Asset Mix

The Board sets the asset mix for the Plan, which includes fixed income securities, equities and 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 higher amount in private investments like timberlands, real estate and infrastructure, balanced by a smaller allocation to public equities. We also continue to hold a sizeable allotment of investments to long 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 Board considers the following factors:

  • The Plan’s liability structure and obligations
  • The risk/return expectations and correlations among Plan assets and liabilities
  • The Board’s investment objectives and risk tolerance

This Asset Mix Table breaks down the long-term asset mix of the Plan, providing weights and ranges, as set out by the Board’s investment policy. For more detailed information, please read the Board’s Statement of Investment Policy and Goals, (SIP&G).

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