Asset Mix

We have a Board-approved strategic asset mix designed to deliver returns over the long term in order to provide secure and sustainable pensions. We invest in public investments either through the purchase of the instruments directly or through the use of derivatives. Private investments include holdings in infrastructure, private equity and real estate, which are selected specifically for their ability to provide more predictable returns and cash flows.

Our asset mix is based on the belief that over the long term, an allocation with exposure to private investments is well positioned to generate strong returns and consistent cash flow, with reduced risk to meet the Plan’s funding requirements. We finished 2015 at 52% in public markets and 48% in private markets, which was close to our target mix. This compares to our asset mix of 58% to 42% in 2014.