Podcast

This blog post series argues for increased transparency and scrutiny of Alberta Investment Management Corporation (AIMCo), which manages billions of dollars in public funds, including the Alberta Heritage Savings Trust Fund. The author critiques AIMCo’s limited disclosure of investment details, comparing it unfavorably to other major public pension funds that provide more comprehensive information. These posts highlight a lack of justification for the limited disclosure, citing responses from government officials at a public meeting that lacked concrete evidence. The author calls for more public access to AIMCo’s investment strategies and holdings to better understand how public money is being used, and the potential risks involved.

The three-part series titled “Why AIMCo Needs More Scrutiny and Transparency,” published on AB Pol Econ, critically examines the Alberta Investment Management Corporation’s (AIMCo) operations and advocates for increased transparency and oversight.

Part 1 highlights the lack of detailed disclosure regarding AIMCo’s investments, particularly those of the Alberta Heritage Savings Trust Fund (AHSTF). The article notes that while a comprehensive list of investments was published in 2011, no such updates have been provided since. This absence of transparency raises concerns about the public’s ability to assess how over $20 billion of public funds are managed. The author emphasizes the importance of public engagement and scrutiny, especially in light of recent changes allowing the reinvestment of the fund’s income. |Read Part 1|

Part 2 delves into AIMCo’s performance, focusing on the Alberta Growth Mandate (AGM) and the 2020 losses from the Volatility Trading Strategy (VOLTs). The AGM, introduced in 2015, aimed to invest a portion of the Heritage Fund in Alberta-based growth-oriented companies. However, the outcomes of these investments, particularly in the energy sector, have been questionable. Additionally, the VOLTs strategy led to significant losses in 2020, further underscoring the need for greater scrutiny of AIMCo’s investment decisions and risk management practices. |Read Part II|

Part 3 discusses the pros and cons of transparency and disclosure within organizations like AIMCo. It argues that while certain proprietary information may need to remain confidential, excessive secrecy can lead to unaccountable power structures. The article suggests that increased transparency, such as appointing representatives of major pension plans to AIMCo’s board, could enhance accountability and align the organization’s interests with those of its clients. The recent dismissal of AIMCo’s board and executives is cited as an opportunity to implement such changes and rebuild public trust. |Read Part III|

Overall, the series calls for AIMCo to adopt a more transparent approach to its investment activities, enabling public oversight and ensuring that the management of public funds aligns with the interests of Albertans.