Asset Mix – The Types and Combination of our Investments

The Federation chooses the asset mix for each fund through careful analysis of the liability structure of each plan. Asset-liability studies are conducted to help determine the right risk and return levels the Federation should pursue in its investment portfolios based on the benefits projected to be paid out in the future (liabilities). The result is a policy asset mix tailored to each fund that acts as a guidepost for long-term investment, which in turn improves the sustainability and stability of the STF’s pension and benefit plans.

Each fund is constructed to maximize returns without taking on unnecessary risk. The Investment Committee reviews and updates the Policy Asset Mix for each fund based on the changing nature of each plan’s assets and liabilities.

The Federation launched asset-liability studies for each fund in 2022 to determine whether changes to the pension and benefit plan’s asset mixes were warranted. As a result of those studies, the Federation will grow its allocation to alternative assets—infrastructure and private credit in particular—over the coming years with offsetting reductions in public market bond and equity investments. These changes are expected to generate more solid and stable investment returns.

Check out the Returns page to see how asset mix affects investment returns.

Note: You may notice that the STRP’s policy asset mix is different from its current asset mix. That’s because the policy asset mix is a target mix, while the current asset mix is a snapshot of what the fund looks like on a given day.