The Corporate Board sets the asset mix for the Plan, which includes fixed-income securities, equities, inflation-sensitive, and alternative investments. Over the past several years, LAPP has chosen an investment asset mix noticeably different than the traditional investment policy mix of many other pension funds in Canada. We have a sizeable amount in private investments like timberlands, real estate, and infrastructure, balanced by allocations to public equities and bonds.
This policy was developed to reduce the volatility of a traditional public equity market portfolio while maintaining sufficient long-term growth to meet the Plan’s long-term funding objectives. Looking back over long periods of time (10 years or more) the Plan has been reasonably successful in achieving this objective.
When determining the long-term asset mix for the Plan, the Corporate Board considers the following factors:
This Asset Mix Table breaks down the long-term asset mix of the Plan, providing weights and ranges as set out by the Corporate Board’s investment policy.