Strong governance, expert investors and a responsible funding policy
The CAAT Plan's investment strategy is developed out of an asset-liability analysis and detailed risk assessment. The Plan’s pension fund is well-diversified across a broad range of public and private asset classes and return sources. The guiding principles laid out in our Statement of Investment Policies and Procedures (SIPP) help ensure our assets are invested in a prudent and skillful manner, and follow the highest standards for quality, compliance and performance that will contribute to the long-term sustainability of the pension fund.
The Plan employs several strategies for managing investment risk, including diversification and liability-sensitive investing.
Diversification helps reduce the risk that certain market fluctuations and economic factors will have a negative impact on large portions of our portfolio at the same time. Asset classes that experience strong performance under certain economic conditions can balance out those with weaker performance.
Liability-sensitive investing helps reduce risk by considering that part of the fund will behave in a similar way as the Plan’s liabilities.
To ensure the strategy continues to meet the needs of our membership, the Plan periodically undertakes an Asset-Liability Modelling (ALM) Study to identify the best possible asset mix for the Plan. The study takes into consideration the Plan's liabilities, risk tolerance and long-term return requirements.