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Kenney said the transfer will save taxpayers money and “generate better returns,” while continuing to allow the teachers’ board to manage its investment strategy and level of risk under AIMCo’s execution.
The Local Authorities Pension Plan (LAPP), for which AIMCo manages a $50-billion fund, issued a statement Wednesday acknowledging AIMCo sustained “significant losses” and to reassure its 275,000 members, including hospital, city and school employees and retirees who pay into the fund, that the plan “is strong enough to sustain investment losses.”
Chris Brown, president and CEO of LAPP, said in a release the defined benefit pension plan is “not threatened by short-term market fluctuations.”
On April 8, AIMCo announced its returns for 2019, a total fund return of 10.6 per cent representing approximately $11.5 billion in net investment income. The annualized total fund returns over 10 years were 8.2 per cent. By comparison, the Ontario Teachers’ Pension Plan delivered a 10.4 per cent return in 2019, and 9.8 per cent annualized over 10 years.
