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.

Investment beliefs

In 2019, the board updated its investment beliefs to reflect changes in direction for investment policy and practices. These beliefs help define how the board seeks to create investment value in the context of future uncertainty, risk and opportunity. They also help us make practical decisions about responsibilities such as monitoring BCI as the fund’s investment manager, asset allocation, investment decisions, performance objectives and approach to responsible investment.

These beliefs help the board stay on a long-term, consistent course and provide a standard to judge investment practices against.

The beliefs fall into the following categories:

• The importance of good governance and oversight, aligning the investment activities with the plan’s overall objectives
• The management of the total asset portfolio as the most impactful role of the board on determining asset returns
• Implementation guidance on diversification of assets, long-term investing, active strategies, and currency and costs
• The importance of environmental, social and governance concerns to the plan and the board

The complete list of investment beliefs is in the plan’s Statement of Investment Policies and Procedures.