How the plan decides where to invest
Investing for such a large plan is complex. Policies help Municipal Pension Board of Trustees decide how and where to invest.
The board’s investment decisions are guided by investment beliefs, supported by investment policies, and validated through measurement.
- Investment beliefs: These statements define how the board seeks to create investment value. They also help the board make practical decisions about diversification, asset allocation, performance objectives and investment activities. They cover a variety of topics, including responsible investing and climate change.
- Investment policy: These policies outline the board’s investment strategy and overall framework for managing assets. They are documented in policies such as the Statement of Investment Policies and Procedures, and the funding policy.
- Measurement: The board measures the effectiveness of its investments using benchmarks, return targets and independent assessments by an actuary.