Asset Mix

Our asset mix policy is based on our belief that over the long term, an asset mix with greater exposure to private market investments is better positioned to generate strong, predictable returns and consistent cash flow with reduced risk to meet the Plan’s funding requirements. As a result, our investment strategy over the long term is to maintain our asset mix exposure to public market investments, such as public equities and interest bearing investments at approximately 57.5 per cent of the Plan’s net investment assets with the remaining 42.5 per cent representing exposure to private market investments, such as private equities, infrastructure and real estate.

Since the adoption of our asset mix policy in 2003, the Plan has reduced its exposure to public market investments from 82.2 per cent to 60.2 per cent at the end of 2008, and increased its exposure to private market investments from 17.8 per cent to 39.8 per cent at the end of 2008. The shift from public market investments to private market investments accelerated in 2008 with the acquisition of several significant private market investments and with the sharp reduction in the global equity markets, which significantly reduced the value of our public market investments. Our investment professionals are actively managing our asset mix, subject to global market conditions, current investment opportunities and our long-term targets.

Long-term asset mix targets