Investment Archives - AB Pol Econ

7Apr

By Bob AscahNo Comments

Demographics, Economic Data, Government Finances, Intergovernmental, Investment, Opinion/Research, Politics

The Frustrations of a FOIPP applicant- the case of the APP (Part 2)

Updated 8 April 2023 Key Takeaways By January 2023 all the technical work had been completed for a launch of the APP plan four months before the UCP campaign made no mention of reviving this policy recommendation of the "Fair Deal" Panel. The public service relied on the expertise of outside parties due to lack of in house actuarial expertise. This FOIPP disclosure did not reveal how much the government ultimately paid even though Smith provided the $1.8-million figure to her 630 CHED Saturday call-in radio show. Existing administrative structures aren't conducive for sharing information as the onus is on the deputy head to decide what to disclose making it very difficult for senior officials to offer advice contrary to the preference of their political masters. The "Fa...

AIMCO and the Heritage Fund- What is investment income? Part 3

26Feb

By Bob AscahNo Comments

Agencies, Government Finances, Investment, Opinion/Research

AIMCO and the Heritage Fund- What is investment income? Part 3

In the first part of this series, I investigated information the Alberta Investment Management Corporation (AIMCo) supplies to the Securities and Exchange Commission on their quarterly Form 13F filing. Some unusual findings were cited about AIMCo's U.S. holdings, that to my knowledge, have not been publicized before. In Part 2, I looked at AIMCo's total portfolio and performance metrics which are disclosed in its 2022 annual report, the latest available. I concluded that Alberta taxpayers and citizens deserve much better financial reporting on the significant assets managed by the Government of Alberta and its agencies. Indeed, given AIMCo's performance on its fixed income portfolio, I argued that it would be prudent for Treasury Board and Finance to consider repatriating managing short t...

3Feb

By Bob AscahNo Comments

Credit Ratings, Government Finances, Investment, Politics

AIMCo’s Portfolio and Performance (Part 2)

This series has been informed by the public meeting of the Standing Committee of Alberta Heritage Savings Trust Fund. An overview of the meeting can be found on Abpolecon.ca here. Part 1 investigated information the Alberta Investment Management Corporation (AIMCo) supplies to the Securities and Exchange Commission on their quarterly Form 13F filing. Some unusual findings were cited about AIMCo's U.S. holdings, that to my knowledge have not been publicized before. The 13F filing is the most current disclosure of AIMCo's assets to 30 September 2023. In Part 2, I examine AIMCo's total portfolio and performance metrics which are disclosed in its 2022 annual report, the latest available. At the Heritage Fund public meeting on 30 November 2023 (Hansard record), one of the problems ide...

Heritage Fund annual public meeting- Gaza, transparency, and many unanswered questions

13Jan

By Bob AscahNo Comments

Agencies, Investment, Opinion/Research, Politics

Heritage Fund annual public meeting- Gaza, transparency, and many unanswered questions

At the end of November, I attended the public meeting of the Standing Committee of the Alberta Heritage Savings Trust Fund. Go here to access the transcript of the meeting on 30 November 2023. The previous year I attended the public meeting on 27 October 2022- transcript here. In 2022, I was the only member of the public personally in attendance with others accessing the meeting via phone or social media. This year, there were nine citizens who spent two hours of their time watching the committee and asking Alberta Investment Management Corporation (AIMCo) and Treasury Board and Finance (TGF) officials questions. In previous years, there was greater public interest with venues as large as the Italian Community Centre booked for larger numbers. I sincerely hope that we will see more inte...

5Dec

By Bob AscahNo Comments

Economic Data, Employment, Energy, Government Finances, Investment, Politics

Prosper Free Enterprise! More handouts to multinationals

Updated 20 December 2023 If low taxes was the supreme good of libertarian governments and eliminated the need for additional company specific grants, why is the UCP government doling out up to $5-billion in additional handouts mainly to foreign=owned corporations for capturing carbon. The announcement by Premier Smith and the heretofore missing in action Brian Jean- Alberta's energy minister paved the way for another major announcement, this time Premier Smith alongside Deputy Minister Chrystia Freeland (see below). Alberta Carbon Capture Program Another successfully orchestrated communications announcement by Smith came this past Tuesday 28 November. With the wind in her sails, Smith has come off two federal high court victories (impact assessment and toxic plastics...

