The Plan’s team of investment professionals implements the investment policies established by the Board of Trustees. The team recommends to the Board of Trustees the asset mix based on Asset-Liability Modelling studies conducted every few years. These studies test the future potential investment performance of various asset mixes and funded status and other key outcomes under a range of economic and demographic scenarios.
Asset mix aligned to liabilities
The Plan’s diversified investment portfolio falls into three broad categories: Interest-rate-sensitive, Inflation-sensitive, and Return-enhancing.
Interest-rate-sensitive and Inflation-sensitive assets help offset the sensitivities to changing interest rates and to inflation that impact the valuation of the Plan’s pension payment stream. Return-enhancing assets help the Plan meet its expected rate of return and keep contribution rates appropriate and affordable for contributing members and employers.
Because pension plans like ours have an investment time horizon that is decades into the future, they can provide stable sources of long-term capital for investments such as infrastructure, real estate and private equity.Julie Cays, Chief Investment Officer