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This is your daily pension announcement: let's see how AIMCO is doing investing the Heritage Savings Trust Fund!
The latest quarterly report is available here. It is about the same size as ATRF. So good comparison. #AbLeg #Spoileralert #handsoffmypension https://www.alberta.ca/heritage-savings-trust-fund.aspx
The latest quarterly report is available here. It is about the same size as ATRF. So good comparison. #AbLeg #Spoileralert #handsoffmypension https://www.alberta.ca/heritage-savings-trust-fund.aspx
Q2 for AIMCO returned 2.6% versus a bench of 2.1%. Not bad. The large print on the front page says the six month return is 7.7%. But it does not show the six month benchmark which was 8.8%.
That is sub-optimal performance. The value add is NEGATIVE 1.1% #thatsbad #AbLeg #notgood
That is sub-optimal performance. The value add is NEGATIVE 1.1% #thatsbad #AbLeg #notgood
What should the value add be:
"In the SIP&G, the Ministry of Treasury Board and Finance expects that the investments held by the Fund will return approximately 100 basis points, or 1% per annum, above the policy benchmark."
1% value add goal #thathurts
#AbLeg #swingandamiss
"In the SIP&G, the Ministry of Treasury Board and Finance expects that the investments held by the Fund will return approximately 100 basis points, or 1% per annum, above the policy benchmark."
1% value add goal #thathurts
#AbLeg #swingandamiss
But six months is really too short to make conclusions:
Heritage Fund 5 year 6.8% (bench 7.4%, value add -0.6%)
Heritage Fund 10 year 8.8% (bench 8.6%, value add 0.2%)
Nowhere near 1% value add target. Not even close. #AbLeg #aimcofail
Heritage Fund 5 year 6.8% (bench 7.4%, value add -0.6%)
Heritage Fund 10 year 8.8% (bench 8.6%, value add 0.2%)
Nowhere near 1% value add target. Not even close. #AbLeg #aimcofail
In addition to the relative results, Heritage Fund also has a absolute 5 year investment target: CPI+450 bps+100bps
(this is entirely appropriate as a goal; long exp req)
The most recent 5 year expectation was 7.0%, The actual performance was 6.8%. That's a fail. #AbLeg #fail
(this is entirely appropriate as a goal; long exp req)
The most recent 5 year expectation was 7.0%, The actual performance was 6.8%. That's a fail. #AbLeg #fail
But the really interesting reading for Travis (who seems to be in hiding) is the investment cost.
Heritage fund annualized cost 0.80%
ATRF fund annualized cost 0.76%
Hold the phone! You mean it costs more to invest with AIMCO than ATRF? Yes, yes it does. #ABLeg
Heritage fund annualized cost 0.80%
ATRF fund annualized cost 0.76%
Hold the phone! You mean it costs more to invest with AIMCO than ATRF? Yes, yes it does. #ABLeg
