The largest contributor to the growth of the PSPP assets is typically investment income.
Our investment strategy, which is guided by the SIP&P, aims to maximize returns within a reasonable level of risk in order to meet our pension obligation. The target asset mix is a vital element of our investment strategy and is determined by the PSPP Commission through an exercise called an Asset Liability Modelling Study (ALM Study). The last ALM Study was completed in 2022. The new asset mix is being implementeted and is slated to unfold over a span of 18 to 24 months.
Asset Mix at March 31, 2023
| Asset Classes | Target Range | Benchmark | Actual Allocation as at March 31, 2023 |
|---|---|---|---|
| Cash & Short-Term Investments | 0.0% - 4.0% | 0.0% | 1.8% |
| Long Core Plus Bond | 7.0% - 13.0% | 10.0% | 9.9% |
| Core Plus Bond | 17.0% - 23.0% | 20.0% | 26.6% |
| Global Equities | 30.0% - 40.0% | 35.0% | 41.1% |
| Global Real Estate | 7.0% - 13.0% | 10.0% | 10.7% |
| Global Infrastructure | 7.0% - 13.0% | 10.0% | 9.4% |
| Private Debt | 7.0% - 13.0% | 10.0% | 0.0% |
| Private Equity | 2.0% - 8.0% | 5.0% | 0.5% |