Canada. Alberta public sector pension plan fund falls $3.4B in quarter, pointing to AIMCo losses
An Alberta public sector pension plan says its fund dropped by $3.4 billion — or 6.5 per cent — in the first quarter of the year, calling it an “extremely difficult” period for investors due to COVID-19’s impact on financial markets.
But the Local Authorities Pension Plan (LAPP), which has 275,000 members, is also pointing to losses at the Alberta Investment Management Corporation (AIMCo), its mandatory investment manager under provincial legislation.
LAPP says total asset losses sustained by AIMCo amounted to $5.1 billion for the quarter. However, because LAPP initiated a downside-protection strategy, it said it managed to reverse some of the losses.
The move saved the fund almost $1.9 billion, LAPP said in a release Wednesday. Accounting firm to review AIMCo’s $2.1-billion investment loss “We will continue to work with AIMCo to achieve LAPP’s goals, and we are considering all available options for attaining better alignment with AIMCo on its approach to taking risk in investing LAPP’s assets,” Chris Brown, LAPP’s chief executive, said in a statement.
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