An Alberta Pension Plan- Thoughts, Ideas, Experiments -Episode 6 with Trevor Tombe, Virendra Gupta and Ellen Nygaard

26Oct

By Bob AscahNo Comments

Demographics, Economic Data, Financial Institutions, Government Finances, Investment, Politics

An Alberta Pension Plan- Thoughts, Ideas, Experiments -Episode 6 with Trevor Tombe, Virendra Gupta and Ellen Nygaard

Background On September 21st Premier Danielle Smith, Finance Minister Nate Horner and former provincial treasurer Jim Dinning gave a press conference about an Alberta Pension Plan. There were two features of the conference- first the public release of a long-anticipated report from actuarial and consulting firm Lifeworks. The second aspect of the release was the announcement of what is being called an engagement panel led by former Treasurer Jim Dinning. Dinning served under Ralph Klein and then contested unsuccessfully the PC leadership in 2006. Jim Dinning was Alberta Treasurer when CPP reforms were undertaken Source: Calgary Herald At the news conference Dinning said this about the idea of an Alberta Pension Plan (APP)- ”it could be a game changer for the financi...

18Sep

By Bob AscahNo Comments

Agencies, Budget, Credit Ratings, Investment, Politics

2023-24 First Quarter Fiscal Update

The First Quarter Fiscal Update released on 31 August 2023 by Treasury Board President and Finance Minister Nate Horner showed marginal change in the budgetary surplus estimated last February. This analysis looks through these numbers to underlying trends. With oil prices now over $90, there is some cause for optimism. So far this year WTI oil prices have averaged about $76.50 U.S./barrel which is about $2.50 U.S. lower than the budget estimate. Much will depend on whether western economies achieve a “soft landing” avoiding a deep recession with falling oil demand. On 14 September DBRS Morningstar raised Alberta’s credit rating a notch to AA (see discussion below). Is spending out of control? No On page 4 in the Fiscal Plan Summary table, total expenditure was $64.5 billion in 2022-2...

6Jun

By Bob AscahNo Comments

Capital Spending, Economic Data, Education, Energy, Government Finances, Investment

Ideas, Thoughts, Experiments- Alberta 2023 Conversation with thought leaders Episode 3- Lindsay Tedds

To watch the conversation go to Youtube This conversation was recorded at 1 p.m. on Thursday 18 May, before the leaders' debate with Professor Lindsay Tedds Associate Professor of Economics at the University of Calgary. Her research interests are eclectic and range from tax policy and public policy design and implementation involving a trans-disciplinary approach to harnesses the strengths of economics, law, public administration, and intersectionality. Our talk ranged widely from income inequality, building an inclusive workplace, the importance of policy stability for investment, societal values, contradictions between the UCP's socialistic spending promises and its free markets' position, education policy, municipal property taxes, environmental liabilities, the challenge of f...

A Nod to Independence- Alberta Sovereignty (within a United Canada) Act

12Dec

By Bob AscahNo Comments

Energy, Environment, Investment, Opinion/Research, Politics

A Nod to Independence- Alberta Sovereignty (within a United Canada) Act

Much ink, digital and audio content has been accumulated in the nearly two weeks that has elapsed from the Throne Speech and introduction of Bill 1. the Alberta Sovereignty Within a United Canada Act (ASWUCA) became live. Pundits, learned professors, business people and the loyal opposition have weighed in. The reviews have been rather negative for the most part with much of the criticism aimed at the Henry VIII clauses embedded in the Bill. I walk through the main portions of Bill 1 offering comments and opinions. From what Premier Smith tells us she is open to changes. These changes came a week later after heavy criticism from many quarters including the Calgary Chamber of Commerce. At the end of the day, the Act may have all the huffing and puffing that went into the equalization ...

Despite soaring profits, oil companies are not paying enough for their environmental damage

4Dec

By Bob AscahNo Comments

Energy, Environment, Government Finances, Investment

Despite soaring profits, oil companies are not paying enough for their environmental damage

Published: December 1, 2022 1.55pm EST from the Conversation with permission. Re-published in newspaper edition of The Globe and Mail, Alberta section, on 17 December 2022 and online at Winnipeg Free Press on 2 December 2022. Re-published in The Tyee on 11 January 2023 At the end of the third quarter reporting season in October, the Big Four oilsands producers continued to report record profit levels. Collectively, Cenovus, CNRL, Imperial Oil and Suncor earned $5.8 billion in the third quarter and $23.1 billion in the first nine months of 2022. The average return on capital during the period was almost 25 per cent. The only minor hiccup was Suncor’s reported loss — primarily due to a non-cash impairment charge of $3.4 billion against its Fort Hills assets. Despite the write-down, Sunco...