Asset mix

Our investment professionals implement investment policies established by the Board of Trustees

A diversified portfolio

The team recommends to the Board of Trustees the asset mix based on asset-liability modelling studies. CAAT conducts these studies at least once every three years to validate its financial projections against a variety of diverse economic and demographic scenarios and to determine if any adjustments to the asset mix are needed.

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 to offset the effects of changing interest rates and inflation on the valuation of the Plan’s pension payments. Interest-rate-sensitive asset classes comprise long and universe bonds while Inflation-sensitive asset classes comprise real assets (real estate and infrastructure), real-return bonds, and commodities. Return-enhancing assets, comprising public and private equities, help the Plan meet its expected rate of return and keep contribution rates appropriate and stable for members and employers.