{"id":18422,"date":"2020-05-19T15:00:38","date_gmt":"2020-05-19T19:00:38","guid":{"rendered":"https:\/\/www.benefitscanada.com\/news\/aimco-board-undertaking-third-party-review-of-volatility-trading-strategy-146150"},"modified":"2020-05-19T15:00:38","modified_gmt":"2020-05-19T19:00:38","slug":"aimco-board-undertaking-third-party-review-of-volatility-trading-strategy","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2020\/05\/19\/aimco-board-undertaking-third-party-review-of-volatility-trading-strategy\/","title":{"rendered":"AIMCo board undertaking third-party review of volatility trading strategy"},"content":{"rendered":"<div class=\"alignleft clearfix\">\n<div class=\"wp-caption feature-image alignleft\"> <img decoding=\"async\" loading=\"lazy\" width=\"227\" height=\"170\" src=\"https:\/\/www.benefitscanada.com\/wp-content\/uploads\/2020\/05\/145165361_s.jpg\" class=\"attachment-feature size-feature wp-post-image\" alt=\"Copyright : lightwise \/\/ 123RF\" title=\"AIMCo board undertaking third-party review of volatility trading strategy\"> <\/div>\n<\/p><\/div>\n<p class=\"byline\"> <span>Staff<\/span>&nbsp;|&nbsp;May 19, 2020 <\/p>\n<p>The Alberta Investment Management Corp.\u2019s board of directors has released a statement outlining its response to the poor performance&nbsp;of its&nbsp;volatility trading strategy.<\/p>\n<p>In the wake of the coronavirus crisis, the strategy resulted in a loss of&nbsp;$2.1 billion or about two per cent of the AIMCo\u2019s portfolio.<\/p>\n<p>\u201cOversight of AIMCo\u2019s investment strategies and risk management is the responsibility of the board of directors,\u201d said the statement. \u201cWe deeply regret this result and are determined that the lessons from this experience will improve the corporation\u2019s management processes and prevent any similar occurrences.\u201d<\/p>\n<p><strong>Read:&nbsp;<a href=\"https:\/\/www.benefitscanada.com\/news\/aimco-calls-reports-of-losses-on-volatility-strategy-dramatically-overstated-145680\">AIMCo calls reports of losses on volatility strategy \u2018dramatically\u2019 overstated<\/a><\/strong><\/p>\n<p>The board said its first priority is&nbsp;limiting&nbsp;the damage from the volatility trading strategy.&nbsp;It also confirmed that no other investment strategies it uses could \u201c. . . generate substantial losses in very unusual circumstances.\u201d<\/p>\n<p>The board is also undertaking a comprehensive third-party review of the volatility trading strategy to identify what lessons can be learned and how those lessons can be leveraged to enhance the AIMCo\u2019s investment and risk management processes.<\/p>\n<p>The&nbsp;organization has tasked KPMG\u2019s financial risk management team to perform an independent review and is calling on the expertise of Barbara Zvan, former chief risk and strategy officer of the Ontario Teachers\u2019 Pension Plan, to support the board throughout the process.<\/p>\n<p>The board is aims to have the results of this review and corresponding process enhancements to share with the AIMCo\u2019s clients and shareholders by mid-June.<\/p>\n<p><strong>Read:&nbsp;<a href=\"https:\/\/www.benefitscanada.com\/news\/aimco-earns-10-6-return-for-2019-underperforms-benchmark-144924\">AIMCo earns 10.6% return for 2019, underperforms benchmark<\/a><\/strong><\/p>\n<p> <a href=\"https:\/\/www.benefitscanada.com\/news\/aimco-board-undertaking-third-party-review-of-volatility-trading-strategy-146150\">Read the full article at BenefitsCanada.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Staff&nbsp;|&nbsp;May 19, 2020 The Alberta Investment Management Corp.\u2019s board of directors has released a statement outlining its response to the poor performance&nbsp;of its&nbsp;volatility trading strategy. In the wake of the coronavirus crisis, the strategy&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/18422"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=18422"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/18422\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=18422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=18422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=18422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}