer Barbara Zvan, pictured here on April 17, 2009, have been brought on board.Alberta’s government-owned money manager is launching a formal investigation into a recent $2.1-billion loss and promising to fix what ails a fund plagued by poor performance.
In late March, stock markets plummeted and then soared in reaction to the COVID-19 outbreak. AIMCo posted outsized losses when an investment strategy linked to volatility “performed particularly poorly,” the board said last Thursday in a press release.
AIMCo’s board took ownership of the trading losses last week and committed to improving performance at the fund manager. “Oversight of AIMCo’s investment strategies and risk management is the responsibility of the board,” the directors said in a press release. “We deeply regret this result and are determined that the lessons from this experience will improve the corporation’s management processes and prevent any similar occurrences.
Last year, Alberta Premier Jason Kenney announced the previously independent pension plan for the province’s teachers is moving into AIMCo next year, a plan the teachers’ union opposes. Mr. Kenney has also been considering moving the province’s contributions to the Canada Pension Plan into AIMCo.
globebusiness Bit late?